Meta Jumps on AI Cloud Plan While Chip Rout Drags Nasdaq Lower

Wall Street ended a choppy July 1 session mostly lower after the Dow briefly touched an intraday record, then reversed as a broad semiconductor selloff—led by Intel, AMD, and Micron—dragged the Nasdaq down 0.66%. Meta surged nearly 9% after announcing it will sell excess AI computing capacity through a new cloud business, while Barclays warned that June's record $150 billion in U.S. equity inflows signal crowded positioning and heightened downside risk. Investors now await the June nonfarm payrolls report on Thursday for further direction on Fed policy.

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Meta pops 9% as it builds cloud business to sell excess AI compute capacity. Meta Platforms closed up about 8.8% on news that it is developing a cloud business to monetize idle AI infrastructure, potentially recouping billions in capex. CNBC confirmed the report, which signals a shift from pure advertising revenue to a diversified cloud offering. 1 2

Chip stocks tumble; Intel, AMD, Micron fall as Bank of America flags bubble risk. The Philadelphia Semiconductor Index sank 6.3% as profit-taking hit names like Micron (-10.6%), Intel (-9%), and AMD (-6.9%) after a strong first-half run. Bank of America warned of growing bubble risk in AI-related stocks, urging valuation discipline. 2 3 4

Barclays warns record $150 billion June inflows signal FOMO crowding, not conviction. According to Barclays, the $150 billion in U.S. equity inflows last month—the largest ever—were driven by long-only funds chasing performance, leaving the market fragile and vulnerable to a reversal as buyback blackout windows and thin summer liquidity compound the risk. 5

Nike beats Q4 earnings but tariff refunds mask persistent China weakness. Nike reported fourth-quarter results that topped estimates, but analysts noted that the beat was partly aided by tariff refunds, while struggles in China remained a drag. The stock moved modestly in after-hours trading. 6