Bitcoin Remains in Focus as Volatility Builds 07/07/2026

 


HOT stories for today

Market wrap:

• U.S. stocks started the new trading week higher, with the S&P 500 and Nasdaq advancing after Friday’s Independence Day holiday. The S&P 500 gained 0.72% to close at 7,537.43, while the Nasdaq Composite rose 1.12% to 26,121.16. The Dow Jones Industrial Average added 155.84 points, or 0.29%, finishing at a record close of 53,055.91 after also touching an intraday high. Technology shares led the advance, with the Technology Select Sector SPDR ETF (XLK) rising nearly 2%. Western Digital climbed 7%, while Dell Technologies gained more than 4% after President Donald Trump promoted the company’s computers from the White House following the opening bell.

• Bitcoin rebounded Monday after President Donald Trump voiced support for crypto, helping sentiment recover after an earlier selloff. The token rose roughly 1.8% after Trump was asked whether digital assets could be included in Trump accounts, responding with comments that investors viewed as supportive of the sector. Earlier in the session, Bitcoin fell more than 2% after a regulatory filing showed that Strategy recently sold about $216 million worth of the cryptocurrency, briefly pressuring crypto-linked names. Microsoft slipped nearly 1% after announcing plans to cut 4,800 jobs, equal to about 2.1% of its workforce. In Asia, markets traded lower Tuesday, with South Korea’s Kospi leading losses after falling 7.53%. Japan’s Nikkei 225 declined 1.89%, as investors monitored rising geopolitical tensions, including renewed Russian attacks and pressure on NATO as Trump headed to Turkey. Investors now turn to Tuesday’s U.S. trade deficit data, with no major earnings releases scheduled.

Stock Rally Faces Rising Bubble Concerns

• Wall Street strategists are warning that soaring stock prices and increasingly optimistic earnings forecasts are pushing the U.S. market toward bubble territory, particularly in AI-driven technology stocks. While the S&P 500's forward price-to-earnings ratio has eased as earnings estimates have climbed, some analysts argue the apparent improvement masks unusually elevated profit expectations. According to Panmure Liberum, the S&P 500's Shiller CAPE ratio has risen to around 41, approaching levels last seen during the dot-com bubble. The firm argues the market is no longer just expensive on valuation alone, but is also relying on exceptionally strong earnings growth that may prove difficult to sustain. S&P 500 companies are currently expected to deliver more than 23% earnings growth in the second quarter, extending a streak of seven consecutive quarters of double-digit profit expansion. 
• Analysts caution that the AI investment boom, led by hyperscalers such as Microsoft, Alphabet, Amazon, Meta and Oracle, has fueled exceptionally strong earnings expectations. However, as these companies continue investing heavily in AI infrastructure, margins could come under pressure and earnings growth may begin to normalize. BCA Research chief strategist Peter Berezin warned that earnings bubbles have historically been difficult to identify before they peak, but once they do, equity markets have often experienced declines of 30% to 50%. Similar patterns were seen ahead of the 2008 financial crisis and in previous boom-and-bust cycles across semiconductors and other cyclical industries. Despite growing valuation concerns, U.S. equities remain near record highs, leaving investors closely focused on the upcoming earnings season to determine whether corporate results can continue to justify the market's elevated expectations.

Stocks on the move:

• Dell Technologies (DELL): Shares rose 4.4% after gaining as much as 9% intraday, with trading volume reaching 7.1 million shares. Trump disclosed 24 Dell trades in 2025, including 16 purchases and 8 sales, totaling roughly $300,000 to $1 million.
• TeraWulf (WULF): Shares gained 4.9% after the company announced a 20-year lease tied to roughly $19 billion in contracted revenue and about 401 MW of critical IT load, with initial capacity expected in the second half of 2027 and full ramp by early 2028.
• SoundHound AI (SOUN): Shares climbed 6.3%, hitting $7.09 intraday on heavy volume of 28.1 million shares, as Stocktwits sentiment remained strongly bullish.
• Cava Group (CAVA): Shares fell about 7% as valuation concerns weighed on restaurant momentum.
• Rocket Lab (RKLB): Shares dropped 7% as space-stock momentum cooled.
• Rivian Automotive (RIVN): Shares jumped 7% after deliveries topped expectations and the company raised guidance.

Watchlist: MDELL, MSFT, AMD, WDC, ORCL, RIVN, SOUN, COIN,

Key Economic Events Today:

EST time

07:00 am: USD FOMC Member Bowman Speaks
08:15 am: USD ADP Weekly Employment Change
08:30 am: USD Trade Balance


Earnings

No earnings today!


The TEFS Analyst team wishes you a successful day!