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June 2026 Newsletter Thumbnail

June 2026 Newsletter

Insights

A Reminder from Financial History

During the South Sea Bubble (one of history’s first major stock market declines in the early 1700s), Isaac Newton reportedly said he could “calculate the motions of the heavenly bodies, but not the madness of people.” More than 300 years later, investors are still wrestling with the same challenge. Markets this June are being pulled between excitement over artificial intelligence and concerns about inflation, interest rates, and geopolitical uncertainty. The result has been a market environment that feels optimistic one day and cautious the next.

https://www.nypl.org/events/exhibitions/galleries/empire-imagination/item/11057

Markets Pause After a Strong Start

After a powerful rally earlier this year, U.S. stocks have experienced a modest increase in volatility in recent weeks. Much of the market’s strength has continued to come from large technology and semiconductor companies benefiting from significant investment in artificial intelligence infrastructure and cloud computing. While stronger-than-expected economic data briefly caused investors to reassess how quickly the Federal Reserve may begin lowering interest rates, markets have generally responded in an orderly manner.

The U.S. economy added approximately 172,000 jobs in May, significantly above expectations of roughly 185,000, while average hourly earnings increased 4.1% year-over-year. Strong labor market data reinforced confidence that the economy continues to perform well despite higher borrowing costs. Following the report, the 10-year U.S. Treasury yield moved above 4.4%, creating some temporary pressure on growth-oriented sectors that tend to be more sensitive to interest rates.

Technology and semiconductor stocks experienced a short-term pullback during the first week of June, with the Philadelphia Semiconductor Index (SOX) declining nearly 10% from recent highs before stabilizing. Corporate earnings expectations for many large technology companies remain strong, particularly among firms tied to AI infrastructure, cloud services, and semiconductor demand.

https://www.reuters.com/business/global-markets-selloff-instant-view-2026-06-08/?utm

Economic Resilience Continues

Although some firms, including Goldman Sachs, have pushed expectations for the first Federal Reserve rate cut further into the future, markets have generally interpreted this as a reflection of economic strength rather than economic weakness. Reuters recently reported that Goldman Sachs now expects the first Fed rate cut to occur in 2027 following stronger-than-expected labor market data and persistent inflation concerns. Higher Treasury yields have created occasional market volatility, with the 10-year U.S. Treasury yield recently moving above 4.4%, but investors have largely viewed those higher yields as evidence that economic growth and consumer demand remain intact rather than signs of significant economic deterioration.

https://www.reuters.com/business/goldman-sachs-pushes-fed-rate-cut-call-2027-strong-us-jobs-data-2026-06-08/?utm

In addition, the U.S. economy has remained more durable than many analysts anticipated entering the year. Consumer spending has continued to support economic growth, with U.S. retail sales rising approximately 3.0% year-over-year through the spring despite elevated borrowing costs and persistent inflation pressures. At the same time, the labor market has remained healthy, helping sustain household spending and broader economic activity. The economy added approximately 272,000 jobs in May, while the unemployment rate remained historically low at 4.0% (Department of Labor).

While inflation pressures have not fully disappeared, recent data suggests the economy continues to adjust without a meaningful slowdown in growth. Core inflation has moderated from its peak levels in prior years, even as overall economic activity remains relatively stable. First-quarter corporate earnings also came in stronger than expected across several sectors, particularly in technology and communication services, reinforcing investor confidence in the broader economic backdrop.

https://ca.marketscreener.com/news/fed-s-warsh-inherits-economy-increasingly-squeezed-by-inflation-ce7f5ddfd08aff23?utm

For long-term investors, June has served as an important reminder that markets do not move in straight lines — but periods of uncertainty can often coexist with strong underlying economic and corporate fundamentals.

 Times Change and so do Companies 

Below is a list of the top 10 companies from 2010 vs 2026. The S&P 500's largest companies have transitioned from being led by energy, industrial, and consumer-staples giants in 2010 to being dominated by technology, artificial intelligence, cloud computing, and innovative healthcare companies in 2026.

The top 10 S&P 500 stocks by market cap at the beginning of 2010 included:

 

  1. ExxonMobil (~$314 billion)
  2. Microsoft (~$260 billion)
  3. Apple (~$209 billion)
  4. Walmart (~$208 billion)
  5. Berkshire Hathaway (~$200 billion)
  6. Johnson & Johnson
  7. Procter & Gamble
  8. JPMorgan Chase
  9. Chevron
  10. General Electric

The top 10 S&P 500 stocks by market cap at the beginning of 2026 included:

 

  1. Nvidia (NVDA): ≈ $3.5 - $3.7 trillion (7.0% - 7.4% index weight)
  2. Alphabet (GOOGL/GOOG): ≈ $3.9 trillion (6.4% index weight)
  3. Apple (AAPL): ≈ $3.4 - $4.4 trillion (5.9% - 6.4% index weight)
  4. Microsoft (MSFT): ≈ $3.0 - $3.1 trillion (4.5% - 5.3% index weight)
  5. Amazon (AMZN): ≈ $2.2 - $2.6 trillion (3.8% - 3.9% index weight)
  6. Broadcom (AVGO): ≈ $1.6 - $1.8 trillion (2.5% index weight)
  7. Meta Platforms (META): ≈ $1.5 trillion (2.5% index weight)
  8. Tesla (TSLA): ≈ $1.4 trillion (2.3% index weight)
  9. Berkshire Hathaway (BRK.A/B): ≈ $1.08 trillion (1.7% index weight)
  10. Eli Lilly & Co. (LLY): ≈ $880 billion (1.5% index weight)


S&P Dow Jones Indices. S&P 500 Historical Constituents & Market Capitalization (2010). Accessed June 2026. 

Bloomberg. “Top S&P 500 Companies by Market Capitalization.” Accessed June 2026. 

MacroTrends. “Largest Companies in the S&P 500 (2010).” https://www.macrotrends.net/

https://www.investing.com/news/world-news/us-proposes-additional-tariffs-on-imports-from-60-economies-over-forced-labor-4723286?utm