Market Update: 24th June 2026- The Market Has Finally Remembered Gravity?

After spending much of the year behaving like a Labrador that has discovered espresso, markets have finally paused for breath.

The AI trade, the gift that kept on giving, has hit a patch of turbulence. Semiconductor stocks have led another bout of selling overnight, dragging the Nasdaq lower and reminding investors of an inconvenient truth: valuations do, occasionally, matter.

This isn’t panic. Not yet.

It’s positioning.

When everyone owns the same handful of stocks and they’re all sitting on handsome profits, it doesn’t take much to trigger a rush for the exit. And as every seasoned investor knows, liquidity is abundant, right up until the moment you need it.

Elsewhere, the US dollar is back in favour as traders seek safety and scale back expectations of imminent rate cuts. The market has also begun to entertain the possibility that the Federal Reserve may not be finished with tightening just yet. A reminder, perhaps, that central bankers have an irritating habit of refusing to follow the market’s script.

Oil, meanwhile, has gone the other way.

Crude prices have retreated as geopolitical fears ease and traders strip out the conflict premium that had been supporting the market. Ordinarily, lower oil prices would be greeted like an old friend. Today, however, investors are wondering whether cheaper energy says less about inflation and more about slowing growth.

That’s the thing about markets: the same news can mean entirely different things depending on the mood.

The broader picture remains unchanged. The AI revolution is unlikely to disappear because of a few difficult sessions. But the market is beginning to ask a more sensible question: who are the real winners, and who simply had “AI” somewhere in the investment presentation?

Bull markets need corrections in the same way forests need occasional rain. They clear the air, expose the excess and remind investors that risk and reward remain inseparable companions.
Today’s lesson is a simple one.

The age of buying absolutely anything connected to artificial intelligence and expecting it to rise by lunchtime may be drawing to a close.
And, frankly, that’s probably healthy.

Anyway, till next time, all of you trade safe!

By James Trescothick
Head of Market Research and Market Analysis

Risk Disclaimer: This information is for educational purposes only and does not constitute investment advice. Financial markets involve risks, and past performance is not indicative of future results. Always conduct your own research and seek professional advice before making investment decisions.