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The CB Weekly Market Recap (June 21st – June 27th, 2026) ⚡️

🔴 The market spent the week unwinding the rally it spent two months building. The S&P 500 closed Thursday at 7,354.02, down nearly 2% on the week. The Nasdaq fell 4.6% to 25,297.62, posting its fifth consecutive losing session. The Dow bucked the trend, rising 0.6% to 51,876.11.

🔴 The story this week was a violent rotation out of technology and into defensives; and for once, the catalyst wasn't Iran. It was the AI trade itself starting to wobble.

🔴 The selling began Monday and never really stopped. Alphabet dropped 5% on Monday amid concerns about AI talent departures, dragging communication services to its worst day since the April 2025 tariff turmoil. Amazon fell 4.8%, Meta 2.3%, and Microsoft 3%. SpaceX, which had been the toast of the market, fell 16% on Monday. This was its third straight daily decline, with the stock giving back a chunk of its post-IPO gains.

🔴 Tuesday brought a global tech rout. A sell-off that started in U.S. memory chips spread overnight to Asia. Trading in South Korea was temporarily halted after an 8% plunge in the Kospi triggered a circuit breaker; the index closed down 5.8%. Micron sank almost 10% in premarket ahead of its earnings, despite being up more than 300% on the year.

🔴 The thing that broke sentiment was a single headline. The New York Times reported that OpenAI is leaning toward delaying its IPO until 2027, after advisers told Sam Altman he could either wait for a $1 trillion valuation or list sooner at a lower one. Altman reportedly called anything below $1 trillion a nonstarter. The delay raised doubts about the sustainability of AI infrastructure spending.

🔴 Micron's earnings proved the problem isn't fundamentals. The company reported record Q3 revenue of $41.46 billion, up 346% year-over-year, with 84.6% gross margins and $50 billion in Q4 guidance. And yet the stock kept sliding.

🔴 On the economic front, May PCE confirmed the inflation scare but also marked its peak. The Fed's preferred gauge came in at 4.1% year-over-year, crossing 4% for the first time since April 2023, with core at 3.4%. On paper that screams rate hike. But the market shrugged, because the year-over-year jump is entirely backward-looking energy data from May — before oil collapsed. The monthly increase actually came in below expectations, which is why gold rallied and equities held.

🔴 On that note, Brent crude fell 4.33% on Wednesday to settle at $73.74 — its lowest level since before the U.S. and Israel first struck Iran in late February. WTI slid 3.92% to $70.34. Treasury yields fell with oil, the 10-year dropping below 4.5%. If crude holds here, the June inflation data due mid-July could come in dramatically lower, potentially erasing the entire rationale for the hawkish dot plot Warsh delivered last week.

🔴 That said, tensions may be back on the rise as the ceasefire faced its first real stress test late in the week. An IRGC drone struck a Singapore-flagged cargo ship in the Strait of Hormuz on Thursday, prompting the International Maritime Organization to pause its vessel evacuation operations. On Friday, the U.S. launched its first strikes on Iran since the June 17 memorandum was signed, hitting missile sites, drone storage facilities, and coastal radar installations in what CENTCOM called a "powerful response" to Tehran's "dangerous behaviour." Iran retaliated Saturday with drone strikes on Bahrain. Tehran's framing is that none of this constitutes a violation. Parliamentary security chief Ebrahim Azizi posted that "the Strait of Hormuz is governed by Iran" and that the episode was "ceasefire management," not escalation.

🔴 As for crypto, it had a brutal week, getting hit from both sides of the same trade. Bitcoin slid below $60,000 on Thursday for the first time since 2024, trading around $60,100 by Friday — down roughly 6% on the week and 22% off the May peak of $77,623. ETH fell to ~$1,560. The painful irony is that crypto is being crushed both by the AI trade unwinding and by the money that had rotated out of crypto into AI in the first place. ETF outflows, a stalled CLARITY Act, and Extreme Fear sentiment (Fear & Greed at 24) have left BTC with no near-term catalyst. The 200-week moving average near $62,457 has broken, and $58,000 is now the line in the sand.

🔴 Looking ahead, next week is holiday-shortened with markets closed Friday for July 4th, so nonfarm payrolls lands Thursday instead. The real test comes mid-July, when the June inflation data starts flowing in. That's when we find out whether cheaper oil can rescue this market from an AI trade that suddenly looks over-owned and over-leveraged. Stay sharp lads.

#MicronOvertakesMetaInMarketValue #Get2SharesOfSKHynixAtZeroCost #TradFiCFDGoldMasters