Investopedia Markets News (all except PF)

• Morgan Stanley analysts said they believe investor sentiment around software stocks has become “too negative” lately, amid concerns about AI-driven disruption.
• The analysts suggested a number of software stocks could be primed for gains, with “more opportunities than investors currently believe.”

A number of software stocks have had a tough time lately. That could leave some high-profile names primed for a rebound, according to Morgan Stanley.

The S&P 500 software industry index has dropped more than 25% from its highs last October as many investors trimmed their holdings in the sector amid worries about AI-driven disruption. America’s largest software exchange-traded fund, the iShares Expanded Tech-Software Sector ETF (IGV), is down 13% this year so far, compared to the S&P 500’s close to 10% gain over the same period.

“We think the market has become too negative,” Morgan Stanley analysts wrote in a note to clients Tuesday, saying that they believe “there are more opportunities than investors currently believe.” Here are some of their top ideas for ways investors could play a rebound in the sector.

Worries about AI have weighed on the software sector this year. Morgan Stanley is suggesting some of these fears could be overblown.

Microsoft (MSFT), which has seen its stock lose nearly a fifth of its value year-to-date, making it the weakest-performing Magnificent 7 stock of 2026 so far, was one of Morgan Stanley’s picks. The software giant was the “highest quality” choice Morgan Stanley screened, based on its competitive moat and near-term growth potential, according to the analysts. Their price target of $600 for the stock would suggest 50% upside from Tuesday’s close and is a bit above the analyst consensus compiled by Visible Alpha around $550.

Morgan Stanley highlighted cybersecurity providers Palo Alto Networks (PANW), CrowdStrike (CRWD), and Cloudflare (NET) as well. Unlike Microsoft, these stocks have surged in recent weeks, marking a rare bright spot in the industry, with all three stocks hitting record highs earlier this months as worries about AI risks grow. “Cybersecurity should benefit across a multi-phase AI investment cycle,” the analysts wrote, anticipating that growing adoption of AI and attacks using the technology would raise the need for security services.

The analysts also said they see data platform Snowflake (SNOW) benefitting from the need to “modernize data and prepare for AI workloads,” along with ServiceNow (NOW) and Datadog (DDOG), identifying them as “enterprise workflow and observability leaders.” Commerce platform Shopify (SHOP), which is down nearly 25% for 2026, rounded out the list on expectations its AI assistant “Sidekick” could give the company “one of the shortest journeys to monetizing AI.”

• A new survey finds that workers feel wages didn’t keep pace with inflation this spring.
• Federal data show that since 2021, average hourly pay has risen by about the same amount as inflation.

The vast majority of American workers say their pay is losing ground to the cost of living, though federal data show it is more of a draw.

A new Monster survey says 93% of workers report their pay isn’t keeping up with rising costs. Just 7% of workers report receiving an inflation-related pay increase this year, according to the 2026 Cost of Living Report, the online job board Monster published Monday.

“This is the third consecutive year workers that have said their wages are falling behind the cost of living,” said Vicki Salemi, a career expert for Monster.

How workers feel about their pay shapes what they spend, whether they job huntand how hard they push for a raise.

Workers said savings are absorbing the difference they see between price and pay growth. About 85% said they’ve dipped into savings and 42% said they’ve spent a significant share of what they’d set aside.

Those surveyed said they’re also trying to make up the difference by cutting nonessential spending. Meanwhile, more than one-third are leaning on credit or loans, and a similar portion reported reducing retirement contributions.

“We’re seeing people cut spending, use savings, and actively look for higher pay, but most aren’t seeing results,” Salemi said in a written statement.

Even while pay raises have pulled ahead of inflation most months over the last few years, data from the Bureau of Labor Statistics shows, there’s good reason many might not be feeling it.

Increases in wages have outpaced prices in most months since the spring of 2023. But as inflation spiked this spring, pay lost ground in April and May. In June, the average hourly earnings hit $37.64, up 3.5% over the year. The Consumer Price Index rose by about the same amount.

Monster says job hunting has picked up sharply: three-quarters say they’re looking for a higher-paying role, more than last year. But landing a new role isn’t proving easy—58% say it’s harder to find a job as companies cut costs.

While government data doesn’t show as bad an overall picture as Monster’s survey shows workers feel, they’re not imagining the price pressures either. The Iran war continues to cut deep into budgets, with gasoline costing more than a quarter more than a year earlier as of June. The broader energy index rose 15.7%.

Those looking to switch jobs for a pay raise continue to see larger wage gains, with job switchers gaining 4.1% over the year through June, compared with 3.4% for the year, according to the Federal Reserve Bank of Atlanta.

• Elon Musk’s space, AI and connectivity company announced it will report second-quarter earnings on August 4.
• SpaceX’s stock rose more than 3% on Tuesday, snapping a seven-day losing streak, but remains well below its IPO price.

SpaceX is back to defying gravity.

Shares of SpaceX (SPCX) rose more than 3% on Tuesday to snap a seven-day losing streak after the company set a date—mark your calendars for August 4—for its first quarterly earnings report as a public company. The stock remains below its mid-June IPO price of $135.

With a market capitalization of around $1.6 trillion, SpaceX remains among the most valuable U.S. companies, though its value is a far cry from the near-$3 trillion market cap it had a few days after the IPO.

SpaceX’s inclusion in a smattering of major indexes means that its performance will be reflected in retirement portfolios, and upcoming lock-up expirations could put downward pressure on the stock.

The arrival of SpaceX’s earnings date also puts another company catalyst in view: the first wave of lock-up expirations that would free up more than $116 billion worth of stock. Employees and early insiders would be free to trade some 911.5 million shares on the second full trading day after SpaceX’s first earnings report, or August 6.

SpaceX’s stock climbing could also trigger a share price-based lock-up. If the stock price is at least 30% higher than its IPO price, or $175.50, for “at least five of the ten consecutive trading days” ending on and including the earnings release date and the second full trading day following it, 455.8 million additional shares would be eligible for trading, according to company filings.

Alphabet and Tesla Are Due to Report Results Wednesday Afternoon

• Alphabet and Tesla are slated to report Q2 earnings Wednesday afternoon, kicking off what’s expected to be another round of strong reports for the Magnificent Seven.
• The Mag 7 stocks have underperformed the S&P 500 this year amid uncertainty about the return on their AI investments.

The Magnificent Seven stocks may be more “Lag 7” than “Mag 7” this year, but their profits are still pretty magnificent.

The Mag 7—Nvidia (NVDA), Alphabet (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA)—have grown faster than the rest of the S&P 500—or the “Other 493”—in every quarter since the end of 2022, and estimates suggest that was likely the case last quarter, too. In the coming weeks, the Mag 7 are expected to report earnings grew about 31% in the second quarter, a slowdown from 63% in Q1 but still ahead of the Other 493’s 23% growth.  

Tesla and Google-parent Alphabet will be the first of the group to post Q2 results when they report after the bell Wednesday. Analysts expect the search and cloud computing giant had another strong quarter, with revenue projected to increase about 20%, driven by a 65% increase in cloud revenue. The report will set expectations for cloud computing competitors and fellow Mag 7 members Microsoft and Amazon, both of which are slated to report next week. 

The Magnificent Seven earned their nickname in 2023 when their earnings and stocks soared as the economy and the rest of the stock market struggled. The tables have turned in the stock market this year, but the tech giants have continued to grow faster than most of the S&P 500.

Mag 7 stocks accounted for the vast majority of the S&P 500’s rise in recent years, but the group has lagged the broader market in 2026 amid uncertainty about the return on their huge AI investments. The Roundhill Magnificent Seven ETF (MAGS) is up less than 2% since the start of the year, trailing the S&P 500’s nearly 10% return. 

The combination of stock weakness and earnings strength has many of the Mag 7 stocks trading at relatively undemanding valuations. “I don’t think there’s a problem paying 24 times forward earnings for a company that can grow high-margin revenue at roughly 20%,” said David Miller, CIO at Catalyst Funds, of Alphabet on Tuesday. “From a price-to-earnings-growth perspective, those numbers work.”

But the Mag 7’s earnings growth may not be Wall Street’s focus when they report in the coming weeks. Revenue and earnings “are likely to not matter as much as the amount of capital spending completed in the quarter and the guide for the rest of the year,” wrote Wolfe Research analysts on Tuesday. The hyperscalers—Alphabet, Microsoft, Amazon, Meta, and Oracle (ORCL)—reported strong results across the board last quarter, but their stocks mostly languished as investors focused on capex increases. 

Hyperscalers are expected to spend upwards of $700 billion on capital expenditures this year, and much of that total is earmarked for AI data centers. Those investments have caused their free cash flows to dwindle, and compelled several of them to tap debt and equity markets for fresh capital, increasing their exposure to fluctuating interest rates. 

Wolfe Research expects the hyperscalers in aggregate to increase their capex guidance again in the coming weeks. While that may pressure their stocks, it could reinvigorate the shares of semiconductor, memory and data storage suppliers, whose sales and earnings growth have been turbocharged by the AI data center buildout. After a torrid rally throughout the second quarter, memory and chip stocks have cooled off in recent weeks. Some market watchers say that’s created opportunities to own stocks expected to benefit from AI spending for years to come. 

“Nvidia is trading like a value stock,” said Nancy Tengler, CEO of Laffer Tengler Investments, on Tuesday. “You have to believe all the [AI] spending is going to stop tomorrow” to justify the stock’s forward price-to-earnings ratio of about 16x, said Tengler. 

• Mark Cuban said that more companies should offer stock-based compensation plans, a step that he believes would reduce economic inequality.
• Cuban said that Elon Musk created over 4,000 millionaires with SpaceX’s IPO—an example for CEOs, founders and entrepreneurs.
• Some 511 U.S. publicly traded companies had employee stock ownership plans as of 2023, according to the nonprofit National Center for Employee Ownership.

What can the U.S. do to narrow the chasm between the very rich and the very poor? One billionaire thinks he has the answer.

The solution, per Mark Cuban, Shark Tank investor and minority owner of the Dallas Mavericks, is more people owning “appreciable assets,” he said in a recent episode of the podcast “What it Takes” from Unmoderated News. Cuban’s point is that people who own stocks see their net worths rise when share prices do.

The billionaire—Forbes estimates Cuban’s net worth at $6 billion as of today—said: “The way you’re going to reduce income inequality for anybody who works with somebody is making sure they get shares of stock.” And he wants to see more companies offering their employees stock-based compensation plans.

The top 1% of people in the U.S. control much more of the country’s money than the bottom 50%—a yawning gap that has been growing for decades, according to Federal Reserve data.

Cuban said he has offered equity to employees at every company he ever sold, and referred to a New York Times report that SpaceX’s (SPCX) record IPO could make some 4,400 employees millionaires. SpaceX’s employee compensation program also inspired viral memes last month that imagine cafeteria workers and janitors as millionaires, and billionaires.

“So if you work at Tesla, if you work at SpaceX, when those stocks go up, your net worth goes up,” he said.

To be sure, SpaceX’s stock has fallen considerably below its IPO price, but shares in the company were gaining ground today and Wall Street analysts remain optimistic about potential upside.

Cuban said stock-based compensation programs should be voluntary, but that the U.S. government could incentivize more shops to roll out such programs with a lower tax rate.

According to the National Center for Employee Ownership, just 511 publicly traded companies out of thousands had such programs in 2023, the most recent year for which data is available.

What can be done for the folks who don’t work at companies that offer such plans? Cuban said: “Hopefully, if more people are seeing their net worth increase, then they’re spending more money. You know, they have a wealth effect, and that [will] impact other people as well.”

• Nebius shares surged Tuesday after Nvidia disclosed it’s built a 9.3% stake in the AI infrastructure provider.
• Nvidia first disclosed a small stake in Nebius in early 2025.

A vote of confidence from the chipmaker at the heart of the AI boom has Nebius stock soaring.

Shares of Nebius (NBIS) popped 19% to close just under $217 Tuesday, a day after Nvidia (NVDA) disclosed in a regulatory filing that it’s built a 9.3% stake in the Amsterdam-based AI infrastructure provider. Shares of Nvidia rose about 2%, on a day when semiconductor and other AI-related stocks led the major indexes higher. Coreweave (CRWV), a Nebius rival also backed by Nvidia, saw its stock jump 9%.

Nvidia and Nebius did not respond to Investopedia’s requests for comment in time for publication.

The backing of AI chip leader Nvidia could reinvigorate investors’ enthusiasm for Nebius, which has slipped from last month’s highs amid a broader pullback in the AI trade.

Nvidia, which first disclosed a small stake in Nebius early last year, said back in March that it would invest $2 billion in the company. At the time, Nvidia CEO Jensen Huang said the two companies were deepening their partnership “scaling the cloud to meet the surging global demand for intelligence.”

Last month, bullish analysts at Citi told clients they came away from Nebius’s “Inflection” event in San Francisco “more constructive on both the durability of pricing and strategic value of Nebius’s expanding software stack,” as AI adoption grows. The analysts have a “buy” rating and $287 target for the stock, a bit above the consensus compiled by Visible Alpha around $276.

With Tuesday’s gains, shares of Nebius are up about 160% this year so far and have quadrupled over the past 12 months.

This article has been updated since it was first published to reflect more recent prices.

• 3M shares surged after the company reported stronger-than-expected earnings and raised its profit outlook.
• The company posted $2.40 in adjusted earnings per share and $6.5 billion in sales, beating analysts’ estimates.
• The stock hit its highest level since February.

Shares of 3M (MMM) jumped Tuesday morning after the conglomerate reported better-than-expected results and raised its profit outlook.

Before the bell Tuesday, 3M posted second-quarter adjusted earnings of $2.40 per share on net sales that rose 2.4% year-over-year to $6.5 billion. Analysts surveyed by Visible Alpha had expected $2.25 per share and $6.31 billion, respectively.

The St. Paul, Minn.-based company lifted its full-year adjusted EPS projection to $8.80 to $8.95 from the prior range of $8.50 to $8.70.

3M shares were up 9% at $174 recently, trading at their highest levels since February. The stock was the top gainer in the Dow Jones Industrial Average on Tuesday.

“We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we’re making on our strategic priorities and building a higher-performing company,” 3M CEO William Brown said. “As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance and remain confident in our ability to create long-term value for shareholders.” 

Shares of the Scotch Tape and Post-it Notes maker entered the day down less than 1% since the start of the year.

Episode 304 of the Investopedia Express podcast with Caleb Silver (July 20, 2026)

Subscribe Now: Apple Podcasts / Spotify / PlayerFM

The summer winds have blown a bear market into semiconductor stocks as pricing has come under pressure. What do investors need to hear from chipmakers and AI superscalers this week to regain their confidence? The latest results of the Investopedia Sentiment Survey are in, and we are still trying to hang on to the bull.

Plus, our credit card rewards and loyalty points aren’t going as far as they used to. Peter Greenberg, the Travel Wizard, says, ‘Get used to it,’ and offers insider tips for the smart traveler.

Stock futures are rising after three straight days of declines for major indexes; chip stocks are leading the rebound as volatility in the AI trade persists; several big-name companies reported earnings this morning ahead of Big Tech results tomorrow; Nebius shares are surging on news Nvidia as increased its stake in the Dutch AI infrastructure company; and SpaceX shares are rising after closing lower for the seventh consecutive sessions. Here’s what you need to know today.

Stock futures are pointing to a higher open for major indexes as chip stocks rally and investors digest a slew of earnings reports. Futures tied to the tech-focused Nasdaq were up 1.3% recently, while futures linked to the Dow Jones Industrial and the S&P 500 added 0.2% and 0.4%, respectively. The major indexes have lost ground in each of the past three sessions. WTI crude oil futures were up 1.7% at $84.60 per barrel, trading near their highest levels in more than a month, as fighting between the U.S. and Iran continues. Gold futures rose 1% to $4,060 an ounce, while bitcoin was holding steady around $64,300. The yield on the 10-year Treasury note, which affects interest rates on all sorts of loans, was little changed at 4.60%, near a two-month high.

Shares of chipmakers and data storage companies are surging this morning amid ongoing volatility in the AI trade. The iShares Semiconductor ETF (SOXX) was up 4.5% as Advanced Micro Devices (AMD), Intel (INTC) and Marvell Technology (MRVL) each rose more than 4%, while Nvidia (NVDA) and Broadcom (AVGO) also gained ground. The Roundhill Memory ETF (DRAM) climbed nearly 7% as shares of Micron (MU), SK Hynix (SKHY), Sandisk (SNDK), Western Digital (WDC) and Seagate Technology (STX) jumped.

Shares of Nebius Group (NBIS) were sharply higher following a regulatory disclosure showing that Nvidia (NVDA) has built a 9.3% stake in the Amsterdam-based AI infrastructure company. Nvidia, which first disclosed a small stake in Nebius early last year, announced in March this year that it would invest $2 billion in the company to expand its partnership. At the time, Nvidia CEO Jensen Huang said that the two companies were “scaling the cloud to meet the surging global demand for intelligence.” U.S.-traded shares of Nebius, which have gained roughly 250% over the past year, were up 7% in recent premarket trading.

Several major companies reported earnings this morning as investors prepare for even bigger names to release results in the coming days. Among the stocks on the move, Dow component 3M (MMM) rose 6% after the conglomerate reported better-than-expected results and raised its outlook, while shares of pharmaceutical company Novartis (NVS) added 3% after a strong report. Shares of defense contractor Northrop Grumman (NOC), oilfield services company Halliburton (HAL), healthcare technology company Danaher (DHR) and General Motors (GM) fell. The earnings calendar is heavier in the coming days, and investors will be paying particularly close attention to results coming late Wednesday from Alphabet (GOOGL), Tesla (TSLA), International Business Machines (IBM) and Texas Instruments (TXN).

SpaceX (SPCX) shares are slightly higher this morning after closing lower for the seventh consecutive session on Monday. The stock has lost about one-fifth of its value over that stretch and is down nearly 50% from the record high above $225 set on July 16, just a few days after the company’s historic IPO. SpaceX is expected to release its first earnings report as a public company next month. Shortly after that, certain lock-ups that prohibit early investors and employees from selling the stock will expire, which could produce more volatility. SpaceX stock was up 1.5% in recent premarket trading.

• A proposal to cap Social Security benefits at $100,000 annually for couples could save the program billions of dollars.
• There are varying cap options that offer different levels of savings and benefit impacts, like indexing the cap to inflation or maintaining the $100,000 cap for 30 years.

• These proposed caps would primarily impact the top 20% to 30% of earners, who typically have significant assets beyond Social Security.

Some retired couples receive more than $100,000 in Social Security benefits each year. One recent proposal suggests capping these benefits to help extend the program.

More than 1.25 million retirees, or about 2% of all Social Security beneficiaries, receive $50,000 or more in benefits each year. That means some couples receive combined benefits of $100,000 or more a year. This generally occurs when both parties consistently earned more than the Social Security taxable maximum for 35 years and retired at their full retirement age. And the benefit amounts for couples with six-figure benefits will continue to rise through the annual cost-of-living adjustment.

However, the Committee for a Responsible Federal Budget (CRFB), a nonpartisan, nonprofit organization that conducts fiscal policy analysis, proposes capping a couple’s annual benefits at $100,000. Initially, this proposal would save the program $100 billion to $190 billion over 10 years.

“Social Security is less than seven years from insolvency, and under the law, when it becomes insolvent, everybody’s benefits get cut 24%...which for a typical couple retiring in 2033 is like $18,000,” said Marc Goldwein, senior vice president and senior policy director at the CRFB. “So the question is, what are we going to do to avoid that?”

Most policy analysts say either tax rates need to increase or benefits need to be reduced, Goldwein said. While the “Six-Figure Limit” alone is not enough to delay Social Security’s insolvency cliff, combined with other solutions, it would help extend Social Security’s lifespan.

The main trust fund for the Social Security program is set to run out of money by 2032. After that point, the law dictates that all benefits will be reduced, which most beneficiaries say they would not financially survive.

This proposal would still reward beneficiaries with higher benefits who wait to claim benefits until after their full retirement age. Beyond that, there are three ways this proposal could be implemented:

• An inflation-indexed cap: The first option would cap benefits for couples who retire at their full retirement age to $100,000 in benefits during 2026. From there, the cap would grow with inflation rates.
• 20-year fixed cap: This option would keep a $100,000 cap for 20 years, then boost benefits annually based on the average wage increase for workers. For example, the average wage increase in 2024 was 4.84%, according to the Social Security Administration.
• 30-year fixed cap: The 30-year cap would work similarly to the 20-year cap, but it would restrict benefits to a maximum of $100,000 until 2056.

These solutions would generally only lower the benefits of the top 20% to 30% of earners, the CRFB said.

“If you’re getting $100,000, as a couple, in benefits, you probably have tens of millions of dollars in assets, and your Social Security benefit is not very important to you,” Goldwein said. “Over time, as this phases in, it’s going to affect more people further down the income ladder, but every version that we model [is always] incredibly progressive.”

The 30-year fixed cap proposal provides the greatest savings, reducing the Social Security budget shortfall over 75 years by 55%, according to CRFB estimates.

“This approach may prove effective in generating upfront savings and ‘buying time’ for other solvency-enhancing policies to phase in,” authors of the CRFB report said.