Markets Open Q3 With a Tech Bid and Short Squeeze Risks

US stocks just closed their best quarter in six years. July opens with fresh momentum across tech, AI, and insurance names.

US: AI, Semis, and Software Lead the Charge

Meta Platforms is building a cloud business to sell excess AI compute. That is a meaningful pivot. It puts Meta in direct competition with Amazon, Microsoft, and Google in the cloud market. Salesforce picked up a fresh Buy rating from Guggenheim today with a $228 target. Separately, B of A raised its target on Western Digital to $732, citing storage demand tied to AI infrastructure buildout. Semis and software are driving the Q3 open.

Short Squeeze Risk Builds

Wolfspeed carries 132% SI % FF with zero shares left to borrow. WaterBridge Infrastructure jumped 34 points in a week to 86.6% SI % FF. Hertz now sits at 62.6%. Any positive catalyst in these names could trigger violent short covering.

Europe: Insurance and Insider Confidence

The H&M founding family filed $110.8 million in purchases of H&M shares last week. That is a large, deliberate vote of confidence from Sweden's Persson family. Insurance stocks on both sides of the Atlantic continue to see analyst target upgrades — Chubb, Travelers, and Progressive all received upward revisions today.

Mexico Courts Global Capital

Bloomberg reports Mexico is approaching BlackRock and KKR to fund major infrastructure projects. This could unlock significant emerging market flows as Q3 begins.

Earnings Season Starts Now

General Mills and FactSet Research Systems kick off Q3 earnings today. Margins and demand signals will set the tone for the weeks ahead.