Quick overview

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The Dow Jones Industrial Average (DJIA) locked in its final numbers for the week on Thursday afternoon, closing at 51,564.70. Wall Street took an early Friday holiday for Juneteenth, meaning the stock exchanges were completely closed. The market is on pause at these levels until Sunday night futures and Monday morning trading resume

The Dow is clinging heavily to its 51,500 baseline. If the reality of a hawkish Fed sets in when trading opens on Monday, analysts expect immediate structural support to form lower, closer to 50,800.

The Dow spent the latter half of the week wrestling with the Federal Reserve’s massive pivot. New Fed Chair Kevin Warsh shocked equities by deleting the central bank’s easing bias, upgrading the inflation forecast to 3.6%, and signaling that the Fed’s next logical move is an interest rate hike rather than a cut.

The Dow initially hemorrhaged nearly 500 points on that news but clawed back to flat by Thursday’s close as investors stabilized.

The reason the Dow managed to finish the week in the green—despite the brutal headwind of higher interest rates—was an absolute explosion in mega-cap technology and semiconductor components. Intel surged 10.6% following an announcement of a massive chip-manufacturing partnership with Apple.

Nvidia (+3.0%) and Micron also fueled a 6.4% run in the broader semiconductor space, which dragged the heavily weighted tech names in the Dow across the finish line.

On the macro front, oil prices eased back down to the mid-$70s after a memorandum of understanding (MOU) began restoring shipping traffic through the Strait of Hormuz. This eased energy-driven inflation anxieties but slammed big energy stocks like Chevron.

Furthermore, corporate Dow heavyweights like Accenture plummeted 18.0% after cutting the top end of their revenue guidance, warning the market that enterprise IT consulting spending is stalling.