Market review from UTEX — week 26

Major US indices fell slightly over the week: SPY lost 1.57%, Nasdaq lost 1.28%.

Last Tuesday, the US Senate voted to pass the GENIUS Act. Circle Internet Group, the issuer of USDC, gained 125%! Coinbase rose 27%. Advanced Micro Devices continues to grow: +8% for the week and almost +20% for the quarter.

Among the declines, we highlight Chime Financial — the company went public on June 12 and lost 20% for the week. Mastercard -9%, Visa -8% on concerns that the GENIUS Act will affect their profits. 

Musk announced that Tesla launched a robotaxi in Austin on Sunday with a fixed fare of $4.20. Waiting for the first results.

The Fed left rates unchanged, but forecasts have worsened. Inflation is now estimated at 3% by the end of 2025, compared to 2.7% in the March forecast. In 2026, it is estimated at 2.4%, compared to 2.2% previously. In 2027, it is estimated at 2.1%, instead of 2%. Forecasts for GDP growth in 2025 and 2026 have also declined, but remain unchanged for 2027. According to Powell, this year's tariff increases are likely to lead to higher prices and put pressure on the economy.

On Sunday, the US Air Force launched strikes against Iran. Iran is trying to block the Strait of Hormuz, through which up to 30% of the world's LNG supplies and up to 20% of global oil exports pass, which could drive up oil prices.

Amid this news, Bitcoin fell below the $100,000 mark, above which it had been trading since May 8. BTC is now worth $101 500.

This week, Jerome Powell will speak in the Senate on Wednesday, and on Thursday, the final US GDP data for the first quarter will be released. On Friday, the PCE, the Fed's favorite inflation indicator, will be published. But, apparently, the market's attention will be focused on the situation in the Middle East.

Top 5 ideas for trading this week

🟡 Major US oil companies: ExxonMobil (XOM), Chevron (CVX), ConocoPhillips (COP). The closure of the Strait of Hormuz, if it happens, could cause oil prices to skyrocket, and volatility in the sector will increase significantly. 

🔴 FedEx (FDX). Report on June 24 after closing. FedEx is almost always a gap + intraday movement. For fans of expensive stocks.

🟡 Nike (NKE). Report on June 26 after closing. Really interesting: like many sporting goods retailers, NKE fell on tariffs news. Although even before that, things weren't going very well for it. But it looks very tempting for the mid-term with support at $52.50. At the end of 2021, the stock was $180, and now it's $59. Not bad, it seems.

🟡 Carnival (CCL). Report on June 24 before the opening. A cruise company that has been hit hard by Covid-19. Its competitor, Royal Caribbean, has grown 13 times since 2020. Meanwhile, Carnival has been dealing with its problems and is still far from its pre-Covid highs of $72. Mid-term.

🔴 Micron Technology (MU). Report on June 25 after closing. Chipmaker. On April 7, stocks were $61, and today they are worth $123, +100% in 2.5 months. A very difficult company for intraday trading, but often volatile. As for the mid-term, it is better to take a position on pullbacks. But it is still unclear whether there will be a pullback this time.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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