Quick overview

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The S&P 500  experienced a noticeable leg down during yesterday’s session, closing lower as macro anxieties and an unwinding AI trade continued to pressure the broader index.

 The index has been trading with defensive undertones ever since the June 17 Federal Reserve meeting. While interest rates were held steady at 3.50%–3.75%, a surprise shift in the dot plot showed nine out of 18 officials now projecting at least one more rate hike later this year. Markets have been adjusting to this tighter-for-longer outlook.

Momentum in mega-cap technology has cooled significantly, with heavy trading on Amazon and Alphabet amid heightened scrutiny over their massive AI capital expenditures. The broader index felt the weight of these multi-day single-name corrections.

:Technicians are closely watching the 7,334 support zone (the post-FOMC swing low). A decisive breakdown past that level could expose the index to a deeper correction toward the psychological 7,000 line, while any recovery attempt will run into immediate moving-average resistance between 7,469 and 7,491.

All eyes are on Micron’s Q3 earnings report dropping after today’s closing bell (Wednesday, June 24). Because semiconductor names have single-handedly carried a massive chunk of the S&P 500’s year-to-date performance, Micron’s high-bandwidth memory guidance is being treated as the ultimate litmus test for the health of the AI infrastructure cycle. Additionally, the core PCE (Personal Consumption Expenditures) price index data looming at the end of the week will likely solidify the market’s next macro direction.