Investor Michael Burry, famed for his prescient bets against the housing market before the 2008 financial crisis, has drawn a direct line between South Korea's massive stimulus package and what he believes could be the final stage of the current stock market rally. In comments made Tuesday, Burry suggested that the market's positive reaction to the stimulus might actually be a warning sign, echoing his historical pattern of identifying market tops before they occur.
NVIDIA (NVDA) Dips Below 0
NVIDIA Corporation (NASDAQ:NVDA) closed at $197.58 on Tuesday, down 1.25%, slipping below the psychologically significant $200 mark. The decline came as the Philadelphia Semiconductor Index dropped 6.3%, though NVIDIA managed to limit its losses relative to the broader sector. Investor concerns over artificial intelligence demand and energy consumption continue to weigh on the stock, which has hovered near $200 for the past week. With a market capitalization near $4.82 trillion, a $1 move in the share price equates to approximately $24.4 billion in market value. Analysts remain divided, with some calling the stock a "screaming buy" while others warn of increasing competition in AI capacity.
Meta Platforms (META) Surges on AI Cloud Plans
Meta Platforms (NASDAQ:META) shares rallied 8.8% to $612.91 in premarket trading, adding roughly $127.6 billion to its market cap for a new total of $1.572 trillion. The surge followed a Bloomberg News report that Meta is preparing to launch a new AI cloud compute rental service. The move pressured rivals CoreWeave Inc. (NASDAQ:CRWV) and Nebius Group N.V. (NASDAQ:NBIS), which fell 13.9% and 17%, respectively, as investors interpreted Meta's push into AI cloud as a threat to third-party providers. Meta also raised its 2026 capital expenditure forecast to $125-$145 billion to accelerate data center buildout amid rising AI demand. The Nasdaq will remain closed on July 3 for Independence Day.
ASX 200 Edges Higher; UK M&A Heats Up
Australia's ASX 200 index finished slightly higher, buoyed by a rally in gold mining stocks. National Australia Bank (NAB) rose following an analyst upgrade, while Wesfarmers (WES) declined after a downgrade citing near-term concerns. In the UK, merger and acquisition activity is picking up as large companies streamline operations and foreign buyers target British assets for their cash flows. Citi UK CEO Tiina Lee described the UK M&A market as "on fire," noting that deal numbers fell 12% last year but total value increased 12% as buyers focused on larger, higher-quality targets. The London Stock Exchange's AIM market saw new listings from BRCK Group, Caledonian Holdings, and others.
NSE IPO Faces Valuation Scrutiny
India's National Stock Exchange (NSE) is moving toward its initial public offering amid debates over valuation. The exchange holds a near-monopoly in India's cash equities and derivatives markets, supported by network effects that sustain its dominant liquidity position. Growth is tied to increasing financialization in India, where investor numbers and mutual fund flows are rising but still lag developed markets. Revenue streams from data, index fees, and co-location services contribute to its stability.
Market Outlook
Dow futures slipped early Wednesday as investors awaited the latest jobs report, which could influence Federal Reserve policy expectations and global capital flows. Oil prices traded cautiously, reflecting broader risk aversion across asset classes. The S&P 500 and Nasdaq also faced pressure as traders braced for data that could reshape the outlook for interest rates and economic growth.
