Stock Market
As of Jul 7, U.S. stock index futures performed as follows: Dow Jones futures inched up 0.24%, S&P 500 futures slipped 0.21%, while Nasdaq 100 futures fell a sharper 1.08%, reflecting caution toward rate-sensitive growth shares ahead of fresh economic data and earnings releases. The divergence signals a rotation toward cyclicals even as technology names digest recent gains.
Notable Stock Movers: Memory bellwether Micron Technology down 4.75% at $938.00 after a weak sector outlook pressured semiconductors. Graphics leader NVIDIA down 2.04% at $191.56 amid reports of rising AI-chip competition in China. CPU specialist Advanced Micro Devices down 3.91% at $530.45, extending the sector pullback.
Conversely, software heavyweight Microsoft up 1.33% at $391.88 and iPhone maker Apple up 0.78% at $315.10 showed pockets of resilience.
Data-analytics player Palantir Technologies Inc. up 2.07% at $135.29 and workflow platform ServiceNow up 3.22% at $111.40 benefited from rising interest in AI “orchestration” tools.
Crinetics Pharmaceuticals Inc. surges nearly 100%, VRTX to Buy CRNX for $10 billion in rare-diseases push.
Fiserv Inc. (FISV) was up 5.16%, and Figma was up 4.98%.
Rivian slumps nearly 11%. The decline was primarily triggered by the company's announcement of an underwritten public offering of 75 million shares of its common stock. This equity offering is expected to increase the number of shares outstanding, resulting in dilution for existing shareholders. The company plans to use the net proceeds for general corporate purposes, including funding equity contributions required under its amended loan arrangement with the U.S. Department of Energy.
Pre-market tone is being set by weakness in advanced memory and storage names, following a profit preview from Samsung that missed revenue expectations. Risk-off sentiment toward AI hardware contrasts with selective buying of cash-rich megacaps as investors await U.S. payrolls revisions and Fedspeak for clues on rate-cut timing.
Other Markets
• 10-year U.S. Treasury yield rose 0.40%, to 4.50%.
• U.S. Dollar Index rose 0.08% to 100.92.
• WTI crude oil futures rose 0.67% to 69.01 USD/barrel; COMEX gold futures fell 0.01% to 4,167.00 USD/ounce.
Key News
1. Vertex Pharmaceuticals agreed to acquire Crinetics Pharmaceuticals for $10 billion in cash, expanding its rare-disease portfolio. The offer of $85 per share represents a 102% premium and adds approved acromegaly therapy Palsonify plus late-stage endocrine candidates. Vertex expects the deal to diversify revenue beyond cystic fibrosis and turn accretive to operating income within three years of closing.
2. Microsoft initiated about 4,800 workforce reductions as part of an AI-focused restructuring. The cuts span commercial and gaming divisions, reallocating expenses toward data-center capacity and generative-AI services. Management emphasized that automation is reshaping roles rather than directly replacing employees.
3. Broadcom extended its bespoke chip-supply partnership with Apple through 2031. The multiyear agreement secures Broadcom’s role in providing custom 5G radio-frequency components, reinforcing a critical revenue stream and long-term visibility for the semiconductor designer.
4. Saudi Arabia slashed August Arab Light crude prices for Asia to a four-year low discount. The move—pricing barrels at $1.50 below the Oman/Dubai benchmark—aims to stimulate demand amid rising regional supply and follows reports of shipping disruptions near the Strait of Hormuz.
5. A Saudi-flagged oil tanker was reportedly damaged near the Strait of Hormuz, prompting a sharp intraday rally in crude futures. Initial assessments suggest no major spill, but the incident underscores persistent geopolitical risks in a corridor handling a fifth of global oil flows.
6. Nvidia faced renewed pressure after reports that China’s DeepSeek is developing an in-house AI inference chip. The potential customer shift highlights growing competition and could challenge Nvidia’s pricing power as global tech giants increasingly design proprietary processors.
7. Samsung Electronics’ quarterly revenue guidance missed forecasts despite a 1,800% profit surge, denting sentiment in U.S. memory stocks. The shortfall intensified pre-market declines in peers including Micron Technology and Western Digital, as investors reassessed demand momentum for advanced memory chips.
8. Rivian filed to issue 75 million new shares to refinance a $4.5 billion Energy Department loan. The capital raise is intended to shore up liquidity as the electric-pickup maker scales production, but the dilution sent its stock sharply lower in pre-market trading.
9. Major U.S. banks are reportedly in talks to acquire a payments network from Fiserv, lifting the fintech’s shares. The potential divestiture would streamline Fiserv’s portfolio and could unlock value as lenders seek efficiencies in transaction processing.
10. SpaceX is set to join the Nasdaq-100 index, triggering passive-fund demand estimated near $6 billion. With only about 5% of shares publicly floated, the fast-track inclusion may spark near-term volatility as index-tracking funds adjust positions, though broader attention remains on the company’s rapid revenue growth outlook.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: For informational purposes only; not investment advice.
