We're recapping last Friday's (June 26) mini market analysis.

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Transcript

23 segments

0:00

The market bottomed at the end of the

0:01

first quarter and has staged a very

0:03

powerful rally. As of last Friday, the

0:05

S&P was up 15% [music] and Nasdaq was up

0:09

23% for the second quarter alone.

0:12

However, this week the market,

0:14

especially Nasdaq, started to correct.

0:16

Fears about AI continue to haunt poor

0:19

software stocks and consulting

0:21

companies. In software, Salesforce,

0:24

Adobe, and Intuit were down 18%, 19%,

0:28

and 39%

0:30

respectively. In consulting, Gartner and

0:32

Accenture were down 18% and 35%

0:36

respectively. The hyperscalers, Amazon,

0:39

Meta, Oracle, Google, and Microsoft were

0:41

all down on Thursday. Apple also was

0:43

down as it raised prices on its MacBook

0:46

and iPad because of higher memory chip

0:49

prices. AI hyperscalers have become

0:52

very, very capital-intensive [music]

0:54

businesses and there is no end in sight

0:56

for how much capital they will need.

Interactive Summary

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The market experienced a powerful rally in the second quarter, with the S&P up 15% and Nasdaq up 23%, after bottoming in the first quarter. However, this week saw a correction, particularly in Nasdaq, driven by ongoing fears surrounding AI. This negatively impacted software companies like Salesforce, Adobe, and Intuit, as well as consulting firms such as Gartner and Accenture, all of which saw significant declines. Hyperscalers including Amazon, Meta, Oracle, Google, and Microsoft also faced a downturn, and Apple's stock fell after raising prices on its MacBooks and iPads due to increasing memory chip costs. The report highlights that AI hyperscalers are becoming increasingly capital-intensive with no clear limit to their investment needs.