US semiconductor equipment sector rallies sharply pre-market, KLAC rises 5.41%

Tom Lee, chairman of BitMine—the largest Ethereum treasury—told CNBC in an interview that he expects U.S. stocks will perform stronger in July, citing more reasonable market valuations and investor sentiment that has not turned overly bullish. July will kick off the second-quarter earnings season, with first-quarter corporate earnings coming in notably better than expected. The current market price-to-earnings (P/E) ratio is roughly 1.1 percentage points lower than it was in January. Lee forecasts second-quarter earnings will again exceed estimates, pushing valuations down further and creating room for P/E expansion, leading him to conclude July will be a month of stronger stock performance. On whether the S&P 500 can hit 8,000 points this year, Lee said the target is achievable. He noted 8,000 points roughly corresponds to $400 in 2026 earnings per share (EPS) and a ~20x P/E ratio, but added he views current EPS estimates as too low, with the P/E multiple potentially reaching 22x or higher—implying upside could even hit 8,400 to 8,800 points by year-end. That said, Lee also warned the market could see a correction "that feels like a bear market" between August and October, not July. Many fund managers have underperformed benchmarks this year; only 23% have beaten the Nasdaq Growth Index, the lowest level in nearly five years, so July may bring significant dip-buying demand. Lee added the February-April pullback, though just ~7%, already felt like a bear market, while later this year, factors like the Fed’s new policy framework and SpaceX’s gradual stock unlocks could test the market.

According to BIT (bit.com) market data, US chip stocks rallied across the board. AMD rose 8.13%, Broadcom (AVGO) gained 5.48%, Arm (ARM) advanced 5.39%, Qualcomm (QCOM) climbed 5.15%, TSMC (TSM) increased 4.81%, Intel (INTC) rose 3.79%, and Marvell Technology (MRVL) gained 3.70%. Optical communication-related stocks led the gains: Credo (CRDO) jumped 11.14%, Astera Labs (ALAB) rose 10.08%, Ciena (CIEN) advanced 4.57%, Coherent (COHR) climbed 4.53%, Applied Optoelectronics (AAOI) gained 4.19%, and Corning (GLW) rose 3.90%. The storage sector also posted gains, with Western Digital (WDC) up 9.11%, Seagate Technology (STX) gaining 5.90%, SanDisk (SNDK) rising 2.41%, and Micron Technology (MU) advancing 1.72%.

According to Bit.com's market data, the Nasdaq's gain has widened to 1%, after Trump posted that the market would surge sharply.

According to market sources, Microsoft (MSFT.O) will lay off 6,400 employees, with half of the cuts coming from a restructuring of its Xbox gaming division. The layoffs represent roughly 2.8% of the company’s total workforce. Microsoft will sell five studios, including Compulsion and DoubleFine.

US President Donald Trump publicly urged people to "buy a Dell computer", once again endorsing Dell. When asked about Dell’s prior donation to the "Trump Account", Trump said, "We will find a way to get that money back." Separately, Trump specifically mentioned Micron Technology, saying "Thank you Micron". Earlier, Micron had invested $250 million in the Trump Account.

SpaceX President Gwynne Shotwell announced Monday that she and her husband will donate 2 million SpaceX shares to the "Trump Account" program, with one share each going to more than 2 million U.S. children. At the current share price of roughly $160, the total value of the donation is approximately $320 million. The announcement comes just days after Trump publicly predicted SpaceX would participate in the initiative. Shotwell noted the donation targets children aged 11 to 17 in lower-income areas, with a focus on recipients near her home in central Texas. Earlier, Michael Dell and his wife pledged a $6.25 billion donation, Micron Technology committed $250 million, and firms including BlackRock, Intel and JPMorgan Chase said they will match donations at a $1,000 per-person standard. Trump told CNBC in a prior interview that he expected Elon Musk would also donate SpaceX shares, stating "I think he will do that," though Musk has not publicly responded to date. Trump also added that his relationship with Musk remains strong, describing their past disagreements as "a little friction."