Wednesday - July 1, 2026

Brian Szytel recaps a down, rotation-driven market day from West Palm Beach, with the Dow near flat, the S&P 500 slightly lower, and the Nasdaq weaker amid a sharp semiconductor sell-off (down 5–10%) even as some software and communication services names rose. He cites strong Korean AI chip export growth (70% year over year) but suggests investors may be pricing semis for perpetually outsized growth and reacting to signs of a peak growth rate. Inflation commentary helped rates ease slightly and the yield curve steepened marginally, though the 10-year Treasury ended around 4.48%. Economic data included ADP private payrolls at 98K (below expectations), ISM manufacturing at 53.3 (expansion), and weak construction spending, reflecting housing softness tied to higher rates. He previews a holiday-shortened week and Thursday’s nonfarm payrolls report.

00:00 Market Open Recap

00:24 Semis Selloff Explained

00:49 Korea Chip Demand Peak

01:34 Rates and Fed Talk

01:53 Index Closes and Yields

02:08 Economic Data Rundown

02:53 Housing Softness

03:31 Rotation and Small Caps

03:48 Jobs Report Preview

04:28 Wrap Up and Sign Off

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com