The stock market, and technology shares in particular, fell Wednesday after a strong performance in the previous session. Stocks moved lower as Federal Reserve Chairman Kevin Warsh declined to say whether an interest-rate hike would be announced at the central bank's meeting in July.
Meta Platforms advanced 8.2% on a report it plans to build a cloud business to sell excess artificial-intelligence computing capacity. Meta hopes to generate revenue from selling excess computing power to third parties, Bloomberg reported. Meta didn't respond to a request for comment from Barron's.
CoreWeave and Nebius both sank more than 10% as the Meta news put pressure on the so-called neoclouds that are also in the business of selling AI computing power.
Chip stocks and AI-adjacent shares also were getting hit as some air appeared to come out of the recent rally.
Western Digital declined 4.7%, Applied Materials fell 4.6%, and Lam Research dropped 5.9%. Micron fell 6.5%. Intel, Nvidia, and Marvell Technology each traded more than 2% lower.
Shares of the optical networking company Corning sank 10%, making it the worst S&P 500 component. Memory chip maker Sandisk also was near the bottom of the S&P 500, falling 7.6%.
Advanced Micro Devices fell 3.7% to $559.41 after surging 7.7% Tuesday to close at a record high and with a market capitalization of $947 billion. Shares are unlikely to hit a $1 trillion valuation Wednesday.
SpaceX dropped 4.7% to $162.94. Wedbush analyst Dan Ives launched coverage of SpaceX with a Buy rating and a $190 price target late Tuesday. Twelve analysts cover SpaceX, according to FactSet. Seven rate the shares Buy and the average analyst price target is about $240.
Nike stock was down 2.2% after the retailer reported fiscal fourth-quarter earnings late Tuesday. The company beat earnings and revenue estimates but analysts' expectations were low. Nike's earnings of 72 cents a share also included a benefit of 52 cents a share tied to the expected recovery of import tariffs.
Alcoa stock fell 9% after the aluminum producer agreed to buy Australian miner South32's aluminum, bauxite, and alumina assets for $4.1 billion. South32 shares closed 9.7% higher in Sydney trading.
FMC declined 1.2% after the agricultural sciences company said Belgian industrial group Tessenderlo has agreed to make a minority equity investment of $400 million.
Bloom Energy moved 1.5% higher to $307.73 after the renewable energy and power supplier announced its artificial-intelligence infrastructure partnership with Brookfield Asset Management has expanded to $25 billion. Evercore ISI raised its Bloom price target to $350 from $295 and maintained an Outperform rating on the shares.
While chip stocks were falling, some software stocks were moving higher. ServiceNow gained 3.8% to $103.05 and Salesforce advanced 4.2% to $163.23. Guggenheim upgraded both ServiceNow and Salesforce to Buy, with price targets of $125 and $228, respectively. The firm wrote the belief that AI will kill off software is a "hallucination" and that the "Armageddon scenario" is "misaligned with reality."
Oklo rose 1.4%. The nuclear start-up said its isotope test facility passed its final safety analysis, putting it on track to start its first reactor this month. Oklo aims to use the Groves facility to build a domestic supply of high-value radioisotopes used in medicine and manufacturing.
General Mills rose 8.9%, leading the S&P 500 for the trading session. The company reported better-than-expected fourth-quarter profit and said it was focused on organic sales growth in fiscal 2027 and beyond.
Write to Callum Keown at callum.keown@dowjones.com and Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
July 01, 2026 10:10 ET (14:10 GMT)
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