Markets Pause Before Holiday; M&A and AI Headlines Dominate

US Markets

Stocks closed lower Wednesday as a chip-stock rebound ran out of steam. The S&P 500 and Nasdaq both finished in the red. Markets now head into the July 4th holiday with a cautious mood.

META grabbed headlines after its CTO addressed an internal row over mouse tracking software. He confirmed any restart would be opt-in. Short interest in Meta remains thin at just 1.4% of free float. Options traders lean bullish.

BX posted its best month since launch. The Blackstone Anthropic bet paid off handsomely. AI-linked names continue to drive alternative asset returns.

NEXA confirmed that Votorantim and Boliden are in live talks. The deal would transfer Votorantim's stake in the zinc miner to the Swedish group. Cost to borrow on Nexa spiked to 22% APR — a sign traders are actively positioning around the outcome.

Short sellers remain firmly committed to HTZ. Utilization hit 97.7% — near its 52-week peak. Borrow availability has collapsed to effectively zero. With 48.4% of the free float short, squeeze risk is building fast.

Insider activity was heavy this week. Applied Materials (AMAT) saw six insiders file combined sales of over $113M. Silver Lake also disclosed sales of DELL shares worth over $874M across five filings.

Europe

The Bank of England said it will push ahead with plans to limit hedge fund leverage in the gilt market. The move aims to reduce systemic risk but has drawn criticism for potentially raising borrowing costs.

Franco-German defence group KNDS postponed its IPO after investors pushed back on a €12 billion-plus valuation. The company said it will wait for better market conditions.

Hedge funds Millennium and Point72 posted double-digit first-half returns, rebounding strongly following the Iran conflict shock.

Week Ahead

PEP reports Q2 results on Wednesday July 8. Investors will watch for consumer demand signals and pricing power. LEVI also reports Wednesday. Earnings season builds gradually after the holiday break.