Data from the Investment Company Institute revealed robust net inflows into U.S. stock mutual funds and exchange-traded funds during the second quarter of 2026. Investors poured capital into equities as the rally gained momentum, signaling a renewed appetite for stocks despite mixed returns through the period. The strong demand underscores a shift toward risk assets amid a generally positive market environment.
SpaceX Joins Nasdaq-100: A Brief Boost?
Space Exploration Technologies (SpaceX) is poised to join the Nasdaq-100 index just 15 trading days after its record-breaking initial public offering on June 12. This inclusion will compel index funds, including the $481 billion Invesco QQQ ETF, to acquire up to $7 billion in SpaceX shares. With only 281.2 million shares available for trading, demand is expected to be intense. However, historical patterns suggest that price surges following index additions are often short-lived, as investors typically buy ahead of the event and sell into it, leading to a subsequent decline. While SpaceX may experience a quick pop on July 7, the sustainability of such gains remains uncertain.
Capcom Leads Japanese Growth Stocks
Capcom (TSE:9697) stands out among Japanese growth equities, boasting high insider ownership and a 27.9% net margin. The company, known for franchises like Resident Evil and Monster Hunter, generates most of its revenue from digital content and delivers a solid return on equity. Its price-to-earnings ratio sits at 25.2x. Management has flagged risks from external funding needs, governance changes, and a reduction in dividend guidance. Similarly, Micronics Japan (TSE:6871) is noted for growth in semiconductor testing equipment but trades at a steep 42x P/E, with comparable concerns about funding and governance. These picks highlight alignment between management and shareholders amid cautious global sentiment.
Raspberry Pi Appoints New CFO
Raspberry Pi Holdings plc announced that Tim Powell will become its chief financial officer and director on October 16, 2026. Powell previously served as CFO at Alpha Group International, where he led its move to the London Stock Exchange Main Market and inclusion in the FTSE 250. He also held senior finance roles at London Stock Exchange Group, contributing to the $27 billion Refinitiv deal. Raspberry Pi has shifted its focus from hobbyists to enterprise clients. Current CFO Richard Boult will step down at the end of October. Chair Martin Hellawell emphasized Powell's experience in scaling businesses and financial discipline as critical for the company's next phase.
Market Outlook: Volatility Drops, Growth Sectors in Play
U.S. stock futures traded higher on Monday, with S&P 500 and Nasdaq 100 futures gaining 0.4% to 1.2%. This follows mixed global growth reports, as private sectors in Europe and Asia hovered near flat. The CBOE Volatility Index (VIX) slipped 2%, indicating increased investor risk appetite. Small caps and cyclical names attracted more interest, though defensive plays like utilities and real estate remained active amid shifting sentiment. Sandisk, Teradyne, and KLA declined ahead of earnings and media reports. Traders are eyeing fresh PMI data, central bank meetings, and OPEC developments for new direction as the economic picture stays uncertain.
Wheaton Precious Metals: Undervalued or Risky?
Wheaton Precious Metals (TSX:WPM) is back in focus after a recent acquisition yielded just a 3% internal rate of return at US$70 silver, while silver currently trades below US$60. Shares have performed well over the long term, gaining 33.86% in the past year and 225.89% over five years. Analysts raised their fair value target to CA$259.31 from CA$190.41, suggesting the stock may be 35% undervalued relative to Tuesday's close of CA$168.27. This call is supported by an improved top-line outlook, higher margins, and richer P/E multiples for growth names. However, risks from new competitors, regulatory changes, and metal price volatility persist. With a current P/E of 29.9x, above its peer group, the stock leaves little room for negative surprises if growth falters.
Other Notable Developments
The National Stock Exchange will begin investor roadshows on July 17 ahead of its planned September IPO, aiming to attract institutional buyers. AMP chief economist Shane Oliver warned of a volatile FY26-27 for Australian equities, citing persistent inflation, geopolitical risks, and concerns about an AI-driven bubble, but still expects positive returns. India's VIX fell to 11.92, a near four-month low, signaling reduced market fear and cheaper short-term protection, with the Nifty 50 gaining 0.48%.
