{"id":31001,"date":"2026-07-22T21:34:49","date_gmt":"2026-07-22T21:34:49","guid":{"rendered":"https:\/\/caledonia.es\/?p=31001"},"modified":"2026-07-22T21:39:08","modified_gmt":"2026-07-22T21:39:08","slug":"weekly-market-pulse-5","status":"publish","type":"post","link":"https:\/\/caledonia.es\/en\/weekly-market-pulse-5\/","title":{"rendered":"Weekly Market Pulse\u00a0"},"content":{"rendered":"\n

June 09 2026<\/strong><\/h1>\n\n\n\n
Market Movement<\/strong>
Last week, the S&P 500 dropped 2.59% to close at 7,384 points, breaking a nine-week winning streak. The index is still up 7.86% for the year, and the market consensus puts the average target at 7,625 by the end of 2026 (+3.3%). Long-term US 10-year Treasury yields climbed 10 basis points to 4.53%, remaining elevated. The DXY dollar index strengthened by 1.1% to 100.1. The VIX jumped 25% to trade around 20, which is higher than the average we have seen in recent years. Given these levels, we expect volatility to pick up in the short term.
The broader market drop was driven by Consumer Discretionary (-6.2%), Technology (-5.4%), and Communication Services (-3.9%). Meanwhile, the market stayed optimistic about the US and Iran negotiations, pushing oil prices up 2% for the week to around $90 a barrel.
On the jobs front, May employment data beat expectations. The economy added 172,000 jobs compared to the consensus of 88,000, while the unemployment rate came in right on target at 4.3%. Looking ahead, May inflation numbers come out this Wednesday, June 10. The expectation is a 0.5% monthly increase, an annual rate of 4.2%, and core inflation at 2.9%. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Analysis & Outlook<\/strong>
In the bond market, the spread between Investment Grade bonds and Treasuries widened. We expect this to continue in the near term, so it makes more sense to position in interest rate instruments rather than credit right now.
Given this backdrop, the market is adjusting its expectations for the Fed’s rate path in 2026. The consensus now points to a 25 basis point hike in December, bringing the year-end rate to 4%. This shift shows up in the higher long-term interest rates and the recent stock market pullback. Right now, the S&P 500 P\/E valuation sits at 18.9x, which is just below its five-year average of 19x.
With the risk of an economic slowdown and potential recession fading, we are stepping into an environment with more uncertainty and volatility around interest rates. Even so, after last week’s correction, valuations still look reasonable and offer a solid medium-term opportunity. We recommend targeting high-quality sectors with strong balance sheets to navigate the current environment. We specifically like semiconductors, technology, banks, and industrials.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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    June 09 2026 Market MovementLast week, the S&P 500 dropped 2.59% to close at 7,384 points, breaking a nine-week winning streak. The index is still up 7.86% for the year,…<\/p>\n","protected":false},"author":2,"featured_media":31003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts\/31001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/comments?post=31001"}],"version-history":[{"count":2,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts\/31001\/revisions"}],"predecessor-version":[{"id":31008,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts\/31001\/revisions\/31008"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/media\/31003"}],"wp:attachment":[{"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/media?parent=31001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/categories?post=31001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/tags?post=31001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}