Shesa's Weekend Stock Market Updates - 6|14|26

Welcome to my weekend updates

The U.S. stock market closed the week slightly higher after rebounding from the previous week’s selloff. The biggest story was SpaceX IPO which boosted overall market sentiment. I will write more on this later. Some selective technology and AI related Semiconductor stocks had a big rebound. Based on the latest news, President Trump said a few hours ago on social media that the deal with Iran was “now complete” and he authorized the reopening of the key Strait of Hormuz passageway. The Pakistan Prime Minister said an official signing ceremony would take place on Friday in Switzerland. We will wait and see..But this is a very positive news. 

Let's take a look to last weeks stock market Indices Performances:
• S&P 500: Closed at 7,431.46 on June 12.
 Weekly gain: +47.72 points, up +0.65%
• Dow Jones Closed at 51,202.26.
 Weekly gain: +335.48 points, up +0.66%
• Nasdaq Composite: Closed at 25,888.84.
 Weekly gain: +179.41 points up +0.70%

Economic Report last week
The consumer price index (CPI/Inflation), rose 0.5% for May, putting the annual inflation rate at 4.2%, up from 3.8% in April. After 3 years it went past 4% for the first time. As I said a couple of months ago, we may see inflation may go up to 4-5% due to escalated oil prices.

Producer Price Index (PPI): Up 1.1% month-over-Month, +1.1% vs. expected +0.7%/ This was much Higher than expected. Year-over-Year it was up +6.5% vs. expected 6.4%

Economic Report this week
Wednesday, 6/17: FOMC Interest Rate decision, Retail Sales
Friday, 6/19: Juneteenth Holiday - Stock Market is CLOSED

SpaceX (SPCX) IPO updates
As scheduled, SpaceX went public on Friday, 6/12. It was the largest IPO in the stock market history.  The Stock opened at $150 and went up to $176.52 finally closing at $160.95, up 19% and market capitalization of $2.1 trillion. 

In October 2024, I had said to my WhatsApp Investment group members that Elon Musk would be the first trillionaire of the universe. And he became so, on last Friday after SpaceX IPO. In addition, he created 4,400 new millionaires and nearly 400 of them surpassed $100 million. I took some position as part of IPO participation. Such stock should be accumulated very slowly over a period of time.

My WhatsApp poll on FOMC Decision
The FOMC is meeting on WED, 6/17. This will be the first meeting chaired by new Fed Chair Kevin Warsh. I conducted a poll whether the FOMC will raise interest rate on 8/17. Around 90% said, no interest rate hike. I agree with this opinion. Despite the fact that CPI and PPI have gone up significantly, I do not see a rate hike coming on Wednesday. The inflation numbers have resulted mostly because of escalated oil prices. There is news that a del between U.S and Iran has been reached and that straight of Hormuz is opened. If so the Oil prices should fall. Even if it takes few months to clear the backlogs from Hormuz, the market may factor in ahead of time. Hence, the oil prices should fall and that should bring the inflation down. In addition, Kevin Warsh is Trump's nominee, so I do not think Warsh may be in a hurry to raise rates. Having said that, Fed may caution that if inflation keeps going up it may take appropriate action as needed. I can't predict but something in that line.. 

Oracle (ORCL) Earnings
The company beat top and bottom line. 
EPS: $2.11 vs. $1.96), Beat 
Revenue: $19.2 billion, +21% YoY vs. $19.1 billion expected

My view: Beat on both top and bottom line, powered by explosive cloud/AI infrastructure growth. However, the company said to have heavy capital expenditure plans and raise $20B through debt and more issue of equity. The backlogs have gone up but company is on spending spree, hence the stock may face short term challenges. 

Stocks to watch
SPCX, TSLA, MU, NVDA, DELL, MRVL, NBIS, APLD, INTC, GOOG, IONQ, SOXL, NBIS, INTC

Note: The above are not recommendations. 

What to expect?
We saw the CPI/Inflation as well as PPI picked up significantly in the last couple of months mostly due to high oil prices. However, market has been robust due to great earnings from technology companies. The market keeps bouncing back. However, we saw what happened on Friday, 6/5, when market got obliterated. There may be such sudden jerks occasionally. Hence, taking some profits and preserving some case is always a good idea in my view. Per President Trump, the deal between U.S and Iran deal is done and planned to be signed on Friday. Though I will not say it's a done deal, but this news is very positive and we should see the market bounce back. 

NOTE: Next week I won't be publishing my Weeknd updates. 

Comments

Post a Comment

Popular Post

Shesa's JUNE 2026 Investment Blog

Welcome to Shesa’s investment Blog!  U.S Stock Market Update April was one of the spectacular months for the stock market but market continued to keep the bullish momentum into May. All the major indices hitting multiple new record highs amid robust corporate earnings, AI/tech leadership, and fluctuating optimism around U.S and Iran geopolitical developments and pullback in the oil prices. The Nasdaq was again the star, up 8% for the month. The S&P 500 finished up 5% , while the Dow was up about 3% . Please note that Nasdaq was up 15% in April and S&P 500 was up 10.5%. All in all, April and May were fantastic months for the investors. The semiconductor stocks continued its mammoth momentum. So far, Semiconductor index has gone up astronomical 59% for the year . The Small Cap - Russell 2000 is in distant second with 17.6% . Some software stocks also bounced back well. The S&P has gained 19% over the last 9 weeks, 16th biggest 9-week gain for the index since 1950 . M...
Read more

Shesa's Stock Market Weekend Updates - 5|25|26

Welcome to my weekend's updates Last week stock market had a modest run with multiple consecutive weekly gains, driven by resilient earnings and AI enthusiasm. Nvidia (NVDA) had another good quarter and solid guidance but stock retreated down. Oil prices and bond yields went up significantly and later in the week it came down slightly giving some respites for the investors. It can be noted that the 30-year Treasury yield briefly topped 5.19% on last Tuesday  for its highest level in nearly 19 years . Let's see the indexes now.  S&P 500: Closed at 7,473.47, up 0.88% marking its eighth consecutive weekly gain, the longest streak since late 2023. Dow Jones closed around 50,580, up 0.58% . Nasdaq had modest gain rising 0.45% finishing at 26,343.97 for the week. Key News Per President Trump, a peace deal between the US and Iran has been “largely negotiated,” and 90-95% complete per report for the opening of Strait of Hormuz. If it happens, it would bring the oil pri...
Read more

Shesa's Weekend Stock Market Updates - 6|7|26

Welcome to my weekends updates Last week we saw strong early momentum after May’s rally but a huge sell-off on Friday, driven by a strong U.S. jobs report that raised interest rate concerns and some other factors. Let us first look into the  U.S. stock Indices Performance: • S&P 500: Closed at 7,383.74, down -2.64% on the day. It had hit recent highs near 7,620 earlier in the period before pulling back. • Dow Jones Closed at 50,867, down -1.35% . It had gone past 51,000 earlier.  • Nasdaq: Closed at 25,709, down a steep -4.18% on Friday, reflecting heavy tech selling.  Nasdaq had its worst day since APRIL 2025. The drop of 1,121.53 was the WORST points drop ever in the history of Nasdaq. The technology stocks and particularly semiconductor stocks were hit the hardest as they had appreciated too much. So, what caused this massive drop in the stock market, particularly Nasdaq. First, the non-farm payrolls jumped to 172,000 vs. estimated for 80,000. Unemployme...
Read more