WS #11181

The data window shows a significant sell-off in semiconductor stocks, with MU down 6.7%, ARM -4.6%, INTC -4.0%, AMD -3.5%, and NVDA -2.3%, driven by profit-taking after a strong Q2 and concerns over valuation. The VanEck Semiconductor ETF fell 4% from its all-time high. This is partially offset by a bullish development for Meta (META), which is building a new cloud business to monetize excess AI compute capacity, validating AI infrastructure demand and supporting NVDA, AMD, and other AI-related names. On the macro front, US ISM Manufacturing PMI for June came in at 53.3 (below the 54.0 estimate), with Prices Paid dropping sharply to 73.0 from 82.1, suggesting easing inflation pressures. ADP employment change missed at 98K vs 120K expected. Fed Chair Warsh, speaking at the ECB forum, reiterated that inflation is too high and offered no hint of a rate cut, keeping the hawkish stance intact. In geopolitics, the US-Iran talks continue amid threats of resumed conflict, while Strait of Hormuz shipping has surged to 10 million barrels per day with US military support, a counter-signal to oil supply disruption fears. BlackRock's private credit fund CEO Phil Tseng is exiting, highlighting stress in private credit markets. Bending Spoons IPO rallied over 10% above its $29 price.