Major indices have shown an impressive display of resilience, as the S&P 500 and Dow Jones are sitting mostly higher, despite weakness across Technology stocks (XLK). The PHLX Semiconductor Index (SOX) has reversed with investors stepping in on the weakness, as the index reversed to -2.1% from -6% earlier.

Ten sectors are higher suggesting some of the selling across technology has resulted in rotation buying elsewhere. The Health Care sector (XLV) currently holds the widest gains led by its largest constituent, Eli Lilly (LLY). The Financial sector is the second best performer driven by strong gains from Goldman Sachs (GS) and American Express (AXP).

The 10-year yield (TNX) edged down, nearly reversing the 3 basis point increase recorded in the prior session. Yield prices are benefiting from a decline in oil prices.

Economic Data

Initial jobless claims edged up to the highest since February, while continuing claims sit around the lowest level since January 2024.

Challenger May announced job cuts up 3% YoY to 97,006, the highest May since 2020. Hiring plans remain subdued.

Technology announced 38,242 job cuts in May, the highest for the sector since August 2024. This was followed by Transportation (6,909), services (6,268), and fintech (5,731). Andy Challenger from Challenger, Gray & Christmas said, “On top of the headline AI story, we’re seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy.”

Spending on BofA cards (credit and debit) were +5.2% YoY in the week through May 30^th, declining from +5.4%. Gains continue to be led by electronics, up +19.1% followed by airlines and general merchandise both up over 6%.