US stocks: Nasdaq slides before PCE inflation, June 24, 2026
June 24, 2026
Wall Street had a brutal session Tuesday. The Nasdaq lost 2.21% to 25,587 and the S&P 500 1.44% to 7,365, weighed down by semiconductors and by a Bank of America note that shuts the door on rate cuts. Two days before the PCE inflation report, the market is shifting firmly into defensive mode.
Chips derail the index
Semiconductors took the brunt of the damage. The rout started in Asia overnight, where chip names tumbled, before spreading to US futures. Micron plunged 11.4% ahead of its earnings on Wednesday evening, even though the stock was still up more than 300% for the year. The VanEck Semiconductor ETF dropped 6.5%. That alone was enough to derail the Nasdaq. The Dow Jones held its loss to 0.09% at 51,667, supported by defensive names in a clear rotation out of tech.
BofA shuts the door on rate cuts
The real trigger came from research. Bank of America published a note that flips its scenario. The bank now expects three hikes of 25 basis points by the end of 2026, in September, October and December, and no easing before 2028. The reason is inflation. BofA raised its 2026 PCE forecast to 3.6%, from 2.7%, and its core PCE to 3.3%. The shift follows a hotter inflation outlook and a resilient labour market, with the Fed seen having little room to ease under its new chair. Markets had entered the week still pricing at least one cut. The Fed holds its policy rate between 3.50% and 3.75% and now looks boxed in. TheStreet called the note the through line of the session. For traders the message is plain, the cost of carrying risk just went up.
The dollar crushes gold and currencies
The prospect of higher rates for longer pushed the greenback to its strongest level in more than a year. The euro fell to $1.1379, its lowest since June 2025. Sterling fared worse, below $1.33, amid the resignation of Prime Minister Keir Starmer. Gold gave way too. The metal suffered its Black Tuesday, slipping below $4,100 under the weight of a strong dollar and higher real yields. Oil sits at three month lows, Brent near $77 and WTI around $73, as tension between Washington and Tehran eases.
Crypto fails as a haven
Bitcoin slid toward $62,300, down 2.5%, and ether shed more than 4% below $1,700. More than $714 million in positions were liquidated in twenty four hours. Traders also pointed to ETF outflows and heavy SpaceX IPO demand pulling liquidity from digital assets. The crypto Fear & Greed Index remains stuck at 23, in extreme fear. Risk-off is broad, even if the VIX rose only modestly to 17.28, far from panic levels.
Key levels today
| Instrument | Level / Price | Change | Watch |
|---|---|---|---|
| S&P 500 | 7,365 | -1.44% | Support at 7,300 |
| Nasdaq Composite | 25,587 | -2.21% | Chip rebound |
| Dow Jones | 51,667 | -0.09% | Defensive rotation |
| EUR/USD | 1.1379 | -0.43% | June 2025 floor |
| VIX | 17.28 | +3% | The 20 mark |
Economic calendar
May new home sales at 10:00 a.m. ET. Fed stress test results for 32 banks at 4:00 p.m. ET. Thursday, May PCE at 8:30 a.m. ET, seen at 4.1% year over year on the headline measure according to Wells Fargo.
The bottom line
The market is pricing out a dovish Fed. Everything turns on Thursday's PCE, which will confirm or reject the case for hikes. Follow the next sessions on our market feed.
This is not investment advice. For informational purposes only.