S&P 500 & Nasdaq ATHs Face Fragility Amid Hot CPI/PPI, AI Surge, Oil Hormuz Shock
Key Questions
What triggered the recent selloff in the S&P 500 and Nasdaq after hitting record highs?
Hot CPI data at 4.2% headline, an oil price spike, and increased Fed hawkishness led to the initial decline. The S&P fell below 7300 on June 10 before a partial recovery.
What are the key technical support and resistance levels for the S&P 500 mentioned in the highlight?
Key support levels are at 7300 and 7170, while resistance is noted at 7700. The index closed at 7,511 on June 16 before dropping about 1.2% the next day.
How have the Mag7 stocks performed amid the June market volatility?
The Magnificent 7 stocks lost approximately $2 trillion in market value during June. This occurred alongside rotation into cyclical sectors.
What happened to oil-related stocks following the Iran peace developments?
Oil stocks fully reversed prior gains from Iran war tensions, with CRK down 40% and NOG down 35%. Crude prices became oversold near the 200-day moving average.
What does the pre-market futures movement on June 18 suggest for equities?
Futures were up 0.87% pre-market on June 18, indicating a potential rebound after the June 17 selloff. The overall status is described as climaxing.
Markets hit fresh records early June, then sold off on hot CPI (4.2% headline), oil spike, and Fed hawkishness. June 10 saw new lower lows (S&P below 7300). June 11-16 staged a rally on Iran peace hopes and oil plunge, but June 17 saw a sharp selloff after the Fed's hawkish hold. S&P closed at 7,511 on June 16, then fell ~1.2% on June 17. Pre-market June 18 futures up 0.87% suggesting a rebound. Rotation into cyclicals continues. Key support 7300, 7170; resistance 7700. Mag7 lost $2T in June. Oil stocks have completely reversed Iran war gains, with CRK -40% and NOG -35%, crude oversold near 200-day MA.