Good morning. After Monday's record and Tuesday's pullback, the market gets its next big cue this afternoon: the Fed's June meeting minutes. Meanwhile, oil keeps climbing on Iran tensions, and the chip stocks are still shaky.
The Market Gauge
Tuesday's close, a pullback from Monday's record:
S&P 500: 7,503.85 (-0.45%)
Nasdaq: 25,818.69 (-1.16%)
Dow: 52,925.15 (-0.25%)
The Nasdaq led the way down as Monday's chip winners, Micron and Sandisk, sold off on renewed AI worries out of Samsung. But money did not leave the market, it rotated: pharmaceutical names like Eli Lilly and Dow member IBM climbed, and energy caught a bid as oil rose on the Iran news.
Beginner note: that shift has a name, rotation. When leadership moves from one group (chips) into others (defensives, energy), the market is not necessarily weakening, it is changing its mind about where the growth is. Tracking which groups gain strength and which lose it is one of the most useful habits you can build.
On today's calendar
Fed minutes, 2:00 PM ET. The detailed notes from the Fed's June meeting, when it held interest rates at 3.50% to 3.75%. Traders read them closely for clues about the next rate move. Why it matters: interest rates ripple through everything, lower rates tend to lift stocks (especially fast-growers), higher-for-longer tends to pressure them. Expect a possible jump in volatility right at 2 PM.
Oil and Iran. Escalating U.S.-Iran tensions keep pushing oil prices higher, which lifts energy stocks and pressures companies that get squeezed by fuel costs. Watch whether the move extends or cools.
Chips still on watch. After Samsung's soft read sank Micron and Sandisk on Tuesday, the question today is whether the chip selloff stabilizes or deepens.
On the radar: Exxon Mobil
$XOM ( ▼ 0.4% ), one of the largest oil companies in the world, jumped about 3.85% on Tuesday to roughly $141.69, even as the broader market fell. When geopolitics push oil prices up, that extra money flows almost directly to the producers who sell it, so energy stocks tend to move together on days like this.
Why it's worth watching: this is sector rotation caught in the act. A clear catalyst, rising tensions and rising oil, sends money into the group that benefits, often quickly. The question today is whether energy holds its new leadership, or gives it back if tensions ease. Learning to spot a whole sector move on real news, and asking whether the move has staying power, is one of the cleanest skills a beginner can build.
ONE FOR THE ROAD
Before 2 PM: do the Fed's minutes read more like cuts are coming, or higher for longer? Reply with your call. Following the Fed is a skill worth starting early, and today is a good day to practice.
Educational content only. Not financial advice. Past performance does not predict future results. Read the full financial disclosure.