WS #11162

The dominant signal in this window is Meta's announcement of a new cloud business to sell excess AI compute capacity, causing META shares to pop 8% and reclaim $600, reaching a $1.5T market cap. This development is corroborated by CNBC, Bloomberg, and multiple social media sources, marking a significant shift in the AI infrastructure narrative. The move is bearish for AI compute rental peers like CoreWeave (CRWV) and SharonAI (SHAZ), which are under pressure as the market reassesses demand for third-party GPU capacity. Meanwhile, the EIA weekly petroleum data showed a larger-than-expected crude draw (-3.775M vs -2.9M est) and a gasoline draw (-2.333M vs -0.95M est), supporting oil prices and energy sector strength. The ISM Manufacturing PMI came in at 53.3, below the 53.9 consensus, indicating a slight cooling in manufacturing expansion but still in growth territory. Fed Chair Warsh's comments at Sintra emphasized Fed independence and a focus on inflation, with no clear signal on July rate action, maintaining the current policy stance. Geopolitically, Ukrainian drone strikes on Russian oil refineries are intensifying, with multiple sources (AP, Al Jazeera, social media) reporting hits on around 20 sites, potentially exacerbating Russia's fuel crisis and supporting oil prices. The Trump crypto conflict-of-interest story continues to circulate but is not new. Overall, the market is digesting Meta's cloud pivot as a positive for META but negative for AI compute competitors, while energy markets are supported by inventory draws and geopolitical supply risks.