Today’s market setup is a little less comfortable for the AI trade. Chip stocks are under pressure as investors question valuations, Hormuz risk is back on the energy board, and Vertex’s $10 billion Crinetics deal shows biotech M&A still has a pulse.

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Futures at a Glance📈

Futures are mixed after the Dow’s record-setting push above 53,000, but chip weakness is back in focus overseas. Nasdaq names are feeling the pressure as Asian and European semiconductor stocks sell off, even after Samsung’s profit surge showed AI demand is still doing real work. Traders are also watching SpaceX’s Nasdaq-100 entry and this morning’s trade deficit data.

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What to Watch

Earnings (Premarket):
• No major premarket earnings scheduled

Earnings (Aftermarket):
• Penguin Solutions, Inc. [PENG]
• Enerpac Tool Group Corp. [EPAC]
• Kura Sushi USA, Inc. [KRUS]
• Saratoga Investment Corp [SAR]

Economic Reports:
• No major economic reports scheduled

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Market Pulse

AI Jitters Hit Asia After Samsung’s Blowout Forecast
Asian stocks tumbled after Samsung’s massive profit forecast still failed to calm AI valuation fears, with South Korean chip names leading the pullback. The market read is that investors still believe in the AI cycle, but they are no longer willing to pay any price for exposure.

Wall Street Looks for Fed Clues as Tech Wobbles
Investors are watching Fed minutes and early earnings signals after a strong quarter left the S&P 500 more dependent on profit confirmation. That puts the next few sessions in a cleaner test: rates need to stay manageable, and earnings need to prove the rally is more than AI multiple expansion.

AI & Semiconductors

Hedge Funds Keep Cutting Chip Exposure
Hedge funds sold tech hardware and semiconductor stocks for a fourth straight week, according to a Goldman Sachs client note cited by Reuters. That does not mean the AI trade is dead, but it does show institutional money taking profits before earnings decide which chip names deserve their premiums.

Ford Locks In Memory Supply With Micron
Micron and Ford signed a long-term semiconductor supply agreement for memory and storage platforms used in next-generation vehicles. The bigger takeaway is that AI data centers are tightening memory markets so much that automakers are moving early to protect their own chip supply.

Trade & Supply Chains

State AGs Push Back on New Forced-Labor Tariffs
A group of Democratic attorneys general opposed the Trump administration’s proposed tariffs tied to forced-labor enforcement concerns. For markets, the issue is less about one tariff line and more about another layer of trade uncertainty hitting companies already managing supply-chain reshoring, China exposure, and margin pressure.

Supply-Chain Pressure Finally Eases
The New York Fed said global supply-chain pressures eased in June, helped by improving shipping conditions after Middle East disruptions. That is a useful inflation relief signal, but the index remains elevated enough to keep logistics, energy, and trade policy on the market’s risk list.

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*This free resource is being sent by Zacks. We identify investment resources you may choose to use in making your own decisions. Use of this resource is subject to the Zacks Terms of Service.

*Past performance is no guarantee of future results. Investing involves risk. This material does not constitute investment, legal, accounting, or tax advice. Zacks Investment Research is not a licensed dealer, broker, or investment adviser.

Energy & Geopolitics

Hormuz Risk Comes Back Into Focus
Iran’s Revolutionary Guards reportedly fired missiles at commercial ships in the Strait of Hormuz, damaging two vessels without reported casualties. Oil has cooled from the panic phase, but this is a reminder that shipping risk can reprice quickly when the world’s key energy chokepoint is involved.

Saudi Arabia Cuts Prices, But Asia May Not Bite
Saudi Arabia’s latest oil price cut may still fail to pull in Asian buyers, with traders saying competing Gulf barrels remain cheaper. That points to a softer demand backdrop in Asia and keeps pressure on producers trying to defend market share without triggering a deeper price war.

Healthcare & Biotech

Vertex Makes a $10 Billion Rare-Disease Bet
Vertex Pharmaceuticals agreed to buy Crinetics Pharmaceuticals for about $10 billion, adding rare endocrine disease treatments to its portfolio. The deal is a clear sign that large-cap biotech is still willing to pay up for approved assets and late-stage pipelines that can diversify revenue beyond core franchises.

Generic GLP-1 Competition Keeps Building
The FDA agreed to review Hybio’s generic versions of tirzepatide, adding another potential future challenger to Eli Lilly’s obesity and diabetes franchise. The patent wall still matters, but the market is already looking ahead to how pricing, access, and copycat competition could reshape the next phase of the GLP-1 trade.

Trivia: Blockbuster had a chance to buy Netflix in 2000 and walked away. What was the asking price?

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Movers and Shakers

Crinetics Pharmaceuticals [CRNX]: Premarket Move: +99%

Crinetics surged after Vertex agreed to acquire the company for $85 per share in cash, roughly a 100% premium to the prior close. Oppenheimer downgraded the stock to Perform after the deal, saying the shares are now trading on acquisition dynamics rather than fundamentals, with the transaction expected to close this quarter.

Fiserv [FISV]: Premarket Move: +7%

Fiserv moved higher after major banks, including JPMorgan, Bank of America, Wells Fargo, and PNC, reportedly held early talks to buy one of its debit-card networks. Fiserv owns the STAR and Accel networks, and bank ownership of payment rails could help large lenders reduce exposure to federal debit-card fee caps.

Rivian [RIVN]: Premarket Move: −8%

Rivian dropped after the EV maker announced a fully underwritten public offering of 75 million Class A shares priced at $20.14 each. The offering overshadowed stronger preliminary Q2 numbers, including projected revenue of $1.55 billion to $1.65 billion and cash, equivalents, and short-term investments of about $5.3 billion.

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Everything Else

  • 🚀 The search for the next Mag 7 is already underway, as investors look for the companies most likely to lead when today’s giants stop carrying the whole market.

  • 🪖 Trump is putting NATO, Turkey, Russia, Ukraine, and defense spending back in the same pressure cooker as allies debate the security bill.

  • 🤖 Chinese AI models are forcing U.S. rivals to defend their pricing as OpenAI and Anthropic face a tougher cost fight.

  • ⚛️ Google-backed Proxima Fusion raised new funding as investors keep looking for the next big clean-energy bet.

  • 💾 Samsung estimated a 19-fold jump in second-quarter operating profit, beating expectations as AI demand keeps powering the memory rebound.

  • 💼 Microsoft joined the AI-driven tech layoff wave with 4,800 job cuts, showing the efficiency push is still biting.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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