Meta reportedly plans an AI cloud push and jumps 9%, but a hard chip selloff keeps the broader direction cautious ahead of tonight’s jobs report.
Wall Street opened the second half of 2026 with a split personality. The Dow touched a fresh record before fading, while the Nasdaq slipped as chip stocks came under pressure.
The story of the day was Meta. Shares rose 8.8% after a report that the company plans to build cloud infrastructure and sell access to AI computing power and models. Under the surface, though, semiconductors took a beating.
Tonight's Watchlist 📈
| Stock | Movement | What to Watch |
|---|
| META | +9% (Jul 1 close) | Entered AI cloud business. Watch for follow-through and official details. |
| MU | -8%+ (Jul 1 close) | Chip profit-taking. Watch if the pullback extends or bounces. |
| NVDA | Down with the group | Caught in the chip selloff. Watch support and AI sentiment. |
| AVGO | Down with the group | Part of the chip pullback. Watch for a sector rebound. |
| MSFT | +3% (Jul 1 close) | Held up; now faces a new cloud rival in Meta. |
| AAPL | +2% (Jul 1 close) | Defensive mega-cap, helped hold the S&P 500. |
Tonight's Catalysts 🧨
Meta (META) rose 8.8% after a report that it plans to sell access to AI computing power and models. If confirmed, the move would put Meta closer to the cloud infrastructure race now dominated by Amazon, Microsoft, and Google.
For investors, the story is not only competition. It is also about monetization. Meta has been spending heavily on AI and data centers, so an external cloud business could help show that AI capex can become a revenue source, not only a cost.
Still, the official details matter. The market will want to know the scale, pricing, margins, and how much of Meta’s compute capacity can actually be sold to outside customers.
Profit-taking hammers chip stocks
Semiconductors were the other side of the coin. Micron (MU) led the retreat, falling more than 8% as investors booked profits after a strong first-half rally. Nvidia (NVDA) and Broadcom (AVGO) slid with the group.
For now, this looks more like profit-taking after a fast run than a change in the AI story. But after such a strong move in chip names, the sector is more sensitive to positioning, valuation, and any sign that buyers are getting tired.
Mega-cap tech cushions the fall
Big software and hardware held the line. Microsoft (MSFT) rose about 3% and Apple (AAPL) added roughly 2%. That rotation into mega-caps kept the S&P 500 close to flat even as chips dragged.
Pre-Market Pulse 📊
Futures point slightly lower this morning as traders stay defensive into the data. The June jobs report lands at 8:30 a.m. ET, pulled forward because of Friday’s holiday.
Two things matter at the open: whether the chip selloff extends, and whether Meta can hold its gain after yesterday’s 9% jump. A stronger jobs report could push yields higher and pressure growth stocks. A softer report could revive rate-cut hopes, but may also raise new questions about the economy.
Macro Note 📝
Tonight is all about the labor market. Economists expect around 115,000 new jobs and a 4.3% unemployment rate, after ADP showed 98,000 private jobs added in June.
The 10-year yield rose to around 4.47%, Brent eased to about $72, and gold held around the $4,000 area. If the jobs data surprises either way, rate expectations could move quickly.
Tonight is a two-sided market. Meta’s reported cloud push shows the AI trade may be broadening beyond chips, while the semiconductor pullback is a reminder of how far and how fast these names have run.
If you hold chip names, this is a moment to check position size rather than chase the move. If you have been watching Meta, tonight’s follow-through and the jobs data will say a lot about the market’s mood for July.
What stocks are you watching tonight?
