Hi there, this is your daily ☕️ Finpresso.
In today's newsletter:
📉 AI euphoria meets its first real stress test
🔵 A tech giant reshapes the Dow's makeup
🏭 US factory layoffs flash a familiar warning sign
🛢️ Russia eyes a sweeping fuel export restriction
Plus: 🌍 4 macro news, 🏢 4 corporate news, 💰 6 deal flow, and 📑 3 research & reports.
📰 Top News
| 📉 AI euphoria meets its first real stress test LINK |
- Micron and Sandisk led a sharp selloff in U.S.-listed chip stocks Tuesday, described by Mizuho's Daniel O'Regan as a "Tech Wreck" and by Wedbush's Daniel Ives as a "gut check moment" in the AI trade.
- Qualcomm fell about 7%, while chip equipment makers Applied Materials, Teradyne and Lam Research dropped more than 7%, following South Korean declines led by a more than 12% drop for memory-chip makers SK Hynix and Samsung Electronics.
- Ives cited added nervousness on the memory-chip trade ahead of Micron's earnings due after Wednesday's close, while O'Regan pointed to a third-party report on memory pricing, a SpaceX "unwind," and chip stocks having doubled in less than six months.
| 🔵 A tech giant reshapes the Dow's makeup LINK |
- Alphabet will replace Verizon in the Dow Jones Industrial Average, S&P Global said Tuesday, expanding mega-cap technology's presence in the 30-stock blue-chip average.
- The Google parent's A shares, trading under the ticker GOOGL, will take the spot ahead of Monday's trading open, joining Nvidia, Amazon, Apple and Microsoft, with shares rising about 1% after the bell Tuesday.
- S&P Global said the inclusion bolsters the Dow's exposure to artificial intelligence, cloud infrastructure and advertising, though Alphabet on Monday closed its worst stock-market day in more than a year, underperforming the Nasdaq and other tech mega-caps.
| 🏭 US factory layoffs flash a familiar warning sign LINK |
- U.S. factory job cuts in June ran at their highest level since 2009, excluding the Covid-19 pandemic, as manufacturers reduced headcount over concerns about global demand and rising costs, S&P Global reported Tuesday.
- The manufacturing flash PMI rose to 55.7 from May, beating the Dow Jones consensus of 54.8, but Chris Williamson said the gain came largely from inventory rebuilding amid supply fears, with supply delays growing more widespread.
- Manufacturers indicated job cuts in three of the past four months, though manufacturing employment has risen by 23,000 in 2026 per the Bureau of Labor Statistics, as Williamson flagged worries over demand sustainability and escalating raw materials costs.
| 🛢️ Russia eyes a sweeping fuel export restriction LINK |
- Russia is weighing a complete ban on diesel exports, Deputy Prime Minister Alexander Novak said Tuesday, as authorities work to stabilize a domestic fuel market hit by refinery disruptions, rising prices, and supply shortages.
- The move marks a shift from Novak's June 4 stance at the St. Petersburg International Economic Forum, where he said there was no immediate need for a ban; oil companies have already increased fuel production to maximum levels.
- Russia currently restricts diesel and marine fuel exports by non-producers, while gasoline and jet fuel exports are banned entirely; a broader diesel ban could affect supplies across Europe, Africa, and parts of Asia reliant on Russian fuel through indirect trade channels.
🌍 Macro News
- UK private sector activity fell to a 14-month low in June. LINK
- The US DOE committed up to $17.5 billion to revive nuclear reactor supply chains. LINK
- EU lawmakers voted to begin final negotiations on a digital euro law. LINK
- South Korea's KOSPI plunged 10%, triggering a market-wide trading halt. LINK
🏢 Corporate News
- FedEx beat earnings expectations in its final quarter including its freight unit. LINK
- Constellation Energy and Walmart signed a long-term nuclear power purchase agreement. LINK
- UK Apple users may share £3 billion in a lawsuit over iCloud pricing. LINK
- Oracle cut 21,000 jobs, nearly 13% of its workforce, citing AI adoption. LINK
📈 Stocks
💰 Deal Flow
- Ballard Power Systems agreed to acquire hydrogen producer GeoPura for $515 million. LINK
- US rival FirstCash agreed to acquire UK pawnbroker Ramsdens for £206 million. LINK
- North Shore Bank agreed to acquire 1895 Bancorp in an all-cash deal. LINK
- Crypto trading app Fomo raised $75 million in a Series B round. LINK
- Quantum Computing Inc. LINK
- Crypto analytics startup Allium raised $40 million in a Series B round. LINK