01 Stock Market
The U.S. major indexes closed as follows: Dow Jones declined 2.19% at 51,594.14; S&P 500 declined 1.52% at 7,316.15; NASDAQ declined 1.74% at 24,442.94.
Chip-linked names led the session’s most pronounced moves. Micron Technology declined 9.94% at $739.00; leveraged fund Direxion Daily Semiconductors Bull 3x Shares fell 16.02% at $91.99, while its bearish counterpart Direxion Daily Semiconductors Bear 3x Shares rose 16.35% at $73.15. Large-cap suppliers were also weak: Advanced Micro Devices fell 5.51% at $429.56, Intel fell 5.12% at $81.88 and NVIDIA declined 3.55% at $190.01.
Earnings headlines rippled through broader tech and index-tracking ETFs. ServiceNow rose 4.65% at $115.76, and Alphabet edged up 0.95% at $335.76; meanwhile Tesla fell 2.97% at $298.32. Market benchmarks also flashed red: Invesco QQQ declined 2.04% at $661.73, SPDR S&P 500 ETF Trust declined 1.54% at $729.46, whereas the inverse ProShares UltraPro Short QQQ gained 6.30% at $49.44.
02 Other Markets
U.S. 10-year Treasury yield was unchanged at 4.62%. USD/CNH fell 0.05% at 6.78; USD/HKD rose 0.00% at 7.84. U.S. Dollar Index fell 0.08% at 100.77. WTI crude futures fell 0.04% at 84.43 USD/bbl; COMEX gold futures rose 1.26% at 4,148.60 USD/oz.
03 Top News
1. Meta Platforms’ free cash flow plunged 91%, highlighting the cost of its AI expansion. The company reported $784 million in Q2 free cash flow versus $8.55 billion a year earlier and lifted its 2026 capital-expenditure floor to $130 billion. Shares fell about 7.7% in extended trading.
2. Microsoft beat expectations as Azure revenue surged 43% in its fiscal Q4. Cloud backlog climbed to $678 billion, and more than 30 million customers now pay for Microsoft 365 Copilot. The strong print eased concerns over the firm’s hefty $190 billion annual AI investment plan.
3. Qualcomm’s third-quarter profit dropped, prompting plans to raise chip prices. Net income fell to $2 billion amid higher input costs and soft handset sales. Management said price hikes aim to protect margins; the stock slid 7.6% after hours.
4. Arm Holdings flagged robust AI demand but saw its shares retreat nearly 7% on worries over smartphone royalties. The chip-design firm forecast Q2 revenue above consensus yet cautioned that handset royalties may dip, tempering investor enthusiasm despite strong data-center momentum.
5. Fortinet lifted its full-year outlook as cybersecurity spending accelerates. The company now sees 2026 revenue of $8.02 billion–$8.18 billion and EPS of $3.41–$3.47, both above prior guidance. Second-quarter sales of $2.05 billion topped expectations.
6. Bank of England is poised to hold rates but warned Middle-East tensions could fuel inflation. With U.K. CPI easing to 2.6%, policymakers are expected to keep the bank rate at 3.75% while signaling readiness to hike if energy costs spike.
7. Brookfield Asset Management and NextEra Energy formed a $100 billion venture to build an AI data-center complex in Kentucky. The project repurposes a former uranium-enrichment site and underscores utilities’ drive to power the AI boom amid higher interest-rate pressures on the sector.
8. The Federal Reserve kept its policy rate at 3.5%–3.75% as Chair Kevin Warsh reaffirmed the “no wavering” commitment to a 2% inflation target. Three dissenters sought a hike, but the statement avoided forward guidance; 10-year Treasury yields finished fractionally higher.
9. Lam Research posted record quarterly results, buoyed by AI-driven semiconductor equipment demand. Revenue jumped to $6.72 billion and adjusted EPS hit $1.82, beating forecasts. The firm guided Q1 revenue up to $8.1 billion.
10. Glencore said volatile commodity markets boosted first-half trading performance. The miner highlighted strong energy and metals price swings that helped its traders, even as the broader materials sector reacted to the Fed’s steady-rate stance.
Sources: Reuters, Dow Jones, public market data Disclaimer: This content is for reference only and does not constitute investment advice.
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