Daily Brief - July 03, 2026 (Morning)

 ## Pre-Market Overview U.S. equity futures are trading higher this morning, reflecting a cautiously optimistic tone following softer-than-expected U.S. jobs data. The June jobs report showed slower hiring growth, which has eased concerns about aggressive Federal Reserve rate hikes. This has lifted risk appetite, with futures on major indexes like the S&P 500 and Nasdaq indicating modest gains ahead of the open. Overnight, Asian markets rebounded strongly, led by a 5% jump in South Korean stocks after a turbulent week driven by AI-related volatility. The semiconductor sector showed signs of stabilization, helping to lift regional sentiment. European markets extended their recent rally, with the STOXX 600 on track for its best week in over a month amid easing inflation pressures and hopes for improving Eurozone growth. The ECB’s Lagarde left the door open to an early exit from rate hikes, adding to the positive mood. Key overnight developments include Meta Platforms signing a $6.5 billion AI chip manufacturing deal with Samsung, Amazon’s satellite internet rival Leo surpassing 390 satellites, and renewed geopolitical calm around the Strait of Hormuz, which is helping oil prices stabilize. These factors set the stage for a session focused on AI chipmakers, tech stocks, and energy names. ## Top Stories Moving Markets - Meta Platforms inks $6.5 billion AI chip deal with Samsung Meta has reportedly tapped Samsung to manufacture AI chips in a deal valued at $6.5 billion. This follows Samsung’s recent win with Tesla and signals growing demand for AI hardware. The news boosts **$META** and **$SSNLF** (Samsung), supporting the semiconductor supply chain. Investors will watch for how this deal impacts Meta’s AI ambitions and Samsung’s revenue outlook. - Amazon’s Leo satellite network nears initial service launch Amazon’s Starlink competitor, Leo, now has over 390 satellites in orbit after a recent Atlas V launch. The company expects to begin initial internet service this year, intensifying competition in satellite broadband. This development is positive for **$AMZN** as it diversifies its business beyond e-commerce and cloud computing. - Soft U.S. jobs data eases Fed rate hike fears June’s jobs report showed slower hiring growth, which has reduced market expectations for aggressive Fed tightening. This underpins the rally in futures and supports risk assets, especially growth and tech stocks. Traders will monitor upcoming economic data for confirmation of this easing trend. - Stellantis Italy production rises 13.7% in H1 2026 Stellantis reported a significant production increase in Italy, signaling operational strength despite recent quality concerns. However, the stock is under pressure due to an HSBC downgrade citing rising recalls. This mixed news will keep **$STLA** in focus today. - Michael Burry’s bearish bets on Micron and Caterpillar Michael Burry has taken short positions in **$MU** and **$CAT**, calling Micron a “capital destroyer” and expressing skepticism about Caterpillar’s outlook. This contrasts with some analyst views bullish on AI-driven demand. These high-profile shorts could add volatility to these names. ## Stocks to Watch Today **$META** - $6.5B AI chip manufacturing deal with Samsung boosts growth outlook. **$SSNLF** - Samsung benefits from AI chip deal wins with Meta and Tesla. **$AMZN** - Amazon’s Leo satellite network surpasses 390 satellites, eyes initial service launch this year. **$MU** - Michael Burry shorts Micron amid concerns over peak cyclical margins and valuation. **$CAT** - Shorted by Michael Burry; analyst debate ongoing over AI infrastructure demand. **$STLA** - Italy production up 13.7% but downgraded by HSBC over quality issues. **$NVDA** - Data not available, but remains a key AI chip player amid sector volatility. **$DELL** - Downgraded; investors advised to lock in profits amid valuation concerns. **$CLEV** (Cleveland-Cliffs) - Downgraded as bullish conviction fades. **$IDEX** - Strong end-market demand supports growth but valuation caution remains. **$PLTR** (Palantir) - Business booming but stock down over 30%, signaling potential disconnect. **$TSLA** - Tesla’s Chinese suppliers rise on strong Q2 delivery figures. ## Sector Setup - **Technology:** Positive momentum driven by AI chip deals (Meta-Samsung) and Amazon’s satellite service progress. However, some caution around memory stocks like Micron due to bearish bets and valuation concerns. - **Automotive:** Mixed signals as Stellantis production rises but downgrade and recall concerns weigh. Tesla supplier strength supports EV-related names. - **Materials/Metals:** Downgrades in Cleveland-Cliffs and concerns over cyclical peaks suggest caution. - **Financials:** Bank of America raises Stoxx 600 price target on hopes for Eurozone growth, supporting European financials. ## Economic Calendar & Fed Today’s calendar is light with no major U.S. economic releases scheduled. The market will continue digesting the June jobs report and await further Fed commentary. Barclays expects an “extended” interest rate hold by the Fed, reinforcing the current cautious optimism. ## Crypto & Commodities - Bitcoin is holding above $61,850, up 0.58%, supported by softer U.S. jobs data reducing rate hike fears. - Ethereum gained 2.15% to $1,735, reflecting renewed crypto market interest. - Oil prices remain stable amid easing Middle East tensions and improving supply outlook, though Citi forecasts Brent could slide to $60 by year-end. ## Trading Game Plan - Focus on AI-related tech stocks, especially **$META**, **$SSNLF**, and **$AMZN**, as chip demand and satellite internet developments drive momentum. - Monitor semiconductor stocks like **$MU** and **$NVDA** for volatility due to mixed analyst views and high-profile shorts. - Watch automotive sector for reaction to Stellantis production growth vs. downgrade and Tesla supplier strength. - Be cautious on materials and metals stocks amid downgrades and peak cyclical margin concerns. - Keep an eye on crypto for signs of sustained rebound following recent ETF inflows and softer rate hike expectations. - No major economic data today, so focus on company-specific news and geopolitical developments for market direction. - Upcoming earnings to watch include key semiconductor and tech companies later this week, which could confirm or challenge current sector narratives.