Finance

The S&P 500 recently reached record levels, but analysts are divided on the outlook for the second half of 2026. While some forecasts target significant gains up to 8,250, others warn that extreme speculation and declining free cash flow among AI-focused 'hyperscalers' could lead to a valuation snapback later this year.

Global oil prices have eased, with Brent crude hitting four-month lows following the reopening of the Strait of Hormuz and a projected increase in OPEC+ production targets. Simultaneously, domestic natural gas futures faced downward pressure after weekly storage injections exceeded market expectations, shifting the focus from scarcity to a potential oversupply.

Meta Platforms has introduced a new cloud business to rent out its excess AI computing capacity, a move that significantly impacted major chipmakers like Micron and Sandisk. This shift reflects a broader rotation within the sector, where investors are increasingly evaluating the sustainability of high valuations against the rising infrastructure costs of the AI boom.