{"id":31010,"date":"2026-07-22T21:43:09","date_gmt":"2026-07-22T21:43:09","guid":{"rendered":"https:\/\/caledonia.es\/?p=31010"},"modified":"2026-07-22T21:43:11","modified_gmt":"2026-07-22T21:43:11","slug":"weekly-market-pulse","status":"publish","type":"post","link":"https:\/\/caledonia.es\/en\/weekly-market-pulse\/","title":{"rendered":"Weekly Market Pulse"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><strong>June 22 2026<\/strong><\/h1>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Market Movement<\/strong><br>Last week, the S&amp;P 500 went up 1.44%, closing at 7,500.58 points and bringing its year-to-date gain to 9.57%. Market consensus sets an average target price of 7,625 by the end of 2026 (+1.65%). Yields on 10-year US Treasury bonds rose 5 basis points to end at 4.49%. The DXY closed at 100.96. The VIX dropped 0.90%, trading around 17.50. From these levels, we still expect volatility to pick up in the near term.<br>The market kept moving forward, led by the Technology (+3.44%) and Industrials (+3.23%) sectors. At the same time, investor sentiment improved after the ceasefire agreement between Israel and Iran, which helped ease geopolitical worries. In the US, the Federal Reserve kept interest rates steady but maintained a hawkish tone. This caused markets to dial back their expectations for short-term rate cuts. This week, investors will be watching PMI data, consumer confidence, and Friday&#8217;s PCE inflation report for more clues on where monetary policy is heading.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Analysis &amp; Outlook<\/strong><br>In the fixed-income market, the spread between investment-grade bonds and Treasuries widened. We expect this trend to continue in the short term, so it makes more sense to hold interest-rate instruments rather than credit right now.<br>Given this setup, the market has been rethinking where the Fed&#8217;s interest rates will go through 2026. Specifically, it now anticipates two 25-basis-point hikes in September and December, putting rates in the 4.00% to 4.25% range by year-end. This shift in expectations showed up in higher long-term interest rates. Meanwhile, the SPX price-to-earnings ratio sits at 19.02x, right in line with its 5-year average.<br>With the risks of an economic slowdown or recession fading, we are entering a period of higher uncertainty and interest rate volatility. However, after last week&#8217;s correction following nine straight weeks of gains, valuations are still reasonable and present a good medium-term opportunity. Because of this, we recommend sticking to high-quality sectors with strong balance sheets to navigate the current environment. We particularly highlight semiconductors, technology, banking, and industrials.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n    <div class=\"xs_social_share_widget xs_share_url after_content \t\tmain_content  wslu-style-1 wslu-share-box-shaped wslu-fill-colored wslu-none wslu-share-horizontal wslu-theme-font-no wslu-main_content\">\n\n\t\t\n        <ul>\n\t\t\t        <\/ul>\n    <\/div> \n","protected":false},"excerpt":{"rendered":"<p>June 22 2026 Market MovementLast week, the S&amp;P 500 went up 1.44%, closing at 7,500.58 points and bringing its year-to-date gain to 9.57%. Market consensus sets an average target price&hellip;<\/p>\n","protected":false},"author":2,"featured_media":31011,"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-31010","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\/31010","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=31010"}],"version-history":[{"count":1,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts\/31010\/revisions"}],"predecessor-version":[{"id":31012,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/posts\/31010\/revisions\/31012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/media\/31011"}],"wp:attachment":[{"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/media?parent=31010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/categories?post=31010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/caledonia.es\/en\/wp-json\/wp\/v2\/tags?post=31010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}