It was a tense session yesterday, yet even when “bad” news was hitting the wire, the market held up nicely, which tells me many folks are on the sidelines, champing at the bit.

Robotaxi received a lot of negative press, but Tesla (TSLA) soared and carried Consumer Discretionary (XLY) along for the ride. The stablecoin story carried higher shares of Fiserv Inc (FI).

Heat Map & Market Breadth

It was a sweet-looking heat map with lots of green on the screen, except for that red patch of Energy (XLE) and oil producers.

It’s a shame that so many spent the entire weekend becoming experts on the Strait of Hormuz, and now it doesn’t matter.

Here’s the rub – it was never going to matter.

However, “Mag Seven” still struggles to rally as a unit, as Amazon (AMZN) and Google (GOOG/L) stumbled into the red.

At close to 80% of the S&P 500 (SPX) names closed in the plus column.

The S&P 500 remains on the cusp of making new all-time highs.

Advancers dwarfed the New York Stock Exchange (NYSE) and NASDAQ Composite decliners, but the latter had more new lows than highs. Volume was light, but up volume came in higher than down volume.

The Fear Is Gone

The Volatility Index (VIX) finished the session below 20.0, a good psychological sign. There is not enough angst to counter the narrative; the market is giddy.

Factors

Large cap momentum took the lead, but green was across the board.  It's like going to a good diner in New Jersey; everything on the menu is good.

The Fed Pushed Back on Powell

Earlier in the session, Fed’s Michelle Bowman joined Chris Waller to support a July rate cut. Many think the two Trump appointees are jockeying for the next Fed chair. Later, Chicago Fed President Goolsbee also said there could be a cut.

There is no doubt that the Fed is suddenly becoming less hawkish.

More Fed speakers are on deck today:

Lower rates and yields will shake loose some of that $7.4 trillion in money markets.

Peace in the Middle East

After the close, President Trump posted great news about a ceasefire between Israel and Iran.

Today’s Session

The ceasefire is wobbly, but hanging in there after strong comments from President Trump.  Now all eyes on Jay Powell.

Jay Powell begins Humphrey Hawkins testimony today under intense criticism from President Trump. There are other observers, me included, that think the restrictive stance of the Fed is causing excessive harm to Main Street while enriching the wealthiest folks with high interest-bearing investments.

Meanwhile, the market keeps rocking, and we are getting close to new all-time highs.

Comments

Housing prices have an inherent 3 month lag. Prices are set at the opening of escrow but reported after the close of escrow. Housing cost deflation cometh. Powell is so behind the curve here. August Belmont on 6/24/2025 10:23:06 AM

Of course the Fed chief should be critiqued like anyone else so he can have opinions from all viewpoints to make rate decisions that benefits the country. DH on 6/24/2025 10:51:42 AM

If Powell wants to be a politician, then he should resign and run. Politicians are everywhere but leaders are scarce. Missed opportunity. Fran on 6/24/2025 11:25:20 AM

Let us all pray that the good people in Iran can prosper without their warlords (" religion " leaders) and goin the world again. John Cowger on 6/24/2025 12:07:15 PM

Powell is playing politics with the debt. Inflation is nonexistent. He cut rates to benefit Biden ! Michael Bennette on 6/24/2025 12:40:10 PM

Heavens to Betsy! I can criticize Jay Powell. Any rock musician can take advantage of a packed venue - as so many of them often do - to criticize Jay Powell (wouldn't that be a change!). You can criticize Jay Powell on TV. This is the USA. Patricia Flynn on 6/24/2025 5:12:56 PM

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