Q2 2026 Market Updates

**SPEAKER_1** (0:01)
Welcome to the Money Tree Investing Podcast. Stock market, wealth, personal finance, value stocks. Invest in your life.

**Kirk Chisholm** (0:11)
Hello, smart money tree podcast listeners. Welcome to this week's show. My name is Kirk Chisholm. I'll be your host. And today, I guess I'm on unselloed because I don't know where the heck Doug is.
We might do an abbreviated one because I don't like talking to myself, but I want to at least put something out here. We're the week before the July 4th weekend, so things are a little light in the markets, and apparently with people, Doug must be out hunting or maybe a bear got him. But anyway, I'm not sure where he is. If he comes on midway, we'll dump him in. If not, hopefully, he has a good excuse next week. Anyway, as we kind of dive right in, today is the 26th of June, and markets are both interesting and a bit of a snooze. Summertime, things get a little light, the volume gets a little lighter, interest gets a little lighter, people start going on vacation. And while there's still stuff going on, obviously, there's a lot less interest in markets, and I think rightfully so. I think the markets have shown us this year that we're getting a lot of volatility, but it's not really going to a whole lot of places. I'm going to share with you what the market has done this week, some news and updates, and just kind of general thoughts on the market overall. So this is a visual. The size is based on market cap. The bigger the box, the bigger the market cap.
This is the S&P 500 So each box represents a company. Bigger the box, bigger the company. But if you look here overall, what you're seeing is the largest boxes are basically the MagZone. You got Apple, Microsoft, NVIDIA, you got Google, you got Amazon, you got Tesla, Meta. Now you got some semiconductors, obviously, that are doing better than the rest of the market. It's kind of interesting than Amacure. You got Micron, you got Broadcom, you got AMD, Intel. They're winning the show right now in the technology group. But if you look at some companies, look at Palantir, you got Oracle, not doing very well this past week, down double digits. You got a lot of companies actually down double digits. And I think it's probably not a bad idea that some wind comes out of the sales of technology. Just going too far, too fast, unsupported by the kind of growth that it would warrant for those kind of growth in the last six months. But the snoozer that's actually taken off in this past week is health care. Health care has really done well in the last week. If you look at this, just kind of share what's going on this year. We talked about last week where the markets are going, where they have been. So for the most part this year up to this point, technology has led the way almost exclusively. So the returns you've seen in the index have almost exclusively come from technology. Now, other sectors have been fine, but they're basically flat. They haven't really gone. They bounced around a lot, but they really haven't gone anywhere. They had some bump at the beginning of the year, but since then, they haven't really done anything.
The reason I'm showing this chart is to give you a flavor of some things that you want to watch out for. Some things we're watching out for is what we call a natural rotation. And a natural rotation is technology has led the way, and now technology is taking a back seat and not leading the way. I mean, the index today is more or less flat. Nasdaq is down, Russell is down, S&P is up like 88 basis points. It's basically flat. So if you look at that, what you're really seeing is technology. We need technology in order to have the index progress. But the whole rest of the market is filling the gap because of this huge sell-off in technology. At the same time, you're getting a run up in a lot of other areas, like in healthcare, it's a big one, utilities.
Regardless, what you're seeing is you're seeing a rotation. Financials are definitely doing okay in some areas, not all areas. So what you're seeing is a rotation. Now, rotation is actually healthy.
And this is the reason I'm going over this today is if you want to understand the direction of the market, you need to understand the market dynamics of how it works. Now, frequently in the last 15 years, technology has led the way exclusively.