Market
July 8, U.S. stocks opened lower with the Dow Jones off 1.0%, the S&P 500 down 0.6% and the Nasdaq slipping 0.4% as investors digested hawkish central-bank rhetoric and a busy earnings slate. Defensive positioning and rising Treasury yields weighed on sentiment while strength in select tech names cushioned the broader decline.
Kingsoft Cloud Holdings Ltd surged 11.7% after receiving a preliminary buy-out proposal, while Alibaba ADRs rallied 8.3% on a fresh $25 billion share-repurchase authorization. United Microelectronics climbed 4.9% on robust June sales, Western Digital added 4.3% after raising guidance on memory pricing, and Broadcom rose 2.5% on stronger AI-chip demand forecasts. On the downside, Palantir Technologies Inc. falls 4.3% following a broker downgrade, Meta Platforms, Inc. slips 1.6% amid an expanded EU antitrust probe, and Tesla Motors eases 1.2% as regulators opened a new safety investigation.
Elsewhere, VNET Group gains 5.2% on data-center restructuring chatter, GDS Holdings Ltd advances 4.7%, KE Holdings Inc. adds 3.2%, Vipshop rises 2.8% and Silicon Motion Technology appreciates 2.4% as renewed interest in Chinese internet and semiconductor names drives sector rotation.
News
Alibaba announces $25 billion buyback and beats quarterly sales estimates, sending shares up sharply. The e-commerce giant cited resilient domestic demand and cloud-computing traction. Management said the new authorization replaces its prior program and runs through 2028.
Kingsoft Cloud Holdings Ltd receives non-binding go-private proposal valued at $1.8 billion. The offer, led by founder Lei Jun and an investor consortium, boosted confidence in the company’s turnaround and ignited a double-digit early rally.
Western Digital lifts fiscal-year outlook as NAND pricing rebounds. Management now sees revenue up 12% versus prior 8%, citing stronger server and AI storage orders. Shares climbed on expectations of improved margins.
Broadcom raises full-year AI chip revenue forecast to $12 billion. The semiconductor firm highlighted accelerating hyperscale demand and tighter supply conditions. Investors welcomed the updated guidance despite broader market weakness.
United Microelectronics posts record June wafer sales, boosting ADRs. The Taiwanese foundry pointed to strength in automotive and industrial segments. Analysts said the print supports a second-half recovery in mature-node capacity utilization.
Palantir Technologies Inc. downgraded to “underweight” at Morgan Stanley, triggering a sell-off. The broker argued that AI hype is fully priced in and trimmed its price target by 20%. Shares fell as volume spiked to three times the 30-day average.
Tesla Motors slips after NHTSA opens new probe into Model Y power-steering complaints. The agency said it has received 40 reports of sudden steering loss. Investigators will assess the scope and potential recall implications.
Meta Platforms, Inc. declines as EU antitrust regulators widen investigation into advertising data practices. The expanded inquiry could lead to substantial fines and operational remedies. The company said it is cooperating fully.
GDS Holdings Ltd rallies on plans to spin off its Southeast Asia assets via Hong Kong IPO. The move aims to unlock value and reduce debt. Investors applauded the strategic shift toward a pure-play China data-center model.
Fed minutes show policymakers debating additional rate hikes, lifting Treasury yields. The prospect of tighter financial conditions pressured high-duration equities at the open. Traders now price a 60% chance of another 25-bp hike at the September meeting.
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