Stock Rout Pauses, Europe Heat Wave Intensifies | The Pulse 6/24/2026

Summary

Markets stabilized after a tech-led selloff, with attention turning to Micron earnings and the AI trade. JPMorgan's Joyce Chang remained bullish on AI capex and U.S. equities, while forecasting lower oil and structurally higher bond yields. German business confidence improved slightly but the economy faces deep structural challenges. Holcim and Saint-Gobain CEOs predicted a recovery in European residential construction, and a severe European heat wave is straining power supplies.

• Equity markets steadied after a sharp tech selloff, with Micron earnings seen as a key test for AI sentiment.
• Joyce Chang of JPMorgan argued the AI capex story has further to run and that pullbacks are buying opportunities in semiconductors and data centers.
• Chang also highlighted buybacks and retail dip-buying as supportive for the broader U.S. equity market.
• She expects oil prices to face more downward pressure as OECD inventories hold up, Asian consumers adjust, and U.S.-Iran de-escalation talks progress.
• Chang sees structurally higher term premium pushing 10-year Treasury yields still higher.
• German Ifo business confidence remained subdued due to structural issues like high energy costs and Chinese competition, with GDP growth around 0.8% this year.
• Holcim and Saint-Gobain CEOs both forecast a strengthening recovery in European residential construction, citing housing shortages and rising permits.
• A record-breaking heat wave across Europe is spiking cooling demand while curbing nuclear and wind output, pushing day-ahead power prices to highs seen during the energy crisis.