Yahoo Finance Live: Daily Market Coverage - July 7, 2026 3PM - 5PM (ET)
TL;DR
Chip stocks plunged into bear market territory following Samsung's quarterly results and fears of slowing AI infrastructure spending, while Wall Street debated SpaceX's $3 trillion valuation after its NASDAQ 100 debut and software names diverged positively from the semiconductor rout.
💾 Semiconductor Selloff & Market Rotation 3 insights
Samsung's record profits trigger chip crash
The memory maker's 19-fold profit increase beat estimates by only 6%, sparking a 22% decline in DRAM stocks over seven days and crushing Intel (-10%), Applied Materials (-8%), and Lam Research (-8%).
AI spending fears intensify globally
Investors worry hyperscalers may slow infrastructure investments while Chinese startup Deepseek develops custom AI inference chips, threatening Western semiconductor dominance and pushing the 30-year yield to 5.04%.
Software stocks decouple from hardware
As semiconductors entered bear markets, software names including Salesforce, ServiceNow, and Palantir gained 3% each, with the Mag 7 rising 9% versus a 12% decline in chip stocks since June 25.
🚀 SpaceX Public Debut & Valuation Debate 3 insights
NASDAQ 100 entry sparks immediate volatility
SpaceX shares dropped 6% upon index inclusion due to technical selling pressure, low float dynamics, and upcoming 20% share unlocks following its first earnings report.
Wall Street embraces trillion-dollar valuations
Over 80% of analysts issued buy ratings with an average $250 price target implying a $3.3 trillion valuation (45x sales), while Raymond James set an $800 target suggesting a $10 trillion market cap.
Analysts question massive TAM claims
NYU valuation professor Aswath Damodaran called SpaceX's claimed $28.5 trillion total addressable market 'fantasy,' though bulls view the stock as the 'infrastructure company of the 21st century' encompassing orbital AI and Starlink.
⚡ EV Sector Capital Raises & Competitive Shifts 3 insights
Tesla robotaxi rollout misses ambitious targets
The company launched limited service in Miami covering just three states rather than the promised 50% of U.S. population by end-2025, pushing meaningful revenue expectations to 2027 while remaining smaller than rival Waymo.
Rivian taps markets after 30% rally
The EV manufacturer announced a share offering to fund $8 billion in cash burn before expected 2028-2030 free cash flow generation, needing to reach 400,000 annual vehicle production versus current 65,000.
Legacy automakers retreat from EV commitments
As GM and Ford take write-downs and shrink EV ambitions, Canaccord Genuity suggests Rivian has a unique opportunity to capture abandoned market share and establish itself as the dominant non-Tesla American auto maker.
Bottom Line
Rotate exposure from hardware and chip stocks facing demand uncertainty into software and mega-cap tech names showing relative strength, while treating speculative AI infrastructure valuations with increased scrutiny as the market shifts from growth narratives to capital efficiency.
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