HOTLINE
Hotline Archive
June 12, 2026
This is John Bonnanzio with a Fidelity Monitor & Insight Hotline update for Friday evening, June 12.
There are no model portfolio trades advised.
Investors kept their on eyes on two things this week: the U.S. war with Iran and the unprecedentedly large initial public offering of Elon Musk’s SpaceX.
With regards to the former, both countries are now stating that a deal is close to being finalized. That’s a departure from past pronouncements, even though hostilities flared back up this week amid a declared cease-fire. Perhaps chastened by the recent past, stock gains were muted on Friday.
At the same time, SpaceX went public today and with its share price briefly soaring to $176.52 (30% above its $135 offering), the IPO achieved several firsts:
1. In issuing 555 million shares (about 4% of SpaceX’s outstanding stock), it raised $75 billion, making it the largest IPO in history;
2. Friday’s closing share price was $160.95 – 19% above its initial offering. In turn, that created the world’s first IPO with a $2-plus trillion market cap, making the stock the 6th most valuable public company;
3. A record 360 million shares were traded (as of 2 pm Eastern Time) – about half of that on the Nasdaq alone;
4. SpaceX set aside about 20% of its offering for retail investors, versus a more typical 5-10% in IPOs;
5. Company founder, Elon Musk, is now the world’s first trillionaire.
One impossible-to-quantify effect of today’s massive IPO is that both retail and institutional investors have likely been paring back their exposures to other stocks in their portfolios to accommodate SpaceX shares. Of course, as tech dominates many indexes and investor portfolios, selling other growth stocks would have been a logical move to maintain some diversification. Notably, last week, the tech-rich Nasdaq Composite tumbled nearly 5%, though some of that was attributable to the Broadcom selloff and general profit-taking.
Separately, bond prices barely budged on Wednesday even as the government reported that headline inflation (CPI) had spiked to 4.2% in May. That marked a third consecutive month of accelerating prices, with liquid fuels driving most of it.
However, the report also contained hopeful news: core CPI, which excludes volatile energy and food prices, was up only 0.2% month-over-month. Against that promising backdrop, the Fed is still expected to keep interest rates steady at next week’s meeting, though the odds have risen for a rate-hike later in the year.
For the week through Friday’s close all major U.S. equity benchmarks were not only in the black, but they each gained around 0.75%. That list includes the Dow Industrials, the S&P 500 and the Nasdaq Composite.
Better performances were scored by Russell’s small-cap 2000 and Midcap gauges, which rose 3.9% and 2.3%, respectively. A rotation into value sectors – prompted by a potentially stable rate environment – was beneficial, as were the prospects of a peace accord.
Many overseas markets also gained ground this week, though in most cases Friday’s rising tide helped lift those “boats.” Case in point: the Stoxx Europe 600 gained 1.7% this week, thanks to today’s 1.6% jump. More dramatically, London’s FTSE 100 rose 1.6% on Friday but finished the week up a more modest 1.0%.
The dollar-denominated MSCI Emerging Markets Index declined 2.5% this week. The primary reason was falling oil prices. As it happens, that index has significant exposure to oil-exporting economies including Saudi Arabia, the UAE, Brazil, Mexico, Kuwait and Columbia.
And speaking of oil, a barrel of West Texas Intermediate tumbled 6.3% to $84.29 a barrel. (It’s up almost 50% since the start of the year.)
Wednesday’s inflation report and its underlying positive news cheered fixed-income investors. From the 2-year to the benchmark 10-year Treasury Note, yields retreated 2-10 basis points across those maturities. Of course, with bond prices moving inversely to their yields, it was a good week for bond funds. For its part, the 10-year Treasury ended Friday with a yield of 4.48%.
| Our model performance as of Friday's close is listed below: | ||
|---|---|---|
| Week | YTD | |
| S&P 500 | + 0.7% | + 9.1% |
| Barclays US Aggregate Bond | + 0.5% | + 0.4% |
| Income Model | + 0.7% | + 4.2% |
| G&I Model | + 1.2% | + 8.2% |
| Growth Model | + 1.6% | + 13.0% |
| Select System | + 1.6% | + 14.8% |
| Unique Opportunities Model | + 1.6% | + 11.4% |
Please note that Mid-Cap Stock posted a large distribution today.
Finally, our next regularly scheduled Hotline update is Thursday June 18.
Fidelity Monitor & Insight's Hotline is updated on Friday evenings or whenever the Dow moves 1,000 points or more in either direction.