Asset Management Weekly Market Commentary

Market updates for the week ending
June 26, 2026

Key observations

• The S&P 500 finished the week lower as the information technology sector again detracted due primarily to weakness out of semiconductor stocks. In contrast to the market cap weighted S&P 500, the equally weighted S&P 500 ended the week in positive territory, highlighting the continued weakness at the ‘top of the market,’ specifically out of the ‘Magnificent 7.’ Smaller capitalization indices continue to outperform, buoyed by larger exposures to sectors such as financials, health care, and industrials which have been beneficiaries of outflows from communication services, consumer discretionary, and information technology stocks.
• A sharp selloff and spike in volatility in South Korea’s KOSPI index spilled over and weighed heavily on technology stocks stateside, even as Micron’s closely watched earnings release appeared to bolster the case for semiconductor and memory names. The KOSPI traded both limit up and limit down during the week, which forced trading to be halted for volatility on multiple occasions. Some stabilization in the KOSPI in the week to come would likely go a long way toward improving sentiment surrounding U.S. tech names.
• Treasuries caught a bid early in the week as energy prices continued to fall, with West Texas Intermediate (WTI) crude oil closing the week back at pre-conflict prices below $70 per barrel. Yields on shorter-dated bonds fell more than yields on bonds in the belly of the curve as May inflation data, while elevated, came in in-line with expectations, leading to a modest re-pricing of rate hike odds through year-end.

What we're watching this week

• The Conference Board releases its Consumer Confidence index for June on Tuesday, with the reading expected to improve to 94.3 from 93.1 in May.
• The Institute for Supply Management will release the Manufacturing ISM index for June on Wednesday, with the reading expected to fall slightly to 53.8 from 54.0 the prior month. The Prices Paid component is worth watching given concerns surrounding core goods inflation, and that reading is expected to fall to 79.0 from 82.1 the prior month. A reading above 50 indicates expansion or growth, while a reading below 50 indicates contraction.
• The June Nonfarm Payrolls Report will be released on Thursday, with the consensus estimate calling for 115k jobs to have been created during the month. The unemployment rate is expected to remain static month over month at 4.3%, while average hourly earnings are projected to have risen 0.3% month over month and 3.5% year over year.