Stocks closed mixed yesterday with the tech-heavy Nasdaq and S&P 500 giving up -1.32% and -0.37% respectively. The Dow, however, was up 0.29%. And the small-cap Russell 2000 and the mid-cap S&P 400 led the way, once again, with 0.83% and 0.40%. And it should be noted that the Russell made a new all-time high in the process.

YTD, the Dow is up 7.59%; the S&P 500 is up 9.16%; the Nasdaq is up 12.6%; the S&P 400 is up 15.2%; and the Russell is up a whopping 21.1%. Wow!

While we are in the midst of an AI boom. We are also in the midst of a small-cap renaissance. (Mid-cap too.)

I should also note that biotech stocks are breaking out as well. (FYI ? biotech stocks are dominated by small-caps and mid-caps.)

In other news, progress on U.S.-Iran peace talks (Memorandum of Understanding or MOU) was reportedly made in Switzerland. But the incendiary rhetoric continues, even while negotiations appear to be yielding incremental results.

Crude oil gained 0.94% yesterday. But is down -32.2% from it's conflict high made April. And is only up 14.2% since the war began.

Last week's FOMC Announcement suggested a possible rate hike later this year.

But with the war ending and energy prices falling, that does cast doubt on whether that will happen or not.

Moreover, it should be noted that the Fed's Summary of Economic Projections (SEP) was still forecasting rate cuts to resume in 2027.

Although, it may come sooner, if oil continues its retreat. (Oil has been the biggest contributor to the recent uptick in inflation.)

We'll get another look at inflation on Thursday, 6/25, with the Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge.

The third and final estimate for Q1'26 GDP is also on tap for this week (6/25).

Not much in the way of economic reports yesterday.

But today we'll get the PMI Composite report, and the Richmond Fed Manufacturing Index.

And tomorrow (Wednesday, 6/24), we'll hear from AI bellwether Micron, when they report earnings after the close.

Should be a busy week.

See you tomorrow,