US Stock Market Summary – July 1, 2026

US equities wrapped up the first trading day of the second half in mixed territory. The Dow dipped 0.03% to 52,305, essentially flat; the S&P500 slipped 0.22% to 7,483; and the Nasdaq fell 0.66% to 26,040. Index moves were modest, but underneath the surface a sharp rotation from AI semiconductors into software defined the session. Meta ($META) jumped 8.85% on reports it is preparing to launch a cloud business renting out its spare AI compute capacity, while concerns over a compute oversupply dragged chip stocks down by double digits, with Micron ($MU) and Corning ($GLW) among the hardest hit. Rate-cut hopes were revived after June ADP private payrolls (released the prior day) came in below expectations and Fed Chair Warsh signaled that inflation risks are easing. (Source)

Sector performance was sharply divided between a deep slump in semiconductors and strength elsewhere. Communications Services (+2.44%) led the way on Meta's surge, followed by Financials (+2.18%), Consumer Discretionary (+0.69%), and Health Care (+0.55%). Tech (-2.57%) stood alone as a major decliner, weighed down by the chip selloff. After semiconductors led the market over the prior two sessions, capital rotated broadly into software, financials, and defensives. In asset markets, international crude oil prices softened (-0.56%) and the dollar strengthened amid skepticism over Iran negotiations. The June ISM Manufacturing PMI came in at 53.3, slightly below expectations but still in expansion territory.

Winners and losers flipped within a single session. The epicenter of the selloff was semiconductors: Corning ($GLW) plunged 13.62%, KLA ($KLAC) fell 11.77%, Micron ($MU) dropped 10.57%, Sandisk ($SNDK) lost 10.50%, and Applied Materials ($AMAT) tumbled 9.97%. The catalyst was the report that Meta is entering the cloud business by renting out its spare compute capacity, which fueled worries of an AI hardware supply glut. (Source)

Software and platforms, by contrast, cheered. Meta ($META) surged 8.85%, raising expectations that it could become the fourth major cloud player alongside Amazon, Microsoft, and Google. Palantir ($PLTR) rose 7.73% on news of collaboration with Nvidia and Michael Burry trimming his short position, AppLovin ($APP) gained 9.58%, and Shopify ($SHOP) added 6.52%. Defensive name PepsiCo ($PEP) also climbed 4.25% as a rebound from prior underperformance. (Source)

> The main events for the next trading day will be displayed automatically.

> "The pace of hiring tells both a supply-side and a demand-side story. People are taking longer to find jobs, but in some industries we're also seeing signals of labor-supply constraints. For now, overall job creation is in a slowdown phase."

> — Nela Richardson, Chief Economist at ADP

> "Inflation risks are gradually fading."

> — Kevin Warsh, Chair of the Federal Reserve

Semiconductors handed back their prior surge in a single session and reverted to an MACD dead cross, while software names such as Palo Alto Networks and Shopify broke above their upper Bollinger Bands — clearly marking out the winners of the rotation. With Thursday's employment report on the horizon, please refer to the report below for stock-specific signals.