Market review from UTEX — week 27

US indices closed the week in the red, with the SPY down 2.38% and the Nasdaq losing 4.6%. The technology sector led the declines: Arm Holdings -23%, Western Digital -21%, Oracle -19%, Seagate Technology -15%.

The main factor behind the giants' decline remains the same — investor concerns over inflated valuations and massive spending on AI infrastructure. The correction could have been even deeper if not for Micron's report. The memory chip maker significantly beat all analyst expectations due to explosive demand for DRAM and NAND memory.

Unexpectedly, pharmaceutical stocks also supported the market: AbbVie +17%, Merck & Co +13%, Johnson & Johnson +11%, Eli Lilly +10%.

Bitcoin is trading around $60,000, but no rebound or serious buying from these levels is visible yet.

Over the weekend, the situation around the Strait of Hormuz escalated sharply. The U.S. violated the first clause of the Islamabad ceasefire memorandum.

The coming week will be shortened. U.S. Independence Day falls on Saturday, so markets will be closed on Friday.

On Thursday, unemployment data will be released. Some economists believe the labor market has overcome the stagnation with low hiring and employment levels that characterized most of 2025 and early 2026. Labor market statistics and rising inflation fuel speculation about a possible rate hike. At least half of the Fed's board members expect a hike this year.

The most interesting reports this week: Constellation Brands, Nike, General Mills, FactSet, MSC Industrial Direct, UniFirst.

Top trading ideas for this week

🟡 Nike (NKE). Report on June 30 after market close. Last Friday, KeyBanc analysts downgraded Nike due to a slowing recovery, problems in China, leadership uncertainty, and guidance below consensus. Other experts also lowered their recommendations on NKE in June. Despite this, prices look very attractive given the company's brand and status. The stock last traded at $40 in 2014. We're not suggesting going all in, but it's worth a look for the long term. This isn't a play for unexpected moves, but it's interesting as an investment. Prices might get even better after the report.

🟡 General Mills (GIS). Report on July 1 before market open. One of the world's largest food producers. Another real‑sector company with decent dividends around 6%. Down 22% over six months, but up 7% over the last week. More of a long‑term dividend story — the stock moves slowly.

🔴 Crypto stocks: Strategy, Coinbase, BitMine. A very dangerous situation for Bitcoin — no bounce from $60,000 has materialised yet, and a small market trigger could be enough for serious sell‑offs. We expect elevated volatility in crypto stocks over the next 1–2 weeks.

🔴 Space stocks: Intuitive Machines, AST SpaceMobile, Rocket Lab, Planet Labs, Tema Space Innovators ETF. Over the past month, nearly all space companies have dropped 40–50%. We're not urging you to jump in, but it's worth watching which ones are holding up better than the market — prices look fairly attractive for the medium term.

🔴 AeroVironment (AVAV). Report on June 29 after market close. A manufacturer of drones, counter‑drone systems, and high‑altitude space platforms. The company is a key supplier to the Pentagon and allied governments. A gap after the report and strong intraday moves are highly likely.

Choose what suits you best:

🟡 Medium risk, for traders with some experience;

🔴 High risk, for professionals.

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