Same buy-the-dip approach after last week’s changes

Briefing.com Summary:

*The market is poised to rebound at the open following last week’s losses.

*Semiconductor stocks and mega-cap stocks are ready to lead when the opening bell rings.

*Alphabet’s ‘A’ shares start trading today as part of the Dow Jones Industrial Average.

The more things change, the more they stay the same. Borrowing from that understanding, last week’s losses (change) have spurred a buy-the-dip effort (same) that has put a nice bid in the equity futures market this morning.

In turn, the U.S. and Iran traded military strikes over the weekend (change) only to make plans to come back to the negotiating table in Qatar tomorrow to work on securing a lasting peace agreement (same). The market likes the thought of the U.S. and Iran talking things out (same), as opposed to punching things out (change), so it throws both sides a little kibble. It is kind of silly, really, for the market to allow itself to keep being played like it is, but it is a game that participants seemingly just don’t want to quit.

Currently, the S&P 500 futures are up 63 points and are trading 0.8% above fair value, the Nasdaq 100 futures are up 338 points and are trading 1.2% above fair value, and the Dow Jones Industrial Average futures are up 257 points and are trading 0.6% above fair value.

The changes here are going to lead to a higher open that, for the time being, will feature the same leadership. Semiconductor stocks and mega-cap stocks are ready to ride.

Alphabet (GOOGL) is a focal point for the mega-cap cohort. It dropped 8.3% last week but is up 0.9% on an auspicious day in the company’s history. Alphabet’s ‘A’ shares are getting their start today as part of the Dow Jones Industrial Average. SpaceX (SPCX), meanwhile, will get its start as a Nasdaq 100 component prior to the open on July 7.

The recent struggles for the semiconductor stocks and mega-cap stocks, however, suggest that how they open isn’t as important as how they close. Market participants will be keenly interested to see if the early gains can be sustained or if they dissipate on month-end/quarter-end rebalancing activity or, perhaps, pure selling interest.

Today’s price action, then, will be its own catalyst. The S&P 500 closed just under its 50-day moving average (7,363) on Friday, so it is within reason to chalk up some of today’s early buying interest to technically driven buying interest.

For most, though, a gain is a gain is a gain, no matter the driver. This holiday-shortened week will have its drivers, too.

Oil prices will be one. They are up 1.0% to $70.00/bbl. Interest rates will be another. The 10-yr note yield is up one basis point to 4.38%. And then there is an economic calendar that features the June Consumer Confidence Index on Tuesday, the June ISM Manufacturing Index on Wednesday, and the June Employment Situation Report on Thursday.

The market will be closed Friday for Independence Day.

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Originally Posted June 29, 2026 – Same buy-the-dip approach after last week’s changes