Memory Stocks Tumble | Meta's Cloud Ambitions | Korean Equities Slide | Nasdaq Pulls Back

Market Overview

Global markets focused on a sharp pullback in memory-related stocks on Wednesday. After leading the market higher throughout the year, memory chip names finally faced a wave of profit-taking. Micron Technology fell 10.57%, while SanDisk dropped 10.62%. Despite the selloff, both stocks remain among the year's strongest performers, with SanDisk having surged as much as 857% year-to-date and Micron's market capitalization previously surpassing the $1 trillion mark. AI infrastructure provider CoreWeave also declined more than 10% during the session.

The weakness in semiconductor shares weighed on major U.S. equity indexes. The Nasdaq Composite fell 0.66% to 26,040, the S&P 500 slipped 0.22% to 7,483, and the Dow Jones Industrial Average edged down 0.03% to 52,305.

In contrast, Meta Platforms surged 8.8% amid reports that the company is exploring a cloud computing business and may offer excess AI computing capacity to external customers.

Asian markets delivered mixed performances. China's Shanghai Composite gained 0.44%, while the Shenzhen Component Index declined 0.53% and the ChiNext Index fell 1.89%. Combined turnover across Shanghai and Shenzhen exchanges expanded to RMB 3.66 trillion. South Korea's KOSPI briefly plunged nearly 4% intraday as investors closely monitored the National Pension Service's portfolio rebalancing program scheduled to begin in July.

Economic data pointed to simultaneous cooling in both employment and inflation. U.S. private-sector payrolls, as measured by ADP, increased by only 98,000 in June, well below expectations. Meanwhile, the ISM Manufacturing PMI fell to 53.3. In Europe, Eurozone June CPI inflation eased to 2.8% year-over-year.

In commodities, crude oil prices retreated, with WTI crude falling 2.19% to $67.98 per barrel and Brent crude declining 2.44% to $71.14. Spot gold rose 0.57% to $4,031 per ounce, while the Japanese yen continued its depreciation, reaching its weakest level in roughly four decades.

Market OutlookU.S. June Nonfarm Payrolls Report in Focus

The U.S. June Nonfarm Payrolls report is set for release, drawing heightened attention after ADP employment data came in significantly below expectations. Investors will be watching closely to see whether official government figures confirm signs of a cooling labor market.

The combination of headline job growth, the unemployment rate, and wage growth will play a critical role in shaping expectations for monetary policy during the second half of the year, while also influencing near-term movements in Treasury yields and the U.S. dollar.

Volatility Returns to Memory Chip Stocks

Memory-related stocks suffered double-digit losses in a single session after an extended rally, highlighting mounting profit-taking pressure.

Fundamentally, AI-driven demand for memory remains robust. However, after extraordinary gains, capital rotation within the technology sector has accelerated. As a result, volatility could increase further in the coming weeks, making the balance between valuation expansion and underlying demand growth a key factor to monitor.

Key Events to Watch

• U.S. June Nonfarm Payrolls Report

• U.S. Initial Jobless Claims

• U.S. May Factory Orders and Durable Goods Orders

• Remarks from San Francisco Fed President Mary Daly