Key events this week: FOMC meeting, quarterly options expiration (“Quad Witching”), and a market holiday on Friday.
After pulling back last week, the S&P 500 found support and rebounded. It closed the week with a doji candle and gained 0.65%.
The Nasdaq 100 also finished with a bullish doji and rose 2.34% for the week.
The Dow Jones gained 0.66%.
The semiconductor sector, which sold off sharply last week, rebounded strongly and led the market again. Top performers included:
- KLAC +32%
- SNDK +27%
- INTC +25%
- AMAT +25%
- LRCX +20%
Software and data center stocks lagged:
- SMCI -27%
- ADBE -19%
- ORCL -13.8%
- ADSK -13.7%
Materials and Consumer Staples also posted solid gains. Energy and Communication Services finished slightly lower.
Earnings Outlook
S&P 500 companies reported strong earnings growth in Q1 2026:
- Earnings: +28.6% YoY, the fastest growth since Q4 2021
- Revenue: +11.8% YoY
The market expects strong growth to continue in Q2:
- Earnings: +21.7%
- Revenue: +12.0%
Only four S&P 500 companies are scheduled to report earnings this week.
The S&P 500 forward P/E ratio is currently 21.1, above its:
- 5-year average: 19.9
- 10-year average: 18.9
Key Events This Week
Monday
- June Empire State Manufacturing Index
- Homebuilder Sentiment Index
- May Industrial Production
- Capacity Utilization
- Earnings: CGC
Tuesday
- May Import Price Index
- Housing Starts
- Building Permits
Wednesday
- May Retail Sales
- Existing Home Sales
- Business Inventories
- FOMC policy decision
- Press conference by new Fed Chair Warsh
- Earnings: JBL, KMX
Thursday
- Quad Witching Day
- Weekly Initial Jobless Claims
- June Philadelphia Fed Survey
- Leading Economic Index
- Earnings: ACN, KR
Friday
- Markets closed for the Juneteenth federal holiday
Full-Year 2026 Outlook
The market expects:
- Earnings growth: +22.8%
- Revenue growth: +10.8%
For the second half of the year:
- Q3 earnings growth: +25.1%
- Q4 earnings growth: +22.6%
Revenue growth is expected to be:
- Q3: +10.7%
- Q4: +10.2%
Add comment
Comments