Market Trends in US Stocks (June 18): Walsh's Pivot Ignites Broad Sell-Off, SpaceX Suffers First Drop, Semiconductors Sole Safe Haven
**U.S. Market Trends (June 18): Wash Sparks Full-Scale Sell-off; SpaceX's First Drop, Semiconductors the Only Safe Haven**
Markets plunged after the June FOMC meeting. The "dot plot" revealed a hawkish shift, with half the officials projecting at least one rate hike in 2024. New Fed Chair Wash, in his press conference, announced the abandonment of forward guidance, stating he "can't tell you what the next step will be." This policy uncertainty triggered a broad sell-off.
All major indices fell over 1%, with the S&P 500 down 1.21%. The VIX volatility index jumped 12%. Treasury yields spiked, and the dollar surged to a two-month high, while gold erased its weekly gains.
The sell-off was led by rate-sensitive sectors. Meta plunged over 5%, leading the Magnificent 7 lower. SpaceX closed down ~5%, marking its first decline since its IPO, as valuation pressure from higher rate expectations took hold.
The sole market bright spot was semiconductors. The Philadelphia Semiconductor Index rose 1.38%, with Applied Materials, Lam Research, and Arm Holdings all posting significant gains. The narrative held that long-term AI computing demand remains intact, driving a rotation of funds from high-valuation software/internet stocks into infrastructure and equipment names.
Retail sales data came in strong, and EIA crude inventories fell sharply, supporting the view of persistent inflation and limiting the Fed's scope for easing. Traders fully priced in a rate hike by October, with September seen as likely.
In summary, Chair Wash's debut dismantled the market's traditional policy anchors, injecting new uncertainty. While the AI investment thesis provided pockets of resilience in semiconductors, the repricing of rate-sensitive, high-valuation technology stocks appears to have just begun under the new "hawkish reset" framework.
marsbit06/18 01:12
