1. Meta's AI Cloud Pivot Rattles Semiconductor Stocks

On 1 July 2026, Meta Platforms reportedly confirmed plans to rent its AI infrastructure to other companies, with sources telling Bloomberg and CNBC that it will sell excess capacity not used by its internal workloads. The news sent Meta's shares 8.8% higher, while AI cloud provider CoreWeave closed 13.9% lower, and Nebius Group dropped 17%. The ripple effect was broad: the S&P 500 was flat and the Nasdaq 100 fell 0.8%, as chipmaker stocks fell for a second day as investors questioned whether AI optimism had pushed valuations beyond reasonable levels. Micron Technology sank 7%, Applied Materials slipped 7.4%, and Advanced Micro Devices dropped 4.3%, while SanDisk fell 14% and Marvell dropped 9.8%. The backdrop: Meta expects to spend up to $145 billion on capital expenses in its current fiscal year, on top of the $70 billion it invested in 2025.

Source: SiliconANGLE / Bloomberg / CNBC / Trading Economics, 1–2 July 2026

2. Fed Holds Rates, Signals "Higher-for-Longer" as Inflation Stays Elevated

The Fed kept the federal funds rate unchanged at 3.50%–3.75% for a fourth consecutive meeting in June 2026, in a session that was the first under new Fed Chair Kevin Warsh. New economic projections show that nine officials see at least one rate hike this year, with six anticipating at least two, while nine expected no move or a cut. The June Summary of Economic Projections revised inflation materially higher: PCE inflation was revised sharply to 3.6% from 2.7% for this year, and for 2027 it was also raised to 3.3% from 2.7%. As of 2 July, the effective federal funds rate stands at 3.63%, with futures markets pricing a path that rises to about 3.8% by October 2026 and approaches 4% around year-end. Contributing to policy complexity, the June payrolls report showed nonfarm employment rose by only 57,000, below expectations for a gain of more than 100,000, while the unemployment rate ticked down to 4.2%.

Source: Trading Economics / StreetStats / Edward Jones, 1–2 July 2026

3. South Korea Announces Record $880 Billion Semiconductor and AI Investment Plan

South Korean President Lee Jae-myung announced on 30 June 2026 a national investment plan totalling 1,350 trillion won ($880 billion) over ten years targeting semiconductors, AI infrastructure, and robotics, framing it as a matter of national survival. The plan's core is a new semiconductor manufacturing hub in South Korea's southwest, where Samsung Electronics and SK Hynix will invest a combined 800 trillion won ($518 billion) to build two new chip fabrication sites each in the Gwangju region, with an additional 81 trillion won earmarked for a chip packaging cluster near Seoul. The SK Group, GS Group, and Naver will back AI data centre construction in the region with 550 trillion won ($356 billion) in combined investment. The announcement coincides with broader industry momentum: the global semiconductor industry is expected to reach $975 billion in annual sales in 2026, a historic peak fuelled by an intensifying AI infrastructure boom, with growth projected to accelerate to 26% in 2026.

Source: Unrot.co / Deloitte Insights, 1 July 2026

4. APAC Capital Markets Confidence Reaches Post-Survey High

Confidence in Asia-Pacific capital markets has reached its highest point since the ASIFMA Asia-Pacific Capital Markets Survey was first published, with two-thirds of financial firms planning regional expansion over the next three years, according to the 2026 edition released on 30 June by ASIFMA in collaboration with KPMG. Singapore and Hong Kong ranked as the top two markets for ease of doing business, with equities, fixed income, FX, and asset management among the top product lines firms plan to expand. The optimism reflects broader structural dynamics: exemptions on key exports such as semiconductors, electronics, and pharmaceuticals reduced the effective tariff rate for the region, while the global AI buildout benefited exporters like Taiwan and data centre hubs like Malaysia and Singapore. However, markets in Asia were mostly lower overnight on 2 July, with Korea's KOSPI falling nearly 8% amid weakness in semiconductor shares.

Source: ASIFMA / KPMG / Caproasia / Edward Jones, 30 June – 2 July 2026

5. Private Credit Mid-Year: A Lender-Friendly Reset Takes Hold

At mid-year, the private credit market is exhibiting a notable shift in negotiating dynamics. The most important development is not simply that tailwinds remain in place — it is that the market has reset in a more lender-friendly direction. Spreads have widened by roughly 50 to 100 basis points since late 2025, and new loans are increasingly coming with better credit structures: less leverage, more covenants, fewer PIK requests, and tighter documentation, according to PitchBook data. Deal activity is also improving: US M&A/LBO deal volumes in Q1-2026 increased by more than 30% relative to the same period last year, though transaction count declined over the same period, reflecting fewer but larger transactions. On credit quality, KBRA projects the annualised default rate to rise modestly from 1.5% in 2025 to 2.0% by year-end, with credit risk remaining largely idiosyncratic. Pockets of pressure are concentrated in select sectors such as consumer, certain vintage years (notably 2021), and business models more exposed to AI-related disruption. The lender-friendlier terms described above are a reported market-wide trend, not a guarantee: wider spreads and tighter structures can also signal that lenders are pricing in greater borrower stress, and the projected rise in default rates means credit risk is increasing, not disappearing.

Past and projected credit-market conditions cited above are third-party data (PitchBook, KBRA, Lord Abbett, Northleaf) and are not indicative of future results. This commentary is not investment advice and does not constitute an offer or solicitation. Capital invested in private credit is at risk, including possible total loss of principal.

Source: Lord Abbett Mid-Year Outlook / Northleaf Capital Q1-2026 Market Update, June–July 2026

This news roundup is produced by 1Oak Research for general informational and educational purposes only. Nothing in it constitutes investment advice, a solicitation, or a recommendation to buy, sell, or hold any security or financial instrument. All investments carry risk, including the possible total loss of capital. 1Oak Research is not a licensed or regulated financial entity.