June 13, 2026 Market Update

Market Recap: The Song Remains The Same

Despite a sharp selloff in technology and semiconductor stocks just one week earlier, the major stock market indexes managed to finish the week higher as investors turned their attention to SpaceX's highly anticipated IPO. The stock surged 19% on its first day of trading, helping reignite enthusiasm for growth stocks even as some analysts questioned the company's $2.1 trillion valuation.

The 2-year U.S. Treasury yield closed above 4% as fixed-income investors reacted to Wednesday's inflation report, which showed consumer prices rising 4.2% over the past year. However, a closer look at the data revealed that a surge in energy costs was responsible for much of the increase, while core CPI—which excludes food and energy—remained far more stable at 2.9% year over year.

While growth stocks once again took center stage this week, the drivers of long-term market performance remain largely unchanged. Corporate earnings, inflation, interest rates, and geopolitical stability will likely determine how much longer the current market rally can continue.

Market Performance

Market Commentary: Not All Inflation Is Created Equal

Wednesday's inflation report received plenty of attention from the mainstream media, but far less attention was paid to what was actually driving the increase. Inflation driven by higher energy costs tends to be different from inflation driven by strong consumer demand, rising wages, or widespread price increases across the economy.

• While geopolitical tensions have pushed energy prices higher, those pressures have begun to ease as concerns about shipping through the Strait of Hormuz subside.
• Price increases have become far less widespread across the economy than they were during the inflation surge of 2022, suggesting inflationary pressures are no longer as deeply embedded.
• Core inflation rates, which exclude volatile food and energy prices, have been more stable. As a result, the Federal Reserve is less likely to raise rates in response.
• Many of the factors that fueled the inflation surge of 2022—including supply chain disruptions and extraordinary pandemic-era stimulus—have largely faded.

Higher prices undoubtedly affect consumer spending, and policymakers will continue to monitor inflation closely. But investors should look beyond the headline number and consider what is driving price increases before making changes to their investments.

In Case You Missed It: SpaceX Employees’ Fortunes Skyrocket

SpaceX's long-awaited IPO turned thousands of current and former employees into millionaires overnight. At a valuation approaching $1.8 trillion, analysts estimate the offering created roughly 4,000 new millionaires.