US stocks opened the second half on a mixed footing Wednesday, with the Dow Jones Industrial Average inching near record territory before retreating slightly, while the Nasdaq Composite slipped as investors rotated out of mega-cap tech and digested fresh commentary from Federal Reserve Chair Kevin Warsh on the path of inflation and rates.

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Market wrap: mixed start to H2

• The Dow Jones Industrial Average finished roughly flat, down .03%, after briefly touching a new record intraday as gains in select industrial, financial, and energy components offset tech softness.
• The S&P 500 dropped by .22%, but was somewhat supported by cyclicals and value-oriented sectors even as growth and high-multiple tech came under pressure.
• The Nasdaq Composite declined .66%, weighed by profit‑taking in AI leaders and a cautious reaction to Fed communication, reinforcing the sense that big tech may be entering a digestion phase after a powerful first-half run.

For investors, the tape signaled a nuanced handoff into the back half of 2026: equity indices remain supported by resilient earnings and steady growth, but leadership is broadening beyond the AI complex as markets re-price the odds of further tightening.

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Macro & Fed: Warsh tries to thread the needle

Fed Chair Kevin Warsh used a closely watched policy forum to argue that upside inflation risks have “eased somewhat” but remain uncomfortably above the Federal Reserve’s 2% objective, keeping additional rate hikes squarely on the table if progress stalls. Recent labor data showing robust job openings and firm wage dynamics have reinforced the case for maintaining a restrictive stance for longer, with futures markets now pricing a slower and shallower easing cycle than they anticipated earlier in the year..

At the same time, Warsh acknowledged growing signs of policy fatigue, noting that tighter financial conditions, a softer housing impulse, and tentative cracks in consumer credit warrant a more data‑dependent approach rather than pre‑committing to a preset hiking path. For markets, the key takeaway is that the Fed appears content to keep rates elevated while watching the lagged impact of past hikes filter through, rather than rushing either to cut or to tighten aggressively, which helps anchor the front end of the curve but leaves longer‑dated yields sensitive to each incremental inflation print.

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Sector moves and leadership rotation

• Technology & communication services: Large‑cap tech and AI hardware names underperformed, with the Nasdaq’s decline reflecting rotation away from the year’s most crowded leadership. Investors appeared to fade some of the strongest first‑half winners ahead of a dense Q2 earnings calendar and amid concern that higher‑for‑longer policy could pressure valuation multiples.
• Financials and cyclicals: Bank and broker‑dealer shares caught a bid on the back of a steeper yield curve and the prospect that a still‑resilient economy will support credit quality and fee pools, while industrial and materials stocks benefited from ongoing evidence of steady global demand.
• Energy and commodities: Crude oils prices hovered just below 68 dollars per barrel, leaving the energy complex broadly supported but not exuberant, as investors weigh Middle East geopolitical risks against a modestly cooling global growth outlook. Meanwhile, gold close above below 4,000 dollars per ounce as the firmer rate narrative and stronger dollar dented demand for defensive hedges.

This mix of sector outcomes underscores a market that is still constructive on growth but increasingly selective, rewarding cash‑generative cyclicals and high‑quality financials while forcing investors to be more valuation‑sensitive in high‑beta growth and AI narratives.

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Single‑stock drivers: META, SpaceX and Lime

• Meta Platforms (META): Shares surged as much as about 9% after the company announced a new push to monetize and resell excess AI compute capacity through a cloud‑style offering, effectively positioning Meta as both a hyperscale AI consumer and an infrastructure supplier. The strategy builds on its recent multiyear agreements to secure advanced GPU capacity and aims to improve returns on capital‑intensive data center investments by creating a recurring revenue stream from third‑party AI workloads. For investors, the move reinforces the idea that META is evolving from a pure‑play digital ad platform into a broader AI infrastructure and services business, potentially supporting multiple expansion if execution is strong.
• SpaceX (SPCX): A high‑profile tech analyst initiated coverage of SpaceX with an Outperform‑style rating and a 190 dollar price target, arguing that the company’s integrated launch and satellite broadband model provides a durable competitive moat and a multi‑trillion‑dollar total addressable market over time. While SpaceX is not yet publicly listed, the call is likely to further fuel investor enthusiasm for space‑economy adjacencies and could have read‑through for publicly traded suppliers and partners in launch hardware, satellite components, and ground infrastructure ecosystems.
• Lime (LIME): Newly public micromobility operator Lime opened trading at 27 dollars per share following its IPO, which was priced at a discount to that level and framed by management as having “landed at the right moment” given supportive risk appetite and improving unit economics. The deal’s reception may be viewed as a litmus test for investor appetite toward consumer‑facing, growth‑oriented listings after a multi‑year drought in high‑beta IPO activity, and early trading will be closely watched for signs that the window is re‑opening for similar capital‑intensive platform stories.

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Positioning takeaways for investors

• Expect more two‑way macro volatility: With the Fed signaling patience but not victory, each incremental inflation, jobs, and wage print will carry outsized influence on both yields and equity multiples, arguing for maintaining a balanced risk posture and avoiding one‑way bets on imminent cuts.
• Lean into quality within cyclicals and financials: As leadership broadens beyond the AI complex, high‑quality banks, insurers, and industrials with strong balance sheets and pricing power may offer attractive risk‑adjusted exposure to a still‑resilient nominal growth backdrop.
• Stay selective in AI and tech: META’s cloud‑style AI compute initiative highlights that the AI narrative is shifting from pure infrastructure build‑out to monetization and services, favoring platforms that can capture recurring, differentiated revenue streams over commodity hardware exposure. Investors may want to tilt toward companies with clear pathways to cash flow from AI, rather than simply scale in parameter counts or capex alone.

VP Watchlist Updates

Amwell® (NYSE: AMWL)

Amwell® (NYSE: AMWL) a leading provider of a comprehensive SaaS-based software platform for technology-enabled healthcare, closed at $9.37, +2.74%.

Eupraxia Pharmaceuticals Inc. (EPRX)

Eupraxia Pharmaceuticals Inc. (EPRX, $6.71, +1.51%), a clinical-stage biotechnology company leveraging its proprietary Diffusphere™ technology designed to optimize local, controlled drug delivery for applications with significant unmet need, announced (May 5) the first Eosinophilic Esophagitis Endoscopic Reference Score (EREFS) data from its ongoing Phase 1b/2a part of the RESOLVE trial evaluating EP-104GI for the treatment of eosinophilic esophagitis (“EoE”). These data were also presented at the ongoing Digestive Disease Week (“DDW”) conference in Chicago. “The EREFS is an important, validated visual index of severity of EoE disease in the esophagus of patients. It measures edema, rings and strictures and other visible markers of disease often associated with symptoms. Today’s data demonstrated improvement in two key outcomes with EP-104GI in the treatment of EoE: first, that a full injection protocol of 20 injections resulted in more pronounced improvement than a protocol with fewer injections and less coverage area within the esophagus; second, with the higher number of injections, a consistent response in both the inflammatory and fibrotic sub scores of EREFS was observed,” said Dr. James A. Helliwell, Chief Executive Officer of Eupraxia. “This EREFS data being reported at DDW is consistent with the improvements we have seen in EoE symptoms and tissue health (EoEHSS) and suggests improvement in inflammation, fibrosis and the associated narrowing of the esophagus.”

Modular Medical, Inc. (NASDAQ: MODD)

Modular Medical, Inc. (NASDAQ: MODD, $4.68, +4%), a leader in innovative, patient-centric insulin delivery, today (June 30) announced that the first patients have completed onboarding and training and are now actively using the Pivot™ tubeless insulin patch pump in real-world settings. This milestone marks the transition of the Pivot pump from development into active patient use and represents a significant step in Modular Medical’s commercialization strategy. The Company will now begin collecting real world utilization data and user feedback to support broader adoption and continued product deployment optimization.

MODD announced ( June 26) that the Pivot™ tubeless insulin patch pump is now shipping to physician offices for training. Upon completion of training, these pumps will be presented to potential patients in the next few days and weeks. The Company intends to expand the roster of practices that offer Pivot over the coming months. This is another significant milestone in the deployment of Pivot. Modular Medical looks forward to updating the market when these first patients are using the pump to deliver insulin. The Pivot pump is purpose-built for adults with diabetes on daily injections who have faced cost, complexity, and usability barriers with traditional pump systems. This group represents an estimated 70% of insulin-dependent adults who remain on multiple daily injections, a multi-billion-dollar opportunity within the diabetes technology market.

MODD announced (June 24) that the Pivot™ tubeless insulin patch pump is now commercially available. This marks the start of real-world patient use, and the Company’s transition to a commercial-stage medical device company. As only the second fully electronic, tubeless insulin pump available in the United States, Pivot is designed to make pump therapy simpler to learn and easier to live with. Its removable two-part design and 3 mL reservoir, intuitive interface, and flexible, wearable form factor support everyday activities, such as showering and sports, with no battery recharging required – all while maintaining clinical accuracy and connectivity. “Reaching commercial availability is a transformational milestone that marks Modular Medical’s transition from a development-stage company to a revenue-generating commercial business,” said Jeb Besser, Chief Executive Officer of Modular Medical. “As only the second fully electronic tubeless pump on the U.S. market, Pivot is positioned to serve a large, underserved ‘almost-pumper’ population. With first shipments beginning this week, we are focused on disciplined execution, as we scale adoption and seek to build long-term value for patients and shareholders.”

On (June 4) the launch of PivotPump.com, a patient-focused website designed to support individuals seeking a simpler path to insulin pump therapy. This launch follows the Company’s receipt of U.S. Food and Drug Administration (“FDA”) clearance in April 2026 for its Pivot™ insulin delivery system. The FDA clearance represents a significant milestone in Modular Medical’s strategy to expand access to insulin pump technology, particularly among individuals historically underserved by existing solutions. The Company remains on track for commercial launch in the fall of 2026. Pivot is designed for people living with diabetes who rely on daily insulin injections, as well as those who have encountered technological, usability, or cost-related barriers with traditional pump systems. The system emphasizes simplicity and ease of use for the patient and full access to clinical information for the clinician to reduce adoption friction. The PivotPump.com website provides accessible, educational content on insulin pump therapy and highlights the Company’s focus on real-world usability and supporting patients in evaluating and adopting pump-based diabetes care.

Similarweb Ltd. (NYSE: SMWB)

Similarweb Ltd. (NYSE: SMWB, $6.50, +7.50%), a leading digital data and analytics company powering critical business decisions, announced (June 15) that it has surpassed $300 million in Annual Recurring Revenue (ARR) and signed two multi-year enterprise contracts, each representing seven-figure ARR commitments. Collectively, these contracts represent approximately $47 million in Total Contract Value to be recognized over the next three years and were signed during the second quarter of 2026.

NVIDIA (NVDA)

NVIDIA (NVDA) closes at $197.58,-1.25%.

Rocket Lab Corporation (Nasdaq: RKLB)

Rocket Lab Corporation (Nasdaq: RKLB, $100.07), a global leader in launch and space systems and Iridium Communications Inc. (Nasdaq: IRDM, $54.85, +24.21% over the last 5-days) a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, announced (June 29) they have entered into a definitive agreement under which Rocket Lab will acquire Iridium. Rocket Lab will acquire all the outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction. This represents an enterprise value for Iridium of approximately $8.0 billion.

The InterGroup Corporation (NASDAQ: INTG), a diversified holding company with interests in hospitality, real estate, and marketable securities. InterGroup consolidates its majority‑owned subsidiary Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District hotel and related facilities, closed at $46.

The Sources

1. Yahoo Finance – “Stock market today: Nasdaq dips, Dow and S&P 500 rise as markets weigh Kevin Warsh’s remarks”
   https://finance.yahoo.com/markets/live/stock-market-today-nasdaq-dips-dow-and-sp-500-rise-as-markets-weigh-kevin-warshs-remarks-224748322.html
2. CNBC – “Live: Dow closes little changed after touching record; Nasdaq slides to start July”
   https://www.cnbc.com/2026/06/30/stock-market-today-live-updates.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
3. Yahoo Finance – “Lime opens at $27 a share, IPO happened at the right moment, CEO says”
   https://finance.yahoo.com/markets/stocks/article/lime-opens-at-27-a-share-ipo-happened-at-the-right-moment-ceo-says-162509539.html
4. Yahoo Finance – “Tech bull Ives initiates SpaceX with outperform rating, $190 price target”
   https://finance.yahoo.com/markets/stocks/article/tech-bull-ives-initiates-spacex-with-outperform-rating-190-price-target-145826109.html
5. Yahoo Finance – “Inflation risks eased, Fed chair says”
   https://finance.yahoo.com/economy/policy/articles/inflation-risks-eased-fed-chair-195646286.html
6. CNBC – “Meta pops 9% as company makes cloud push to sell excess AI compute capacity”
   https://www.cnbc.com/2026/07/01/meta-stock-cloud-ai-compute.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard