Stock Funds Rallied 17.1% in a Quarter That Made Investors' Heads Spin
An IPO rocket, a war rally and a new Fed gave investors plenty to think about. Plus: Our latest Financial Flashback, to the options-dating scandal 20 years ago.
Market News
Earnings Are A Figment Of Accountants' Imaginations. Exiting Equity Would Be A Mistake
S&P 500 earnings have risen by 60% over the past three years, leading to fears of a bust similar to the one that followed the dot-com bubble. The two eras are not the same.
The Hopium Around The AI Narrative Is Fading
The AI-driven rally appears to be peaking, with recent negative developments challenging the sustainability of the AI narrative. OpenAI's struggles—pricing pressure, delayed IPO, and political maneuvering—raise concerns about the viability of massive AI infrastructure investments.
Weekly Commentary: Our Semiquincentennial Gilded Age
The Semiconductor Index returned 88% during Q2, true to 2026's 'Expect the Unbelievable' theme. The precariousness of the AI arms race has the attention of global policymakers, with the Bank of International Settlements directly addressing the issue in their 2026 Annual Report released this week.
When it comes to beating the stock market, no news really is good news
You can beat the stock market by becoming a more discerning consumer of financial news, according to a recently published study. The key is learning how to differentiate between news about a stock that is truly news (“pure news”) and news that only appears to be news but isn't really, (“old news”).
The World Cup sends prediction market volumes soaring to record highs
The FIFA World Cup was expected to drive up trading volume on prediction market platforms, and that bet paid off in June. Prediction market platform Kalshi did more than $30 billion in trading volume last month, while Polymarket volume hit a record high of $10.8 billion.
Jackie DeAngelis: This is a 'MASSIVE GROIN PUNCH' in US' AI race against China
'The Big Money Show' discusses China's AI advancements, highlighting the threat and implications to the United States' dominance in the AI race.
What Moved Markets This Week
Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m.
US stocks see biggest exit since March: is Wall Street's rally at risk?
US stock funds saw their biggest weekly exit since March, raising fresh questions about the strength of Wall Street's rally. Investors pulled $17.2 billion from US stock funds in the week through July 1, according to Bloomberg, citing Bank of America strategists led by Michael Hartnett and EPFR Global data.
Wall Street's big test: 5 factors investors can't ignore next week
Wall Street will enter the July 6-10 week with less room for error after a choppy start to the second half. The S&P 500 is still sitting near record territory, but the market is carrying a tricky mix of stretched valuations, a cooling labour market, fragile oil prices and fresh pressure in semiconductor stocks.
Continental to sell ContiTech unit to Lone Star Funds for $4.6 billion
Continental said on Saturday it had signed an agreement to sell its ContiTech plastics and rubber business to private equity firm Lone Star Funds for €4 billion ($4.57 billion), plus potential performance-based components of up to €250 million in subsequent years.
Looks Like Trump Team Simply Maximizing Frannie IPO
Fannie Mae and Freddie Mac are positioned for a potential exit from conservatorship, with IPO timing linked to revised capital requirements. Trump's executive order directs FHFA to consider lowering ERCF capital requirements, aiming to maximize Treasury's equity stake and improve mortgage affordability. Key Treasury and FHFA personnel changes signal a strategic push to recalibrate capital frameworks, aligning with broader regulatory easing for banks.
Ouster: Funded For Physical AI Scaling
Ouster, Inc. raised $200M, boosting pro forma cash to ~$375M, positioning for large-scale customer physical AI ramp-ups and inventory needs. The company has several customers with public disclosures of plans for rapid expansion for 10x to 100x unit growth. Management targets 30–50% annual growth, with potential for explosive acceleration as Physical AI applications proliferate.
Is Kevin Warsh hawkish - or preparing the ground for rate cuts?
Deepak Mehra from the Commercial Bank of Dubai talks about how new Fed Chairman Kevin Warsh might be using 'deliberate ambiguity' in his statements as a way of reforming forward guidance. However, he notes that Warsh would want to build up credibility before unfolding his agenda for the Fed to potentially lower rates.
Q2 Recap: Historic Rebound Amid Balanced Risks
Second-quarter markets delivered a powerful rebound, with participation extending beyond U.S. large-cap technology. The AI capex cycle has emerged as a dominant force shaping economic growth, corporate earnings, and market returns.
S&P 500 Snapshot: Best Week In Two Months
The S&P 500 experienced its best week in two months, finishing up 1.7%. The index is currently sitting 1.7% below its record close reached on June 2nd, 2026.
Small Stocks Are Having Their Biggest Run in Decades
The Russell 2000 has climbed some 22% in the first six months of the year.
Largest US power grid PJM escalates emergency actions to avoid blackouts
Largest U.S. power grid operator PJM said on Friday it was under a federal alert to cut electricity consumption across its territory as it battled generator outages, massive overloading on its transmission lines and a surge in air conditioning use from prolonged sweltering heat.
Mega-IPOs Creating A New Playbook For ETFs
Mega-IPOs like SpaceX are causing changes in the ETF market. Providers are creating different types of ETFs tied to the IPOs, often before the IPO even happens.
U.K., Italian, Japanese Fighter Jet Venture Wins $6.14 Billion Contract
U.K.'s BAE Systems, Italy's Leonardo and Japan's Mitsubishi Heavy Industries secured a contract funded by the three nations to develop a new stealth fighter jet.
