Good morning investors! The stock market is doing well as investors appear to gain faith again.
Today we cover:
Small-cap stocks win
Nike reports
Are you spending too much time managing finances?
📊 Economy and News
Small-Cap Stocks Post Best First Half in 35 Years, Powered by AI Boom
Small-cap stocks are delivering their strongest first-half performance in 35 years. The Russell 2000 Index has surged more than 21% in 2026, its best start since 1991.
Unlike past small-cap rallies tied to traditional economic cycles, this surge is largely driven by the rapid build-out of artificial intelligence infrastructure. Semiconductor and semiconductor equipment companies have led the charge, with many smaller AI supply chain players seeing explosive gains as spending flows beyond Big Tech.
“It’s both a valuation catch-up story and a fundamental story,” said Amy Zhang, portfolio manager at Alger. Earnings growth forecasts for Russell 2000 companies have jumped sharply, reflecting broadening profit momentum.
While AI remains the dominant catalyst, additional tailwinds include potential M&A activity, tax incentives for capital investment, and greater U.S. economic exposure.
The main risk is interest rates. Higher borrowing costs hit smaller companies harder, but many investors believe the worst of the tightening cycle is behind us.
Global hits:
Saudi Arabia’s PIF reports net profit more than doubles in 2025.
India’s April-May fiscal deficit at 9.6% of full-year target.
Germany demands $450 billion cut to ’unaffordable’ EU budget, document shows.
The war and oil: Oil prices posted their biggest monthly decline since March 2020 in June, with Brent crude falling roughly 21% to around $72.92 per barrel, as traders monitored fragile U.S.-Iran peace talks in Doha.
The sell-off reflects optimism around a temporary ceasefire reached earlier this month that paused fighting and restored some oil flows through the Strait of Hormuz. However, mixed signals — with Trump announcing talks while Iran denied them — highlight the deal’s fragility and the risk of renewed disruptions.
Analysts warn the market may be pricing in a more permanent resolution than currently exists, noting that the situation in the region can shift rapidly.
Reminder: Supreme Court upholds birthright citizenship, blocks Trump order.
👨 Sponsored by Mode Mobile
Google paid Apple $20B to be the default search engine on iPhones — and both companies hoped to shield it from the public.
The deal continues to fuel Google’s ad revenue engine, which made an eye-popping +$260B in 2025.
Mode Mobile wants smartphone users to get their piece of that money.
They’re flipping the data industry on its head, splitting the profits with their users by turning smartphones into an income-generating asset. Here’s what that looks like:
Paid out +$1B in an ecosystem of +490M users.
Generated 32,481% 3-year revenue growth.
Ranked #1 fastest-growing software company by Deloitte in 2023.
📲Their EarnPhone could be considered the Uber of smartphones, and they’re gearing up for a potential IPO on the Nasdaq (ticker: $MODE).
And as companies desperately seek to extract more data, you can invest in Mode’s pre-IPO offering at just $0.52/share.
Disclosures
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.
📈 Stocks
S&P 500 7,499.36 (+0.79%)
DJIA 52,319.20 (+0.26%)
NASDAQ 26,213.72 (+1.52%)
BRENT CRUDE 73.21 (-0.37%)
* Prices as of Jul 1st, 12:20 AM UTC
Nike and AeroVironment Report
Some major names announced earnings yesterday:
Nike reported earnings and revenue that beat Wall Street expectations, yet shares fell -7%. Nike’s revenue in North America, its largest market, climbed 3% to $4.83 billion. It fell short of analysts’ expectations of $4.88 billion. Also, the company reported a 12% drop in sales in its Greater China market. Nike also said its gross margin increased 8.9% during the quarter, largely due to an expected tariff refund of nearly $986 million.
AeroVironment shares skyrocketed nearly 19% after the dronemaker easily blew past Wall Street’s fiscal fourth-quarter estimates, benefiting from U.S. plans to modernize the military and secure space. AeroVironment is positioning itself for a windfall from the step-up in government funding. The Department of Defense budget is requesting a record $75 billion for drones in 2027 as the Trump administration seeks a historic $1.5 trillion defense budget.
Interesting: AWS puts $1 billion into new AI unit to embed engineers with customers, joining growing wave.
FDA lets Philip Morris market Zyn nicotine pouches as less harmful than cigarettes.
CrowdStrike and Palo Alto rallied 95% and 113%, respectively, between April and June for their best quarter on record.
Surprising: Trump’s annual financial disclosure shows more than $580M in crypto-related income. In other news, Michael Burry says he’s shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026.
💵 Personal Finance
Americans Waste 13 Hours a Week on Finances — How to Reclaim Your Time
Many Americans, especially those with lower financial literacy, are losing significant time each week stressing about money.
U.S. adults with the lowest financial literacy scores spend an average of 13 hours per week dealing with personal finance issues. In contrast, those with the highest scores spend only about 4 hours weekly — a difference of nearly a full workday.
This time drain often stems from financial insecurity rather than just lack of knowledge. People in tighter situations frequently move money around, juggle bills, and handle creditors, creating a cycle of constant worry.
Here’s what you can do to reclaim your time:
1. Build a Financial Buffer
Financial experts recommend prioritizing an emergency fund covering 3–6 months of expenses. Even starting small can reduce anxiety. A solid cash cushion prevents minor setbacks—like a car repair or medical bill—from turning into crises that demand constant attention and juggling.
2. Automate Everything Possible
Automation is the quickest win. Set up auto-pay for bills, subscriptions, debt payments, and transfers to savings or retirement accounts. Once established, these systems run in the background with minimal oversight.
3. Simplify Your Financial Life
Reduce the number of accounts and credit cards you manage. Use a personal finance app that links all your accounts to provide one clear dashboard view of spending, saving, investing, and debt.
4. Leverage Education and Professional Help
Take advantage of free or low-cost resources through your employer, such as financial wellness programs, retirement matching, and educational tools. Focus on targeted learning relevant to your life stage — saving and investing basics for younger adults, or Social Security and retirement drawdown strategies for older ones.
When situations get complex, consider consulting a certified financial planner. Community pro bono events can sometimes provide access to professional advice at little or no cost.
Reclaiming those extra hours can lead to better peace of mind and free up time for what matters most.
💰 Be a Better Investor
“It’s not how much money you make, but how much money you keep, how hard it works for you, and to what generation you pass it on.”
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