Nasdaq Index Falls Over 1% Amid Chip Sector Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Stock indexes have retreated amid losses for the heavyweight chip sector and fresh deterioration in the macroeconomic backdrop. The Nasdaq was the laggard, falling over 1%, while the Dow pulled back from a record high reached in morning trading. Memory producers sank even though Samsung posted a 19-fold surge in profit last quarter. The surge was in line with the sector's rally this year, but markets appear to be growing increasingly skeptical on whether AI hyperscalers can justify elevated levels of capital expenditure on infrastructure. Yields edged higher after attacks on an LNG tanker in the Middle East tempered hopes of lower energy inflation.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Walmartsaid it wouldon many summer staples following a Truth Social post from President Trump saying the retail giant was doing so at his requestChina's DeepSeek is developing its own AI chip in a push toand Huawei chips, Reuters reportsBig banks have held talks in recent months toowned by Fiserv, Reuters and WSJ reportVertex Pharmaceuticalsannounced anPharmaceuticalsfor $85 per share in cash, for a total equity value of approximately $10BSamsung Electronicsreported, but the AI-fueled earnings still failed to meet high investor expectations2. WALL STREET CALLS:Wall Street rolled outof SpaceX, including Raymond James starting the stock with a Strong Buy rating and $800 price targetScotiabankCloudflareto OutperformBofAAdobeat Underperform with a $190 price target, down from the Buy rating the firm previously heldDeutsche BankFirst Solarto BuyMelius ResearchAmerican Airlinesto Hold3. AROUND THE WEB:Metasaid four states are seeking $1.4T in penalties over accusations it designed its social media platforms to addict young users and misled the public on their safety, Reuters reportsSynopsysplans to no longer offer a suite of manufacturing process control software used by semiconductor makers, Reuters saysAmazonis seeking to raise at least $25B through a U.S. dollar bond sale to fund investments in artificial intelligence infrastructure, Bloomberg reportsPresident Trump is expected to support a potential sale of Lockheed Martin'sF-35 Lightning II jets to Turkey during a visit to Ankara, Reuters saysThe Trump administration is evaluating how to structure a proposed Strategic Bitcoin Reserve, Bloomberg reports4. MOVERS:Digital Oceangains after announcing itto exceed $800MRedwood Trusthigher after highlightingFigma (FIG) increases after BofAwith a Buy ratingRivian (RIVN) lower aftershares of stockUnited States Antimonyfalls afterof a flotation mill5. EARNINGS/GUIDANCE:Interactive Strengthfor FY26Cosmos HealthShellissued anAbbVieprovided itsand cut its guidance for FY26Sealsq (LAES)and backed its guidance for FY26INDEXES:Near midday, the Dow was down 0.38%, or 201.36, to 52,854.55, the Nasdaq was down 1.20%, or 312.30, to 25,808.86, and the S&P 500 was down 0.53%, or 40.11, to 7,497.32.
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Analyst Views on SPCX
Wall Street analysts forecast SPCX stock price to rise
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Current: 162.000
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Current: 162.000
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About SPCX
Space Exploration Technologies Corp. designs, manufactures, launches, and operates products and services built on technologies, including rockets and spacecraft. The Company's segments include Space, Connectivity, and artificial intelligence (AI). Its Space segment designs, manufactures, and launches reusable rockets to provide access to space. Its Connectivity segment operates broadband data and communications network powered by approximately 9,600 Starlink broadband and mobile satellites in Low-Earth orbit, delivering connectivity to consumer, enterprises, and government customers over 164 countries, territories, and other markets. In its AI segment, it operates a vertically integrated AI platform spanning its truth-seeking frontier model Grok, AI solutions for consumer and enterprise customers, X-its real-time information, entertainment, and free speech platform and AI computational infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SpaceX Sets Record IPO and Joins Nasdaq-100
- Record IPO: Space Exploration Technologies officially went public on June 12, achieving the largest initial public offering in history with a market cap exceeding $2 trillion, marking a significant milestone that is likely to attract increased investor interest.
- Nasdaq New Rules: SpaceX is set to join the Nasdaq-100 index on July 7, becoming the first company to enter under the newly established 'fast-track entry' rules, which aim to expedite the integration of mega-IPOs into the market.
- Fast-Track Mechanism: Nasdaq's new rules allow companies ranked in the top 40 by market cap to be evaluated on their seventh trading day, enabling eligible firms to join the index as soon as the 15th trading day post-IPO, fundamentally altering the listing strategy for large companies.
- Market Impact: The inclusion of SpaceX is expected to significantly affect shareholders of the Invesco QQQ and Invesco Nasdaq 100 ETFs, as its anticipated weighting of around 1% in the index will redefine investor allocation strategies towards large tech stocks.
See More
SpaceX IPO Sets Record but Faces Challenges Ahead
- Record IPO Financing: SpaceX raised $85.7 billion in its IPO, nearly tripling Saudi Aramco's previous record of $29.4 billion, demonstrating strong market confidence in its AI and space infrastructure ventures.
- Significant Valuation Fluctuations: Although SpaceX's valuation approached $3 trillion post-IPO, it has since retraced to $2.13 trillion as of July 2, with a share price still 20% above its IPO listing, reflecting cautious market sentiment regarding its future performance.
- Complex Lockup Period: SpaceX sold only about 5% of its outstanding shares in its IPO, with the float expected to increase rapidly in the coming months as insiders become eligible to sell, potentially exerting downward pressure on the stock price.
- High Valuation Risks: With a current price-to-sales ratio of 114, significantly above the historical average of 30, SpaceX's stock faces substantial correction risks, particularly amid fluctuating market emotions and investor sentiment.
See More
SpaceX's IPO Sparks Market Buzz and Competition
- Market Buzz: Since its mid-June IPO, Space Exploration Technologies (SPCX) has become the most-discussed stock, with its valuation making it the largest IPO of one of the world's most valuable companies, reflecting high investor expectations for its future potential.
- Rocket Launch Competition: Rocket Lab (RKLB) has successfully launched 91 times, deploying over 262 satellites, and while its Electron rocket has a maximum payload of 660 pounds, the upcoming Neutron rocket is expected to increase this to nearly 30,000 pounds, indicating a growing demand for diverse launch services in the market.
- Satellite Internet Outlook: SpaceX's Starlink currently operates over 10,000 satellites serving more than 12 million customers, generating nearly $4.2 billion in revenue last year, while AST SpaceMobile (ASTS), despite having only a few satellites, could grow rapidly due to partnerships with Verizon and AT&T, with revenue expected to increase by 140% this year.
- Industry Growth Forecast: According to Precedence Research, the global launch market is expected to double by 2035, reaching $70 billion annually, positioning both Rocket Lab and AST SpaceMobile favorably within this rapidly expanding industry.
See More
SpaceX Starship to Boost Starlink Business
- Optimistic Market Outlook: Wells Fargo initiated coverage on SpaceX's Starship with an 'Overweight' rating and a $230 price target, indicating over a 43% upside from Monday's closing price, reflecting strong confidence in the company's future growth potential.
- Long-Term Growth Drivers: Morgan Stanley also assigned an 'Overweight' rating with a $300 price target, citing four key growth drivers including monetizing enterprise AI, expanding the Starlink network, and reducing launch costs, which are expected to propel the company's long-term development.
- Inclusion in Nasdaq 100: SpaceX is set to officially join the Nasdaq 100 Index on Tuesday, with JPMorgan estimating that this inclusion could lead to up to $4.3 billion in inflows into the stock, further enhancing market visibility.
- Divergent Investor Sentiment: Despite the positive ratings from major brokerages, retail sentiment on Stocktwits remains bearish, with some users predicting the stock price will fluctuate between $135 and $140, indicating caution regarding short-term performance.
See More
Meta Plans to Rent AI Computing Capacity to Boost Revenue
- New Revenue Stream: Meta plans to rent out its excess AI computing capacity, which could generate billions in monthly revenue, particularly beneficial as its stock trades at a discount, enhancing financial performance.
- Advertising Business Transformation: By leveraging AI to boost user engagement, Meta increased ad visibility per user, resulting in a record $56.3 billion revenue in Q1 2026, a 33% year-over-year growth, highlighting AI's critical role in its advertising strategy.
- Surging Capital Expenditures: Meta's capital expenditures reached $72 billion in 2025 and are projected to exceed $145 billion in 2026, primarily for AI data center infrastructure, laying a solid foundation for future revenue growth.
- Market Competition Strategy: Rather than competing with major cloud providers like Amazon and Microsoft, Meta is likely to focus on serving niche markets for AI software development, positioning itself strategically in emerging sectors.
See More
SpaceX Achieves Historic $2 Trillion IPO Valuation
- Historic IPO: SpaceX went public last month, achieving the largest initial public offering in history with a first-day valuation of $2 trillion, reflecting the market's high expectations for its future growth potential.
- Investor Decision Challenges: Despite the hype surrounding SpaceX's IPO, analysts are divided on its valuation, with some believing it could surpass NVIDIA, while others express skepticism about its current optimistic levels.
- Inclusion in Nasdaq-100: SpaceX's addition to the Nasdaq-100 this week makes it easier for investors to gain exposure to the stock through ETFs tracking the index, further enhancing its market accessibility.
- Long-term Investment Risks: While short-term investing is risky, with SpaceX's stock down nearly 20% since June 16, long-term investors must still focus on the company's fundamentals, including financial health, competitive advantages, and a sustainable business model.
See More
SpaceX Sets Record IPO and Joins Nasdaq-100
- Record IPO: Space Exploration Technologies officially went public on June 12, achieving the largest initial public offering in history with a market cap exceeding $2 trillion, marking a significant milestone that is likely to attract increased investor interest.
- Nasdaq New Rules: SpaceX is set to join the Nasdaq-100 index on July 7, becoming the first company to enter under the newly established 'fast-track entry' rules, which aim to expedite the integration of mega-IPOs into the market.
- Fast-Track Mechanism: Nasdaq's new rules allow companies ranked in the top 40 by market cap to be evaluated on their seventh trading day, enabling eligible firms to join the index as soon as the 15th trading day post-IPO, fundamentally altering the listing strategy for large companies.
- Market Impact: The inclusion of SpaceX is expected to significantly affect shareholders of the Invesco QQQ and Invesco Nasdaq 100 ETFs, as its anticipated weighting of around 1% in the index will redefine investor allocation strategies towards large tech stocks.
See More
SpaceX IPO Sets Record but Faces Challenges Ahead
- Record IPO Financing: SpaceX raised $85.7 billion in its IPO, nearly tripling Saudi Aramco's previous record of $29.4 billion, demonstrating strong market confidence in its AI and space infrastructure ventures.
- Significant Valuation Fluctuations: Although SpaceX's valuation approached $3 trillion post-IPO, it has since retraced to $2.13 trillion as of July 2, with a share price still 20% above its IPO listing, reflecting cautious market sentiment regarding its future performance.
- Complex Lockup Period: SpaceX sold only about 5% of its outstanding shares in its IPO, with the float expected to increase rapidly in the coming months as insiders become eligible to sell, potentially exerting downward pressure on the stock price.
- High Valuation Risks: With a current price-to-sales ratio of 114, significantly above the historical average of 30, SpaceX's stock faces substantial correction risks, particularly amid fluctuating market emotions and investor sentiment.
See More
SpaceX's IPO Sparks Market Buzz and Competition
- Market Buzz: Since its mid-June IPO, Space Exploration Technologies (SPCX) has become the most-discussed stock, with its valuation making it the largest IPO of one of the world's most valuable companies, reflecting high investor expectations for its future potential.
- Rocket Launch Competition: Rocket Lab (RKLB) has successfully launched 91 times, deploying over 262 satellites, and while its Electron rocket has a maximum payload of 660 pounds, the upcoming Neutron rocket is expected to increase this to nearly 30,000 pounds, indicating a growing demand for diverse launch services in the market.
- Satellite Internet Outlook: SpaceX's Starlink currently operates over 10,000 satellites serving more than 12 million customers, generating nearly $4.2 billion in revenue last year, while AST SpaceMobile (ASTS), despite having only a few satellites, could grow rapidly due to partnerships with Verizon and AT&T, with revenue expected to increase by 140% this year.
- Industry Growth Forecast: According to Precedence Research, the global launch market is expected to double by 2035, reaching $70 billion annually, positioning both Rocket Lab and AST SpaceMobile favorably within this rapidly expanding industry.
See More
SpaceX Starship to Boost Starlink Business
- Optimistic Market Outlook: Wells Fargo initiated coverage on SpaceX's Starship with an 'Overweight' rating and a $230 price target, indicating over a 43% upside from Monday's closing price, reflecting strong confidence in the company's future growth potential.
- Long-Term Growth Drivers: Morgan Stanley also assigned an 'Overweight' rating with a $300 price target, citing four key growth drivers including monetizing enterprise AI, expanding the Starlink network, and reducing launch costs, which are expected to propel the company's long-term development.
- Inclusion in Nasdaq 100: SpaceX is set to officially join the Nasdaq 100 Index on Tuesday, with JPMorgan estimating that this inclusion could lead to up to $4.3 billion in inflows into the stock, further enhancing market visibility.
- Divergent Investor Sentiment: Despite the positive ratings from major brokerages, retail sentiment on Stocktwits remains bearish, with some users predicting the stock price will fluctuate between $135 and $140, indicating caution regarding short-term performance.
See More
Meta Plans to Rent AI Computing Capacity to Boost Revenue
- New Revenue Stream: Meta plans to rent out its excess AI computing capacity, which could generate billions in monthly revenue, particularly beneficial as its stock trades at a discount, enhancing financial performance.
- Advertising Business Transformation: By leveraging AI to boost user engagement, Meta increased ad visibility per user, resulting in a record $56.3 billion revenue in Q1 2026, a 33% year-over-year growth, highlighting AI's critical role in its advertising strategy.
- Surging Capital Expenditures: Meta's capital expenditures reached $72 billion in 2025 and are projected to exceed $145 billion in 2026, primarily for AI data center infrastructure, laying a solid foundation for future revenue growth.
- Market Competition Strategy: Rather than competing with major cloud providers like Amazon and Microsoft, Meta is likely to focus on serving niche markets for AI software development, positioning itself strategically in emerging sectors.
See More
SpaceX Achieves Historic $2 Trillion IPO Valuation
- Historic IPO: SpaceX went public last month, achieving the largest initial public offering in history with a first-day valuation of $2 trillion, reflecting the market's high expectations for its future growth potential.
- Investor Decision Challenges: Despite the hype surrounding SpaceX's IPO, analysts are divided on its valuation, with some believing it could surpass NVIDIA, while others express skepticism about its current optimistic levels.
- Inclusion in Nasdaq-100: SpaceX's addition to the Nasdaq-100 this week makes it easier for investors to gain exposure to the stock through ETFs tracking the index, further enhancing its market accessibility.
- Long-term Investment Risks: While short-term investing is risky, with SpaceX's stock down nearly 20% since June 16, long-term investors must still focus on the company's fundamentals, including financial health, competitive advantages, and a sustainable business model.
See More
