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Meta ($META ) plans to sell excess AI computing capacity through a new cloud business, creating a potential revenue stream to offset heavy infrastructure spending and compete with major cloud providers. Shares popped 9% in their best day since January.
SpaceX ($SPCX ) allegedly showed investors a slim handset-like AI device prototype that integrates xAI tech and runs a proprietary operating system. The project is early-stage, though Elon Musk denied the report. Shares tumbled 8%.
Alibaba ($BABA ) and its U.S. payment processor agreed to pay $600M and strengthen compliance to resolve allegations that they failed to prevent illegal drug and pharma equipment sales. Shares fell 2% premarket.
Jobs growth misses expectations: The U.S. economy gained 57K jobs in June, missing estimates of 115K — and down from 129K jobs in May. April and May totals were revised down by 74K. Still, the unemployment rate dropped from 4.3% to 4.2%.
Seasonally adjusted initial jobless claims totaled 215,000 for the week ending June 27, down 1,000 WoW. The 4-week moving average was 220,000, down 2,500 WoW.
Meta ($META ) will limit certain AI smart-glasses features unless users subscribe to a $19.99 monthly plan. The move could expand recurring revenue but may face user backlash.
All 3 main indices rose yesterday, with the Dow scoring a record close. The Dow had its best H1 performance in 5 years, and the Russell its best in 35 years. Both the Nasdaq and S&P 500 saw their best Q2 since 2020, though gold suffered its worst quarter in 13 years.
The Nasdaq slid 4.6% over the course of last week, with the S&P 500 down 2% and the Dow rising 0.6%. Micron (MU) fell 6% on Friday, but J&J (JNJ), AbbVie (ABBV), and Eli Lilly (LLY) climbed 4-7%.
🛢️ WTI Crude Oil slips below $70 as easing US-Iran tensions reduce supply disruption fears.
Markets now shift focus to the API Crude Oil Inventory report. A larger inventory draw could support prices, while a surprise build may add further downside pressure.
Volatility remains in play. 📊
Core PCE inflation the Fed's preferred inflation measure rose 3.4% annually in May, its highest level since Oct. 2023. Headline PCE reached 4.1%, in line with estimates.
Micron ($MU ) beat earnings and raised guidance as AI memory demand drove revenue and profit sharply higher. The company now expects memory shortages to persist beyond 2027 and has signed 16 long-term supply agreements. Shares surged 19% premarket.
Federal Reserve Chair Kevin Warsh held rates at 3.5%–3.75%, launched 5 task forces to review Fed operations, and skipped providing a rate forecast. Markets turned more hawkish as investors interpreted his inflation focus and Fed overhaul as signs of potential 2026 rate increases.
Intel ($INTC ) stock surged 9% after President Trump said Apple (AAPL) will design and build chips with Intel in the U.S. The partnership could strengthen Intel’s foundry business and advance efforts to expand domestic chip manufacturing.
Apple ($AAPL ) plans to raise some prices, as AI-driven shortages have increased memory and storage chip costs. CEO Tim Cook called the situation “unsustainable,” signaling potential price hikes for iPhones, iPads, and Macs.
Oil prices fell to 3-month lows as investors bet that a preliminary U.S.-Iran peace deal will lead to the reopening of the Strait of Hormuz, easing supply concerns. Brent crude dropped to around $81 per barrel and WTI to below $79.