US equities closed Thursday in a deceptively mixed fashion, with headline indices masking a meaningful leadership shift under the surface. The S&P 500 slipped modestly, -.01% to 7357.49, the Nasdaq fell more sharply by .46% to 25,358.60, and the Dow (51,920.62, +.14%) and Russell 2000 (3007.86, +.71%) managed to grind higher as investors digested a hotter‑than‑expected PCE inflation report and continued to reprice the once untouchable AI and Big Tech trade. Against that macro backdrop, today’s tape reads less like a classic “risk-off” day and more like a market methodically rotating away from crowded growth winners into cyclicals, defensives, and small caps that had been left behind.
Hot PCE keeps the Fed in play
At the center of today’s narrative was the latest read on the Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) price index. Core PCE — which strips out food and energy — came in hotter than policymakers and investors would have preferred, reinforcing the idea that disinflation progress has stalled just shy of the Fed’s 2% target. Headline PCE also printed on the warm side, with energy, housing, and services contributing to the upside. That combination of sticky core inflation and still‑solid consumer spending keeps the “higher-for-longer” policy discussion very much alive. For markets, it means that rate‑cut hopes have to be tempered by the reality that the Fed can’t declare victory on inflation just yet, especially with nominal growth holding up and labor markets only gradually cooling.
Big Tech and the AI trade lose altitude
For much of the past year, the dominant equity story has been AI — and the mega‑cap platforms, cloud providers, and chipmakers enabling it. That trade is now clearly in a reassessment phase. Even as companies like Micron (MU, $1,213.56, +15.81%) deliver strong results and upbeat guidance on memory demand and AI‑linked workloads, the market is questioning how much of that good news is already in the price. Elevated valuations, massive capital expenditure plans, and rising energy and infrastructure costs are forcing investors to take a harder look at the true return on AI investment. Indeed, today’s action fit that theme. Semiconductor names and select hardware plays were able to show relative strength, benefiting from secular demand for compute and memory. But the broader tech complex — software, internet, and consumer tech — remained under pressure. The stocks most exposed to data center build‑outs, cloud AI infrastructure, and power consumption saw continued selling as markets recalibrated just how far and fast AI‑driven earnings can grow in the near term.
Factor and sector rotation beneath the surface
Beneath the index level, Thursday’s session extended a pattern that’s been building for several days. On a factor basis, value, quality, and smaller‑cap exposures outperformed momentum and high‑beta growth. On a sector level, the laggards and leaders looked notably different from the prior AI‑driven regime. Energy and parts of technology remained under pressure, reflecting both recent volatility in crude oil prices ($71.92, -23.40% over the past month) and the market’s pivot away from the highest‑multiple growth names. By contrast, industrials, selected materials, and financials showed more resilience. Banks, in particular, benefited from the prospect that persistently higher rates could support net interest margins, even as they must balance that against credit‑cycle risk. Defensive areas — such as certain staples and health care names — also saw incremental interest from investors looking to stay invested in equities while dialing down exposure to the most crowded and volatile pockets of the market. This rotation is not yet a wholesale abandonment of growth, but it is clearly a deliberate rebalancing toward cash flow visibility, balance‑sheet strength, and valuation support.
Rates, global context, and the macro narrative
The rates backdrop added another layer of complexity. Treasury yields, which had been rising on the back of strong data and revived inflation worries, eased slightly into the close. That move suggests investors see some probability that tighter financial conditions and equity volatility — especially in the tech complex — will help cool activity and inflation over time, potentially doing some of the Fed’s job for it. Globally, easing geopolitical tensions and softer crude prices have provided a modest tailwind to risk assets outside the U.S., particularly in markets like India where benchmark indices have been pushing to fresh highs as oil retreats. At the same time, currency markets and volatility gauges were relatively calm, implying that investors view today’s PCE‑driven repricing as an adjustment within the existing regime rather than the start of something structurally new.
VP Watchlist Updates
Amwell® (NYSE: AMWL) a leading provider of a comprehensive SaaS-based software platform for technology-enabled healthcare, closed at $8.40..
Eupraxia Pharmaceuticals Inc. (EPRX, $6.41, +2.56%), a clinical-stage biotechnology company leveraging its proprietary Diffusphere™ technology designed to optimize local, controlled drug delivery for applications with significant unmet need, announced (May 5) the first Eosinophilic Esophagitis Endoscopic Reference Score (EREFS) data from its ongoing Phase 1b/2a part of the RESOLVE trial evaluating EP-104GI for the treatment of eosinophilic esophagitis (“EoE”). These data were also presented at the ongoing Digestive Disease Week (“DDW”) conference in Chicago. “The EREFS is an important, validated visual index of severity of EoE disease in the esophagus of patients. It measures edema, rings and strictures and other visible markers of disease often associated with symptoms. Today’s data demonstrated improvement in two key outcomes with EP-104GI in the treatment of EoE: first, that a full injection protocol of 20 injections resulted in more pronounced improvement than a protocol with fewer injections and less coverage area within the esophagus; second, with the higher number of injections, a consistent response in both the inflammatory and fibrotic sub scores of EREFS was observed,” said Dr. James A. Helliwell, Chief Executive Officer of Eupraxia. “This EREFS data being reported at DDW is consistent with the improvements we have seen in EoE symptoms and tissue health (EoEHSS) and suggests improvement in inflammation, fibrosis and the associated narrowing of the esophagus.”
Modular Medical, Inc. (NASDAQ: MODD, $4.12), a leader in innovative, patient-centric insulin delivery, announced (June 24) that the Pivot™ tubeless insulin patch pump is now commercially available. This marks the start of real-world patient use, and the Company’s transition to a commercial-stage medical device company. As only the second fully electronic, tubeless insulin pump available in the United States, Pivot is designed to make pump therapy simpler to learn and easier to live with. Its removable two-part design and 3 mL reservoir, intuitive interface, and flexible, wearable form factor support everyday activities, such as showering and sports, with no battery recharging required – all while maintaining clinical accuracy and connectivity. “Reaching commercial availability is a transformational milestone that marks Modular Medical’s transition from a development-stage company to a revenue-generating commercial business,” said Jeb Besser, Chief Executive Officer of Modular Medical. “As only the second fully electronic tubeless pump on the U.S. market, Pivot is positioned to serve a large, underserved ‘almost-pumper’ population. With first shipments beginning this week, we are focused on disciplined execution, as we scale adoption and seek to build long-term value for patients and shareholders.”
On (June 4) the launch of PivotPump.com, a patient-focused website designed to support individuals seeking a simpler path to insulin pump therapy. This launch follows the Company’s receipt of U.S. Food and Drug Administration (“FDA”) clearance in April 2026 for its Pivot™ insulin delivery system. The FDA clearance represents a significant milestone in Modular Medical’s strategy to expand access to insulin pump technology, particularly among individuals historically underserved by existing solutions. The Company remains on track for commercial launch in the fall of 2026. Pivot is designed for people living with diabetes who rely on daily insulin injections, as well as those who have encountered technological, usability, or cost-related barriers with traditional pump systems. The system emphasizes simplicity and ease of use for the patient and full access to clinical information for the clinician to reduce adoption friction. The PivotPump.com website provides accessible, educational content on insulin pump therapy and highlights the Company’s focus on real-world usability and supporting patients in evaluating and adopting pump-based diabetes care.
Similarweb Ltd. (NYSE: SMWB, $5.15), a leading digital data and analytics company powering critical business decisions, announced (June 15) that it has surpassed $300 million in Annual Recurring Revenue (ARR) and signed two multi-year enterprise contracts, each representing seven-figure ARR commitments. Collectively, these contracts represent approximately $47 million in Total Contract Value to be recognized over the next three years and were signed during the second quarter of 2026.
Triller Group Inc (Nasdaq: ILLR, $3.05,+296.57%), a technology and media company operating Triller App, a social media and live-streaming platform focused on music, sports, fashion and culture, together with AGBA Group, a Hong Kong-based financial-services and platform business with longstanding operations in wealth distribution, healthcare and related services across Asia, today announced that it has entered into definitive agreements to acquire a significant position providing economic exposure to SpaceX to be held as a strategic treasury asset on the Company’s balance sheet.
DPC Holdings Limited (“Doncasters” or the “Company”), a portfolio company of the private equity and credit investment affiliates of J.F. Lehman & Company, LLC (“JFLCO”), completed a successful IPO and listed on the New York Stock Exchange (NYSE) on June 25, 2026, under the ticker symbol “DPC” closed at $46.88, +42.06%. Doncasters is a leading independent manufacturer of complex, highly engineered precision cast components and nickel and cobalt-based superalloys primarily serving the aerospace and IGT end markets. Doncasters intends to use its net proceeds from this offering to, among other uses, repay outstanding indebtedness and for general corporate purposes, including funding working capital and future growth projects.
The Sources
- CNBC – Stock market live updates (June 24, 2026)
https://www.cnbc.com/2026/06/24/stock-market-today-live-updates.html - Nasdaq – Stock Market News for Jun 25, 2026
https://www.nasdaq.com/articles/stock-market-news-jun-25-2026 - Yahoo Finance – Stock market today: Dow and S&P 500 rise, Nasdaq slips as PCE comes in hot, Big Tech falters
https://finance.yahoo.com/markets/live/stock-market-today-dow-and-sp-500-rise-nasdaq-slips-as-pce-comes-in-hot-big-tech-falters- - Yahoo Finance – Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows
https://www.cnbc.com/2026/06/25/pce-inflation-report-may-2026-.html - Yahoo Finance – Nasdaq, S&P 500 fall as global chip sell-off spurs AI doubts
https://finance.yahoo.com/economy/live/stock-market-today-nasdaq-sp-500-fall-as-global-chip-sell-off-spurs-ai-doubts-230258084.html - Yahoo Finance – Big Tech is dragging the S&P 500 lower in June
https://finance.yahoo.com/video/big-tech-is-dragging-the-sp-500-lower-in-june-193121554.html - The Street – Stock Market Today (June 25, 2026): Mag7 falls after Apple…
https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-june-25-2026 - Investopedia – Stock Market Today: Nasdaq slips as Micron earnings revive…
https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-06252026-12006401 - Trading Economics – United States Stock Market Index (US500)
https://tradingeconomics.com/united-states/stock-market - Saxo Bank – Market Quick Take – 25 June 2026
https://www.home.saxo/en-mena/content/articles/macro/market-quick-take—25-june-2026-25062026 - ATFX – Daily Market Highlight (June 25, 2026)
https://www.atfx.com/en/analysis/market-news/20260625-daily-market-highlight
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