S&P 500 Holds Near Record as SanDisk's 80% Margin Forecast Sparks AI Memory Rally

S&P 500 holds near record, banks third weekly gain despite soft retail sales The S&P 500 closed Friday at 7,785.76, down 0.17% but just 0.4% below Thursday's record close of 7,798.99, marking its third consecutive weekly advance. Weak July retail sales (-0.6% vs. +0.1% expected) and a sharp drop in consumer sentiment to 51.0 raised economic concerns, while the 10-year Treasury yield rose to 4.688%. 1234

SanDisk's 80% margin forecast ignites AI memory rally across chip stocks SanDisk surged 35.4% after projecting an 80% gross-margin framework, signaling the NAND/flash cycle will stay tight longer than expected. The forecast reinforced the 'long shortage' AI memory narrative, lifting Samsung Electronics (+3.72%) and SK Hynix (+5.92%) and driving South Korea's KOSPI to a three-week high. 456

Palantir posts Q2 profit jump, raises 2026 guidance on defense AI demand Palantir reported Q2 2026 sales of $1.94 billion and net income of $1.06 billion, raising full-year revenue guidance to $8.15-$8.16 billion. A new agreement with Mercury Systems to automate defense supply chains deepens Palantir's ties to critical U.S. military production, though concentration risk in defense spending remains. 7

Tech funds see $4.62B outflow even as growth funds attract $8.78B inflow Technology funds recorded $4.62 billion in outflows through Wednesday, breaking a six-week streak of inflows, even as growth equity funds attracted $8.78 billion — the biggest intake since November 2024. The divergence signals investors remain selective about AI exposure despite the S&P 500's record run. 3

Applied Materials falls 5% despite beating guidance as AI expectations run high Applied Materials delivered above-consensus guidance but fell more than 5% after results failed to meet elevated AI-driven investor expectations. Broadcom also shed over 5%, while AMD bucked the trend with a 6% rally, highlighting the market's heightened sensitivity to semiconductor valuations. 2

Cencora raises 2026 EPS outlook as quarterly profit climbs 11% Cencora lifted its fiscal 2026 adjusted EPS guidance to $17.75-$17.95 after Q3 revenue rose 5.1% to $84.8 billion and operating income climbed 29%, boosted by pharmaceutical distribution growth and the OneOncology acquisition. The company accelerated capital returns, repurchasing $1 billion of stock. 8

Plug Power gains 6.4% on strong Q2 but faces steep 34% H2 sales hurdle Plug Power shares rose 6.4% to $2.32 after Q2 revenue of $178.3 million beat consensus by 11.4% and the company raised its 2026 growth forecast to 15%-16%. However, hitting the target requires each H2 quarter to deliver roughly 34% more revenue than Q2, leaving little room for customer delays. 9

Liquidia swings to Q2 profitability on surging YUTREPIA revenue Liquidia reported Q2 revenue of $171.68 million, up from $8.84 million a year earlier, and turned a prior net loss into net income of $74.72 million. Despite the strong results, the stock fell 17.5% as investors weigh YUTREPIA concentration risk and reimbursement dynamics. 10

SEC reportedly planning framework for tokenized stocks and assets The SEC is reportedly preparing to release a framework for tokenized assets, potentially enabling crypto versions of favorite stocks. The move could bridge traditional equities and digital assets, though details and timeline remain unclear. 11