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US Equity Investors to Watch Out for Big-Tech Performance This Week While Awaiting Nonfarm Payrolls, Warsh's Speech

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US equity investors will focus this week on the performance of Big-Tech shares amid nonfarm payrolls, Federal Reserve Chair Kevin Warsh's speech, and crude oil prices.

* Last week on Friday, the Nasdaq Composite closed at about 25,297.62, down from 26,517.93 a week earlier, a decline of about 4.8%. All Magnificent-7 stocks ended the week lower, hitting the Nasdaq disproportionately compared with the S&P 500 and the Dow Jones Industrial Average, according to data compiled by Finviz. The three worst-performing stocks among companies with a market capitalization above $200 billion were Arm (ARM), Western Digital (WDC), and Oracle (ORCL), the data showed.

* After an inflation report last week showed the personal consumption expenditures, or PCE, price index grew at the fastest pace since April 2023 on an annual basis in May, investors will watch nonfarm payrolls to gauge the state of the labor market and its potential impact on policy under the newly minted Warsh. Other macroeconomic data likely to garner attention includes ISM manufacturing, JOLTS job openings, and initial jobless claims.

* Chair Warsh is expected to deliver a speech on Wednesday, which will be parsed closely for his views on last week's inflation print. Following the Fed's monetary policy meeting in June, the CME FedWatch tool shows a 41% probability that the target rate for fed funds will be in the 3.75% to 4% range from 3.5% to 3.75%. There is 29% likelihood the Fed will raise rates twice by 25 basis points each, as Warsh seemed to lean hawkish at the press briefing following the policy announcement.

* The front-month West Texas Intermediate crude oil futures stood at $69.98 early Monday, trading close to levels seen around the beginning of the attack on Iran. The US and Iran will "stand down for now," a Trump administration official said after both sides traded fire near the Strait of Hormuz, CNN reported. Technical talks with Iran remain "on track," a US official told CNN.

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US Equity Indexes Mixed, Mag-7 Lags Amid Micron Technology's Blockbuster Quarterly Results This Week

US equity indexes were mixed as a decline in technology hit tech-heavy gauges, outweighing a lift in sentiment from maritime traffic slowly returning to the Strait of Hormuz, the chokepoint for about a fifth of global energy flows.* The S&P 500 closed at 7,354.02 on Friday versus 7,500.58 a week ago. The Nasdaq Composite stood at about 25,297.62, compared with 26,517.93 a week earlier. The Dow Jones Industrial Average ended at 51,876.11, versus 51,564.70 at the end of last week.* Technology, consumer cyclicals, and communications services were among the bottom five sectors over the past week, according to data compiled by Finviz. Healthcare, utilities, and real estate were the top gainers.* The so-called Magnificent-7 stocks ended the week lower. Shares of Apple (AAPL), one of the Mag-7 stocks, slumped after the company raised prices of its iPads and MacBooks amid surging memory costs. Micron Technology (MU) shares surged even though its blockbuster fiscal Q3 results, fueled by strong demand for memory, failed to trigger a rally in the sector.* West Texas Intermediate crude oil futures slumped 3.5% to $69.47 late Friday, hovering at levels seen around the beginning of the Iran war as maritime traffic continued to pass through the Strait of Hormuz, the chokepoint for about a fifth of global energy flows.* The 10-year US Treasury yield, which traded around 4.67% last month, declined to 4.37% late on Friday and was also lower from 4.45% a week ago.* "While we have heard from a number of Fed officials increasingly willing to consider a higher level of rates, as the latest June dot plot shows, the Committee is clearly divided, with essentially the other half viewing policy as in exactly the right spot and anticipating no additional change this year," Stifel Chief Economist Lindsey Piegza said in a note, referring to impact of supply-push crude oil on elevated headline and core personal consumption expenditures, PCE, price index readings for May.

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Update: Technology Helps Push US Equity Indexes Lower; Israel-Lebanon Sign 'Framework Agreement'

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