Hope everyone had a good long weekend, and a happy belated Father's Day to the dads out there. With markets closed Friday for Juneteenth, here's where things stand coming into the week. Last week was volatile. The Fed turned hawkish on Wednesday, taking rate cuts off the table and signaling a possible hike, and stocks sold off hard. The selling didn't last. By Thursday the market had erased the entire drop, led by the semiconductors (Intel rose almost 11% on news it would build chips in the US with Apple) and small caps, which closed at a record. The week finished higher than it started. The trend is in solid shape coming in, with all three major indexes still pointed higher. The open this morning was soft, concentrated in the large-cap names, but the selling pressure has eased since the bell. Small caps are leading, the broad market is roughly flat, and energy is higher as oil ticks up on renewed Middle East tension over the weekend. The week's two big tests come midweek. Micron reports Wednesday, the bellwether for whether the chip leadership holds. Thursday brings the May PCE, the inflation reading the Fed watches most closely. Both can move the market. For now, momentum has recovered and the bounce is holding.
