General Market News

Energy Transfer (ET) has underperformed its industry and broader sector over the past six months, prompting questions about investment strategy. Despite the stock's weak relative performance, the company benefits from a vast 140,000-mile pipeline network and 90% fee-based revenue model that generates predictable cash flows.

• ET's extensive 140,000-mile network and 90% fee-based revenue structure provide stable, predictable cash flow generation
• The stock trades at a discount to industry peers based on EV/EBITDA valuation, presenting potential value
• Return on equity (ROE) lags behind competitors and debt-to-capital ratio is slightly elevated compared to peers

The Lazard Japanese Equity ETF (JPY) has reached a new 52-week high, gaining 38% from its 52-week low of $27.58 per share. The actively managed fund invests in undervalued Japanese equities and charges 60 basis points in annual fees. Strong performance has been driven by historic foreign investment in Japanese stocks and structural economic shifts including rising wages and inflation.

• The fund has surged 38% from its 52-week low of $27.58, reaching a new 52-week high
• Performance driven by historic net foreign buying of Japanese equities, an AI-driven corporate boom, and Japan's transition from deflation to rising wages and inflation
• Heavy allocation to financial and industrial sectors positions the fund to benefit from structural economic changes in Japan

A U.S. bankruptcy judge approved a $46.75 million settlement for victims of a 2023 data breach at genetic testing company 23andMe. Judge Brian Walsh ruled the settlement was fair, equitable, and in the best interest of the trust managed by 23andMe's bankruptcy administrator.

• The settlement addresses a 2023 data breach at 23andMe, which exposed sensitive genetic testing information
• U.S. Bankruptcy Judge Brian Walsh in St. Louis approved the $46.75 million payout on Tuesday
• The settlement is overseen by a trust managed by 23andMe's bankruptcy administrator, indicating the company is undergoing bankruptcy proceedings

Fiat launched its Topolino mini electric vehicle in the U.S. starting at $13,995, targeting private communities and resorts initially. The compact two-seater has a 46-mile range and will offer an upgrade kit for limited public road use, expanding Stellantis brand Fiat's North American lineup beyond the 500e.

• Vehicle weighs just over 1,000 pounds, measures about 8 feet long, and initially limited to 19 mph for private property use
• Upgrade kit available from late summer will enable Low-Speed Vehicle status, allowing up to 25 mph and access to certain public roads
• Features a 5.4-kilowatt-hour lithium-ion battery with full charge in approximately five hours

The U.S. labor market shows signs of strengthening after stalling in 2025, with improved job growth and positive leading indicators. This development may prompt the Federal Reserve to refocus on fighting inflation, as bond yields rise globally. Meanwhile, AI-related companies are dominating market performance and capital raising, creating an unprecedented divergence from other sectors, while SpaceX prepares for one of the largest IPOs in history.

• Job growth has accelerated in recent months following a stall in much of 2025, with temporary employment and manufacturing overtime hours showing positive momentum
• Momentum stocks have outperformed global markets by the largest spread on record over the past two months, driven primarily by AI-related companies which account for the majority of capital raised this year
• Rising chip prices may support the AI trade but reverse decades of technology-driven deflation, while inflation breakevens continue moving higher and long treasury yields reach new highs across developed economies

ASE Technology (ASX) has surged 169% year-to-date through April 2026, significantly outperforming the broader semiconductor industry and major peers. The company is benefiting from strong AI chip packaging demand, particularly in advanced packaging services, which is driving record revenues and margin expansion. Despite the rally, the stock trades at a lower valuation than industry peers, maintaining a Zacks Rank #1 (Strong Buy).

• ASX reported record Assembly, Testing and Materials revenues of NTD 112.4 billion in Q1 2026, up 30% year-over-year, with Leading Edge Advanced Packaging (LEAP) revenues expected to exceed $3.5 billion in 2026 (raised 10% from prior outlook)
• Gross margins improved to 26% in Q1 2026 (up 340 basis points year-over-year) driven by higher factory utilization and increased LEAP mix, with management expecting margins to reach the upper end of the 26-27% structural range
• The stock trades at a P/S ratio of 4.36X, significantly below the industry average of 16.09X and peers like Lam Research (20.38X) and Applied Materials (16.60X), while consensus estimates project revenue growth of 19.6% in 2026 and 22.4% in 2027

LATAM Airlines (LTM), Latin America's leading airline, is highlighted as a top value stock following its successful emergence from Chapter 11 bankruptcy in November 2022. The company restructured with $2.2 billion in liquidity and 35% debt reduction, and now carries a Zacks Rank #2 (Buy) with strong Value and VGM Style Scores of A.

• LATAM emerged from COVID-19 pandemic-related bankruptcy with approximately $2.2 billion in liquidity and a 35% reduction in debt, creating a more resilient operational structure
• The stock has an attractive forward P/E ratio of 11.41 and received an upward earnings revision, with the fiscal 2026 consensus estimate increasing $0.82 to $5.04 per share
• LTM receives a Zacks Rank #2 (Buy) rating with Style Scores of A for both Value and VGM (Value-Growth-Momentum composite), indicating high probability of outperformance

Arya Bolurfrushan, founder and CEO of Abu Dhabi-based AI startup AppliedAI and former Goldman Sachs banker, secretly pleaded guilty in June 2025 to securities fraud conspiracy for trading on insider merger tips from lawyers at major law firms. Prosecutors recommend a two-year prison sentence and forfeiture of approximately $954,000 in profits. His guilty plea came before indictments were announced against 30 others in May, including attorneys from Sidley Austin, Latham & Watkins, and Goodwin Procter.

• Bolurfrushan generated about $954,000 in trading profits, including $950,000 from trading on confidential information about Orchard Therapeutics' acquisition by Kyowa Kirin in 2023, sharing roughly $60,000 with the lawyers who provided tips
• Nine other defendants also pleaded guilty in proceedings before the May indictments were announced, while attorneys Steven Nourafchan and Robert Yadgarov pleaded not guilty and await trial
• The scheme involved lawyers accessing confidential merger documents at their firms and sharing information with traders in exchange for a cut of profits, including details about Sixth Street's $5.1 billion acquisition of Enstar in 2024

Ukrainian drones struck Russia's largest refinery in Omsk, Siberia, causing fuel queues and supply concerns in the region. The Gazprom Neft-owned facility processes around 460,000 barrels per day and is Russia's largest gasoline producer. Ukraine has intensified attacks on Russian energy infrastructure to disrupt funding for Moscow's war effort.

• The Omsk refinery processed 23 million metric tons last year (460,000 barrels/day) and is Russia's top gasoline producer, making disruptions likely to worsen existing fuel shortages
• Motorists faced approximately 20-minute wait times at filling stations, with some panic-buying reported and one large network halting petrol sales to individual drivers
• Putin's energy adviser described Russia's fuel market as 'tight' due to summer demand and what he termed 'unscheduled refinery maintenance', while restoration work is underway at the damaged facility

New research from the New York Federal Reserve found that bank runs escalate into failures primarily when financial institutions have poor underlying health, rather than from small shocks alone. The study used AI-powered analysis of millions of historical newspaper pages to create the most comprehensive database of U.S. bank runs. The findings suggest runs act as triggers, but insolvent banks are necessary for systemic damage to occur.

• Data offers 'little support' for the idea that small shocks can generate widespread banking panics without underlying weakness
• Researchers used large language models to extract bank run information from digitized historical newspapers, creating the most comprehensive U.S. bank run database
• While runs can occur in both weak and strong banks, poor fundamentals are necessary for runs to result in actual bank failures and severe economic distress

President Trump is renewing efforts to remove Fed Governor Lisa Cook to gain a board majority favoring rate cuts, while markets price a 64% chance of a rate hike by year-end. Core PCE and CPI are at 12-month highs with unemployment at 4.2%, pushing the two-year Treasury to 4.10% despite Trump's preference for lower rates. A politicized Fed cutting into rising inflation could drive long-term yields higher and hurt duration-sensitive assets.

• Removing Cook would give Trump-appointed governors (Warsh, Bowman, Waller) a decisive majority over Biden appointees (Cook, Jefferson, Barr), potentially shifting Fed policy toward cuts despite inflationary data
• Markets now price 64% probability of a rate hike by year-end, with Core PCE at 90.9 percentile, CPI up 0.5% month-over-month, and June FOMC dot plot raising median year-end funds rate projection to 3.8% from 3.4%
• A Fed that cuts to satisfy political pressure while inflation remains sticky could trigger 1970s-style stagflation dynamics, benefiting gold and TIPS while hurting long bonds and unprofitable growth stocks, with the 30-year Treasury already at 4.98%

The Dow Jones gained 160 points (0.3%) on Tuesday while the Nasdaq fell 0.7% due to a broad selloff in semiconductor stocks ahead of second-quarter earnings season. The divergence was driven by weakness in memory and chip stocks following Samsung's disappointing market reaction despite strong earnings, while software companies like Microsoft and Salesforce supported the Dow.

• Micron Technology fell 6.9% and Western Digital dropped over 6% as memory stocks led semiconductor declines after Samsung's selloff in Asia triggered global chip weakness
• The selloff began after South Korea's Kospi dropped nearly 5%, with investors focusing on concerns about AI spending and elevated expectations rather than Samsung's 19-fold profit increase
• Markets await Q2 earnings season to test AI companies' valuations and Fed meeting minutes on Wednesday, with traders expecting at least one 25-basis-point rate increase by year-end

U.S. President Donald Trump announced he will lift sanctions on Turkey and consider selling F-35 fighter jets to Ankara during a NATO summit meeting with Turkish President Erdogan on July 7, 2026. The sanctions were imposed in 2020 under CAATSA after Turkey purchased Russian S-400 air defense systems, which also led to Turkey's removal from the F-35 program.

• Turkey has been under U.S. sanctions since 2020 for acquiring Russian S-400 missile defense systems, which resulted in its expulsion from the F-35 fighter jet program
• Trump stated he will remove the CAATSA sanctions and make a decision on potential F-35 sales to Turkey, though legal and congressional hurdles remain unresolved
• The discussions between Trump and Erdogan at the NATO summit will also cover trade issues between the two nations

Stock futures were mixed on Tuesday morning, with tech stocks retreating after Monday's rally that pushed the Dow to a record high. SpaceX is joining the Nasdaq 100 today, while Samsung's preliminary Q2 results disappointed investors despite beating estimates, dragging down major chip stocks.

• Nasdaq futures fell 1% and S&P 500 futures down 0.2%, while Dow futures gained 0.3%; semiconductor stocks dropped sharply with the VanEck Semiconductor ETF down 3% after Samsung's results failed to meet AI-driven expectations
• SpaceX officially joins the Nasdaq 100 index ahead of the opening bell, less than a month after its record-breaking IPO following rule changes to accommodate major AI stock debuts
• Fiserv shares rallied on reports that JPMorgan, Bank of America, Wells Fargo and PNC are considering acquiring its payments network to bypass debit card transaction fee limits, while Rivian stock fell despite beating Q2 revenue estimates as it announced a new stock offering of 75 million shares

Major U.S. stock indices showed mixed performance on July 7, 2026, with buyers defending dips and maintaining long-term bullish trends. The Nasdaq 100 fell slightly in early trading, the Dow Jones 30 remained strong above 53,000, and the S&P 500 bounced from trendline support near 7,500. Technical analysis suggests the uptrend remains intact despite short-term volatility.

• The Dow Jones 30 is trading above 53,000, showing the strongest performance among the three indices with clear bullish momentum
• The Nasdaq 100's 50-day EMA is providing support, with buyers expected to return if the index breaks above 30,000
• The S&P 500 is forming a 'W-pattern' near 7,500 after bouncing from symmetrical triangle trendline support, providing comfort to bulls

Kalohexis, a clinical-stage biotechnology company focused on obesity treatments, has confidentially filed for an initial public offering in the U.S. The company, which spun out of Endevica Bio in March 2025, is developing drugs targeting the body's melanocortin system to treat metabolic disorders. The filing adds to a rebound in IPO market activity, though offering terms have not yet been disclosed.

• Kalohexis's lead program, 710GO, is an oral dual MC3/MC4 receptor agonist designed to induce durable weight loss for general obesity treatment
• The company is also developing mifomelatide, a drug aimed at treating cachexia, a life-threatening wasting syndrome in advanced cancer patients
• The company launched after spinning out of Endevica Bio in March, with Endevica Bio's leadership team leading the new venture

U.S. chip stocks rallied Monday on news of Broadcom's extended Apple deal through 2031, but Asian chip stocks declined Tuesday despite Samsung's 19-fold profit jump, suggesting the semiconductor boom may be fully priced in. The selloff dragged South Korea's KOSPI down 5% and pressured Nasdaq futures lower by over 1% before Tuesday's open.

• Samsung Electronics reported a 19-fold increase in Q2 operating profit, yet its stock and rival SK Hynix both slid, indicating investors believe upside from chip demand is already reflected in valuations
• Microsoft announced 4,800 job cuts in its gaming division following a roughly 20% drop in the company's stock price
• Oil prices rose to nearly $73 per barrel for Brent crude after Iran reportedly fired missiles at commercial ships in the Strait of Hormuz

Chinese AI startup DeepSeek is developing its own AI chip for inference computing, aiming to reduce dependence on Nvidia and Huawei processors. The chip development, which began about a year ago, marks a major strategic shift for China's AI champion and reflects broader efforts by global AI companies to control their hardware. DeepSeek has increased hiring of chip-design engineers and is engaging with external partners, though the effort remains at an early stage.

• The chip targets inference computing (generating user responses) rather than training, the fastest-growing segment of AI demand as applications expand beyond model development
• DeepSeek's move could challenge Huawei, which currently holds roughly half of China's $50 billion AI chip market, though Huawei already faces competition from Alibaba and Baidu developing their own chips
• Success faces significant hurdles: designing competitive AI chips typically requires years and substantial capital, while U.S. export controls bar Chinese companies from advanced overseas foundries and high-bandwidth memory components

Nasdaq 100 futures came under pressure on Tuesday after a global semiconductor selloff, despite Samsung posting record profits. Major chip stocks fell sharply across Asian and European markets, with Samsung down 9% and SK Hynix losing over 10%, threatening the Nasdaq 100's 50-day moving average support at 29,590.

• Semiconductor stocks sold off uniformly across all major markets: Samsung fell 9% despite record profits, SK Hynix dropped over 10%, and losses extended to Tokyo Electron, Taiwan Semiconductor, ASML, and other global chip names
• Nasdaq 100 futures are trading below their short-term retracement zone and approaching critical 50-day moving average support at 29,590; a break below could trigger further selling toward 28,512 and potentially 26,208
• The selloff reversed Monday's tech-led rally where AMD gained 6.6% and Western Digital ran 7%, with the Dow having just closed above 53,000 for the first time

Ukrainian drones struck Russia's largest oil refinery in Omsk, western Siberia, nearly 2,500 kilometers from Ukraine, demonstrating Kyiv's enhanced long-range capabilities. The attack, using upgraded Fire Point drones, occurred ahead of a crucial NATO summit and following Russian missile strikes on Kyiv that killed at least 19 people. President Trump held separate calls with Putin and Zelenskyy, stating a resolution is 'getting closer than people realize.'

• The Omsk refinery has a capacity of over 21 million metric tons of crude oil per year, making it Russia's largest gasoline producer hit by Ukrainian forces to date
• Ukraine has intensified attacks on Russian oil facilities in recent months to undermine Putin's war funding as the conflict extends beyond four years
• The strike comes on the eve of a two-day NATO summit in Turkey with 32 countries attending, where Trump is expected to meet with Zelenskyy