S&P 500 ends week +0.7% as chip gear rallies and software derates
S&P 500 week close: 7,431.46 (+0.65% on the week) Nasdaq Friday close: 25,888.84 (+0.31% Friday, +0.70% on the week) Sentiment: bullish
The S&P 500 added 0.65% over the week to 7,431.46, the Nasdaq gained 0.70% to 25,888.84, and the Dow rose 0.66% to 51,202.26, but the index numbers buried the real action. Semiconductor-equipment names rebounded 25% to 38% while enterprise software fell 11% to 19%, an intra-tech split of roughly 40 points in five sessions. The week closed risk-on: the Russell 2000 led at +3.90%, the VIX dropped 17.8% to 17.68, and Friday brought the largest IPO on record.
The week on Wall Street
Chips rebounded while software derated. A Broadcom guidance miss and a hot 172,000 payrolls print had wiped close to $1 trillion off chip stocks in a single session the prior week and pushed rate-cut odds further out. On Monday June 8, Nvidia CEO Jensen Huang called that selloff overdone and said the AI buildout is still early. Applied Materials (AMAT.US) rose 9.1% and KLA (KLAC.US) rose 10.3% that day, and the chip-equipment cohort extended gains through Friday.
The software cohort sold off. The "AI eats software" trade that has dogged the group all year resurfaced around Adobe's print, and Oracle (ORCL.US) and Autodesk (ADSK.US) each fell about 14% alongside it. Money rotated out of the companies AI might disrupt and into the equipment makers that supply the AI buildout. Small caps caught the same risk-on bid, with the Russell 2000 up 3.90% as Treasury yields eased, the US 10-year slipping about 5 basis points to 4.49%.
Sector scorecard (5-day)
- Best: semiconductor equipment. KLA (KLAC.US) +31.9%, Applied Materials (AMAT.US) +25.2%, Amkor (AMKR.US) +27.5%, Onto Innovation (ONTO.US) +27.9%.
- Worst: enterprise software. Adobe (ADBE.US) -18.9%, PTC (PTC.US) -17.0%, Oracle (ORCL.US) -13.8%, Autodesk (ADSK.US) -13.7%.
- Dispersion: roughly 40 points separated the best chip-gear names from the worst software names on the week.
- Breadth tilted to risk: the Russell 2000 (+3.90%) outran the S&P 500, Nasdaq and Dow, which clustered near +0.65%.
Top movers: week ending June 12
| Ticker | Week | Reason |
|---|---|---|
| TNGX.US | +53.0% | Pancreatic cancer combo posted a 92% response rate on June 8 |
| ICHR.US | +38.0% | Chip-equipment rebound; no company-specific news |
| NUVL.US | +35.5% | GSK agreed to buy it for $124 a share in cash |
| PAYO.US | +33.9% | Reuters reported Nuvei in talks to buy it for $2.7 billion |
| ELVN.US | +32.9% | Positive CML Phase 1 data plus FDA alignment on the Phase 3 dose |
| SMCI.US | -26.9% | Proposed a $7 billion equity raise to fund AI server orders |
| WOLF.US | -21.7% | Resale filing to register up to 33 million shares revived dilution fear |
| SAIL.US | -19.9% | Soft fiscal 2027 guidance overshadowed a first-quarter beat |
| PRIM.US | -19.0% | Renewables leadership shake-up revived execution-risk worries |
| ADBE.US | -18.9% | CFO exit and AI fears sank a beat-and-raise; lowest since 2019 |
Friday US session
- S&P 500: 7,431.46 (+0.50%)
- Nasdaq: 25,888.84 (+0.31%)
- Dow: 51,202.26 (+0.70%)
- Russell 2000: 2,943.99 (+0.79%)
- VIX: 17.68 (-9.05%)
Friday's risk-on tone had two clear drivers. SpaceX went public on Nasdaq under the ticker SPCX, priced at $135, opened at $150, and closed near $161 for a day-one gain of about 19%; at roughly $75 billion raised it was the largest IPO on record. Separately, advancing US-Iran negotiations lifted risk appetite and pressured the dollar, with the Dollar Index falling to 99.81, its steepest daily drop since May 6. The VIX fell 9.05% on the day to 17.68, near the low end of its 2026 range.
Macro themes that played out
- May CPI, released June 10, rose 0.5% month over month and 4.2% year over year. Core CPI rose 0.2% month over month, below the 0.3% consensus, and held at 2.9% year over year. The soft core reading cooled rate-cut fears into the back half of the week.
- May PPI, released June 11, ran hot at 1.1% month over month and 6.5% year over year, well above the roughly 0.7% consensus, a reminder that pipeline inflation stayed elevated.
- Initial jobless claims for the week ending June 6, released June 11, rose to 229,000 against a 220,000 forecast; continuing claims rose to 1.795 million.
- Fed officials stayed in the pre-meeting blackout all week ahead of the June 16 to 17 FOMC, so the data moved the tape without policy commentary.
Week ahead: Mon to Fri (ET)
- Mon June 15: Industrial production and capacity utilization for May, 9:15am ET.
- Tue June 16: FOMC meeting opens. This is Kevin Warsh's first meeting as Fed Chair.
- Wed June 17: May retail sales at 8:30am ET, then the FOMC rate decision and updated dot plot at 2:00pm ET and the Warsh press conference at 2:30pm ET. Markets widely expect rates held at 3.50% to 3.75%.
- Thu June 18: Initial jobless claims at 8:30am ET, forecast near 228,000. Accenture (ACN.US) and Kroger (KR.US) report before the open.
- Fri June 19: Juneteenth. US equity markets closed.
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