Markets Overview

U.S. equity markets are closed today in observance of the Juneteenth federal holiday, capping off a volatile week of trading. The broader market remains in the midst of a historic bull run, with the Nasdaq-100 up an impressive 43% year-to-date and the S&P 500 gaining nearly 10% over the same period. Despite warnings of an overheating market, major indices flashed an ultra-bullish signal on Thursday that has only been seen seven times in market history.

Earnings Reports

• Accenture (ACN): Shares of the tech consulting giant plummeted 18% on Thursday—its worst single-day drop in years—following a disappointing fiscal Q3 report, sparking fears that AI is actively cannibalizing traditional consulting revenue.
• Kroger (KR): The supermarket operator saw its stock sink after adjusted sales inched up just 0.5% year-over-year, falling slightly short of Wall Street's expectations.
• Micron (MU): The memory chipmaker's highly anticipated earnings report is imminent. Micron has been a massive beneficiary of the AI boom, with its stock surging nearly 300% year-to-date.

Fed & Economic Data

• The Warsh Era Begins: During his first FOMC press conference Wednesday, new Fed Chair Kevin Warsh maintained the status quo, repeatedly noting that "a task force is looking into it" when pressed on policy shifts. This stalling tactic effectively gives the Fed cover to hold off on any rate changes until December.
• Rate Cut Hopes Dashed: With inflation heating up and a strong labor market, Wall Street has largely abandoned its expectations for near-term rate cuts, prompting a recalibration of portfolios.
• Global Central Banks: The Bank of England followed the Fed's lead, holding its benchmark interest rate steady at 3.75% as expected.
• Inflation Outlook: President Trump stated he expects inflation to "come down like a rock" once the Iran war concludes, though macro analysts warn that persistent inflationary pressures will likely result in another mega COLA increase for Social Security beneficiaries next year.

Hot Sectors

• Semiconductors & AI: The silicon arms race is accelerating. Amazon (AMZN) is reportedly preparing to sell its custom AI chips to outside companies, potentially challenging Nvidia's (NVDA) dominance. Meanwhile, SK hynix has officially shipped HBM4E samples to major clients, intensifying the next-gen AI memory race against Samsung.
• Quantum Computing: Institutional money is quietly rotating into quantum computing stocks ahead of "Q-Day"—the theorized moment quantum computers break current cryptographic security.
• Nuclear Energy: Next-generation nuclear firm Oklo (OKLO) crushed the broader market on Thursday, closing up 4% as demand for clean AI datacenter power continues to drive the sector.

Stock News

• SpaceX (SPCX): The largest IPO in history continues to dominate market chatter. After popping 19% on its debut, the stock has climbed steadily higher, with analysts and investors already speculating about a potential merger with Tesla (TSLA).
• Intel (INTC): Shares of the legacy chipmaker jumped roughly 11% on Thursday after President Donald Trump announced on Truth Social that Apple (AAPL) has agreed to work with Intel to build chips.
• Tesla (TSLA): Goldman Sachs upgraded its Q2 EV delivery estimates for Tesla to 420,000 units, up from 405,000. Separately, Oppenheimer analysts suggest tracking Tesla's capital expenditures as the truest proxy for its AI progress.
• Target (TGT): The retail giant approved its 55th consecutive annual dividend increase, bumping the payout by 1.8% to $4.64 per share—marking the smallest raise in the company's Dividend King history.
• Defense: Defense contractors like Booz Allen Hamilton (BAH) and Lockheed Martin (LMT) experienced notable sell-offs this week.

Market Analysis

The market is exhibiting stark K-shaped behavior, largely driven by the AI super-cycle. On one hand, data-center demand has propelled stocks like Marvell (MRVL) from $80 to $325 in short order, while memory ETFs like $DRAM are breaking through multi-year resistance. On the other hand, traditional enterprise growth stories like Accenture are facing severe multiple compression as AI disrupts their core business models. Heading into next week, sophisticated investors should watch for Micron's earnings to set the near-term temperature for semiconductor valuations, while keeping a close eye on any developments from Chair Warsh's newly established Fed task forces.