Wednesday, July 1, 2026

Wednesday's session brought pressure across your equity holdings, capping the first trading day of July on a sour note for the portfolio. Sector-level turbulence and lingering rate sensitivity weighed on sentiment as markets digested the latest macro signals heading into the holiday-shortened week. All three of your equity positions faced headwinds, with fuller detail on each in the blurbs below.

Portfolio Snapshot

Market Overview

Holdings Breakdown

CRDO closed at $259.09, down 4.73% on the session. The postmarket decline follows a sharp three-month rally that has left the stock near the upper end of its annual range, though analyst commentary continues to favor the name on fundamental grounds, suggesting pullbacks may attract buyers at current levels.

IONQ closed at $51.40, down 3.49% on the session. Quantum computing stocks have faced headwinds as investors reassess near-term commercialization timelines and valuations stretched by speculative fervor earlier this year. IonQ's pullback reflects broader sector profit-taking after the three-month surge, though the company remains well above its 52-week lows.

NOW closed at $105.80, up 6.57% on the session. Guggenheim upgraded the stock on valuation grounds, with the analyst framing the deep software selloff as an opportunity for patient capital, while ServiceNow's enterprise AI adoption and new security offerings position it to benefit from workflow automation demand. Watch for the next earnings report to confirm whether the company can sustain execution momentum after a challenging first half.

Rate Environment

Treasury yields closed Wednesday with the 2-year at 4.1% and the 10-year at 4.38%, producing a normal curve with a 28-basis-point spread between those two tenors. The 2-year yield sits above the Fed Funds rate of 3.63%, a configuration that reflects the market pricing some degree of future policy adjustment following prior rate cuts in the current easing cycle. Corporate credit spreads remain notably tight, with AAA paper at 38 basis points over Treasuries and BBB-rated debt at just 95 basis points, signaling that credit markets are not pricing significant stress into the near-term outlook. Taken together, the modestly upward-sloping curve and compressed spreads describe a relatively benign rate environment for equity and fixed-income holdings alike.

Bottom Line

With equities under pressure heading into the holiday-shortened stretch, watch for whether today's softness attracts buyers or invites further selling; staying patient and avoiding reactive moves is the right posture until price action gives a clearer signal.