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Here’s what’s happening in the stock market today:
The stock market is showing modest gains today as Wall Street edges higher, AI rally losing steam amid Middle East tensions and profit-taking after historic run. 📊⚖️ S&P 500 rose 0.36%, closing at 7,542.76 (+27.42 pts); Dow Jones gained 0.29%, Nasdaq fell 0.03%. Chip stocks hit rocky patch as investors wrestle with high valuations and AI capex boom questions. Gold at $3,146.60 (+1.04%), Brent crude surged to $78.68/barrel on US-Iran Hormuz blockade rival claims. Treasury yield near 4.44%. Fed expected to hold in July, hike in September on 4% inflation. Investors brace for earnings week amid geopolitical risks. 🛢️💰
Major Indices Performance 📊
S&P 500 rose 0.36%, closing at 7,542.76 (+27.42 pts), tech pressure outweighed gains.
Dow Jones Industrial Average gained 0.29%, closing steady, cyclical support steady.
Nasdaq Composite slipped 0.03%, closing steady, chip stocks under pressure.
Market Movers 🚀
Chip stocks hit rocky patch amid high valuations, AI capex boom questions.
SK Hynix dropped 8.2% early as investors booked profit after 12.8% Nasdaq debut surge.
Gold at $3,146.60 (+1.04%), Brent crude at $78.68/barrel on Hormuz blockade tension.
Tech stocks under pressure as investors evaluate Middle East tensions, take profits after historic run.
Semiconductors, small-caps led rebound while software and energy struggled.
Key Events Driving the Market 🗞️
AI rally losing steam amid Middle East tensions, profit-taking after historic run.
US-Iran Hormuz blockade rival claims surged oil to $78.68, jabbing geopolitical risks.
Fed expected to hold in July, hike in September after 4% inflation; job data fuels rate hike fears.
Earnings week: Investors brace for corporate results amid geopolitical risks and tech volatility.
Chip stocks pressured amid high valuations, AI capex boom questions.
Investor Sentiment 👀
Overall, mood is cautious-tentative as tech pressure and geopolitical risks outweigh cyclical gains. Volatility from chip swings; investors brace for earnings amid Middle East tensions. 🐂⚖️
SpaceX Is Overvalued. Here's the Smarter Play.
At $1.75 trillion, SpaceX is now worth more than Coca-Cola, Disney, and Netflix combined — a company with no public earnings track record and a $135 price tag set by the people selling it to you.
Do the math. To justify that valuation, SpaceX would have to grow into one of the largest companies on Earth before you ever see a profit. History is brutal on day-one IPO buyers who pay that kind of premium. Most are underwater within a year.
There's a smarter way to ride the wave. Our analyst found 3 stocks positioned to ride the SpaceX boom — without the bubble pricing. You get the tickers, entry guidance, price targets, a bonus 4th pick, and a 3-phase buy/sell playbook.
The window before Wall Street rotates in is closing.
TRADE OF THE DAY:
WMT
Name: Walmart Inc.
Symbol: WMT
Current Price: Approximately $114.65
Trade
Sell to Open: 1 WMT Aug 7, 2026 121/126 Call Vertical
Total Credit Received: $58.00
Credit per Contract: $58.00 (for one contract covering 100 shares)
Direction: Bearish (expects WMT to stay below the break-even level)
Probability of Profit (PoP): 83.2% (as provided)
Potential ROI:
Max Risk (Loss): $442.00
ROI: ($58.00 ÷ $442.00) × 100 ≈ 13.1%
Trade Explained in Simple English:
You’re entering a call credit spread by selling the $121 call and buying the $126 protective call, both expiring on August 7, 2026. You receive $58.00 upfront, and the trade is profitable if Walmart stays below the $121.58 break-even price through expiration. Your maximum profit is limited to the $58.00 credit received, while your maximum loss is capped at $442.00 if WMT finishes above $126.00 at expiration. This is a bearish strategy because it benefits from the stock remaining below the short call strike.
Wall Street Highlights:
News Beyond the Numbers
Citigroup's turnaround gained momentum after the bank posted stronger-than-expected quarterly results, fueled by broad-based growth in trading, services, and investment banking. Read More
JPMorgan Chase delivered its strongest earnings beat in five years, with CEO Jamie Dimon pointing to resilient consumers, booming investment banking, and accelerating AI-related business activity. Read More
Wall Street banks are enjoying one of their busiest dealmaking periods in years, with major IPOs and mergers driving a surge in investment banking fees. Read More
IBM suffered a sharp selloff after warning that customers delayed large technology deals, raising fresh concerns about enterprise software spending.
Read MoreInvestors are turning their attention to the next wave of earnings as companies including Morgan Stanley, BlackRock, Johnson & Johnson, and PNC Financial prepare to report today. Read More
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