Mid-Morning Look: June 23, 2026

Mid-Morning Look

Tuesday, June 23, 2026

U.S. stock prices are tumbling on Tuesday, led by sharp declines in technology stocks as concerns about looming U.S. rate hikes and debt-backed corporate spending on AI weighed on investor sentiment. The weakness follows a sharp selloff in U.S. tech heavyweights in the previous session (GOOGL, META, MSFT, AMZN), driven by doubts over hyperscalers’ heavy AI spending, amid elevated valuations and high borrowing costs. This morning, semiconductors are joining the sell off after hitting record highs recently. Overnight ORCL announced jobs cuts of 21K or 13% of workforce and is preparing to raise up to $50b in new capital to fund AI infrastructure (two concerns for Wall Street with job impact due to AI and more spending). Recent mega IPO SpaceX (SPCX) shares are now down 4 straight days as the stock price falls below its opening print of $150 (and down from last week highs around $229 – recall it priced 555M shares at $135). The space company became the latest megacap to tap the bond market following a blockbuster IPO earlier this month. Tech weakness overseas and renewed geopolitical uncertainty are also weighing on global risk sentiment, sending futures lower as investors rotate into defensive assets. South Korea’s sharp equity selloff (Kospi fell -10% led by Samsung and SK Hynix declines) and continued questions surrounding the US-Iran framework have pushed the Nasdaq sharply lower while bonds and the Dollar catch safe-haven flows. The US dollar rises further, and Treasury yields remain elevated after last week’s FOMC meeting came across very hawkish with rising expectations of rate hikes.

• Software movers: another brutal day for the sector; ORCL shares fell after saying it plans to reduce its workforce by about 13%, or roughly 21,000 employees, in fiscal 2026 as part of a broad restructuring. Oracle is preparing to raise up to $50b in new capital to fund AI infrastructure, with more than half of its backlog estimated to be tied to OpenAI related commitments. ZETA shares bounced early after PLTR CEO said Zeta is using Ontology to build a “next generation marketing environment” that delivers the advantages of AI while protecting against many known risks.

• CAR +6%; said it reached a settlement agreement with Pentwater Capital Management to resolve its pending lawsuit seeking recovery of alleged short-swing profits under Section 16(b) of the Securities Exchange Act. Avis Budget Group is set to receive $650 million in a settlement agreement with Pentwater Capital Management
• IBM +4%; was upgraded from Neutral to Overweight at JP Morgan and raised tgt to $291 from $270 with greater confidence in a 2H26 CC software acceleration following a deeper look at IBMs software business. The company is about to lap tough comps from its recent z17 mainframe cycle, but this is well known and less relevant to long-term growth
• ZETA +9%; shares bounced early after PLTR CEO said Zeta is using Ontology to build a “next generation marketing environment” that delivers the advantages of AI while protecting against many known risks.

• CIEN -5%; seeing a pullback in optical stocks AAOI, GLW, LITE, COHR after outperforming Monday.
• ORCL -2%; plans to reduce its workforce by about 13%, or roughly 21,000 employees, in fiscal 2026 as part of a broad restructuring. Oracle is preparing to raise up to $50b in new capital to fund AI infrastructure, with more than half of its backlog estimated to be tied to OpenAI related commitments
• PRIM -36%; cut its full-year outlook, warning of Q2 headwinds in its renewables business, and said its chief operating officer left the company; now expects adjusted EPS between $2.05 and $2.60 vs the prior $4.80 to $5.00 range and expects lower revenue and gross profit for full-year in its renewables business; Cut in renewables business revenue estimate to $2.1 billion reflecting project delays, with the biggest earnings hit expected in Q2