ECONOMIC WEEK AHEAD: July 6-10

The S&P 500 closed Thursday at 7,483.23, up 1.8% on the week, while the Nasdaq rose 2.1%. Memory chip stocks pulled back sharply last week, cooling off the parabolic run that followed Micron's blowout June 24 earnings report (chart). Shares surged 17% the next day to a new all-time high of $1,255.00, then closed Thursday at $975.56, down 22.3% from the intra-day high. That is the same pattern as March, when a blowout earnings report also sent shares to a high before a sharp pullback.

June's jobs report on Friday adds to the uncertainty. Payrolls rose just 57,000, well below the 115,000 consensus, with April and May revised down a combined 74,000. The unemployment rate still fell to 4.2%, but only because labor market participation dropped to 61.5%, the lowest since March 2021.