The US markets delivered a mixed performance on July 2, with major indices diverging amid shifting sector dynamics and notable developments from tech giants. While the Dow Jones Industrial Average posted gains, the Nasdaq and S&P 500 edged lower, reflecting ongoing investor caution in the technology sector. Meanwhile, Apple stood out as a rare winner among big tech stocks, rising over 1.29% on news that it may integrate third-party artificial intelligence models into its Siri assistant—a move signaling a strategic pivot in its AI ambitions.
Market Overview: Mixed Signals Across Indices
The overnight trading session revealed a split market sentiment:
- Dow Jones rose 0.91%, driven by gains in industrial and materials sectors.
- Nasdaq Composite declined 0.82%, pressured by sell-offs in major tech names.
- S&P 500 dipped slightly by 0.11%, with most sectors posting gains except tech and communications.
Market volatility remained moderate, as reflected by the VIX index, which edged up 0.6% to 16.83. The US dollar index slipped 0.13% to 96.65, while the 10-year Treasury yield climbed to 4.245%, widening the spread with the 2-year yield to 47 basis points.
Commodities showed strength:
- Gold advanced 1.09% to $3,338.77/oz
- Brent crude oil gained 0.95% to $67.22/barrel
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Sector & Stock Performance: Tech Struggles, But Not All Hope Is Lost
Sector Rotation Favors Non-Tech Areas
Seven of the eleven S&P 500 sectors ended in positive territory, led by strong performances in:
- Materials (+2.59%)
- Healthcare (+1.42%)
- Consumer Staples (+1.25%)
- Energy (+0.77%)
Meanwhile, headwinds persisted in:
- Technology (-0.89%)
- Communication Services (-0.71%)
- Semiconductors (-0.45%)
This rotation suggests investors are reallocating toward defensive and value-oriented plays amid concerns over stretched valuations in growth stocks.
Chinese ADRs: Divergent Paths Amid EV Deliveries News
Chinese equities traded in the US showed mixed results:
- TSMC fell 0.8%
- Alibaba (BABA) rose 0.49%
- PDD Holdings (Pinduoduo) gained 0.79%
- JD.com edged up 0.18%
EV makers reported contrasting June delivery figures:
- Xiaomi Auto (XPEV) delivered 34,611 vehicles, up 224% YoY — marking eight consecutive months above 30,000 units.
- NIO reported 24,925 deliveries, a 17.5% YoY increase, with Q2 total at 72,056 units (+25.6%).
- Li Auto (LI) delivered 36,279 units, down 24% YoY, highlighting competitive pressures.
Notably, Temu resumed digital ad campaigns on Meta and Google platforms, signaling renewed marketing momentum.
Key Market Developments: AI Takes Center Stage
Apple May Partner with OpenAI or Anthropic to Supercharge Siri
In a pivotal shift, Apple is reportedly exploring external AI partnerships to enhance its voice assistant, Siri. According to Bloomberg:
- Apple is in talks with OpenAI (ChatGPT) and Anthropic (Claude) to integrate their large language models (LLMs) into future iOS versions.
- The company has already commissioned both firms to train models compatible with Apple’s cloud infrastructure.
- This marks a potential departure from reliance on internal AI development, acknowledging challenges in keeping pace with generative AI advancements.
👉 See how AI integration could reshape consumer technology and investment opportunities.
Strategic Implications
If finalized, this collaboration could:
- Accelerate Siri’s functionality to match or exceed Android counterparts.
- Signal Apple’s willingness to prioritize user experience over full-stack control.
- Pave the way for broader AI features in iPhone 16 and beyond, possibly launching in 2026.
Additionally:
- Analyst Ming-Chi Kuo forecasts a budget MacBook powered by the A18 Pro chip (from iPhone 16 Pro), expected in 2026 with sales between 5–7 million units.
- Regulatory hurdles under the EU’s Digital Markets Act (DMA) have delayed certain iOS 18 features in Europe, including location-tracking services, citing privacy risks.
OpenAI Clarifies TPU Usage: No Large-Scale Shift from Nvidia
Despite rumors of a major hardware shift, OpenAI clarified that while it is testing Google’s Tensor Processing Units (TPUs), there are currently no plans for large-scale deployment.
Key takeaways:
- Core operations remain reliant on Nvidia GPUs and AMD AI chips.
- OpenAI is developing its own custom AI silicon, expected to finalize design this year.
This cautious approach underscores the complexity of migrating large-scale AI infrastructure — even for leaders in the field.
Meta Builds "Superintelligence Lab" to Accelerate AGI Development
Meta has officially formed its Superintelligence Lab, led by:
- Alexandr Wang, founder of Scale AI
- Nat Friedman, former GitHub CEO
- Supported by AI luminaries including Ilya Sutskever (ex-OpenAI co-founder) and Daniel Gross
The lab aims to advance Meta’s Llama series of large language models and push toward Artificial General Intelligence (AGI). Despite Llama 4 trailing behind rivals like Google's Gemini and China’s DeepSeek, Meta remains committed to closing the gap.
However, analysts warn of high risk — similar to its Reality Labs venture, which has consumed over $60 billion since 2020 with limited returns.
Tesla Faces Sales Slump in Europe Amid Political Scrutiny
Tesla’s European momentum stalled in June:
- Denmark: -61.57% YoY new registrations
- Sweden: -64.4% YoY
- Italy: -66.01% YoY
- Though some markets like Norway (+53.8%) and Spain (+60.7%) showed resilience
Adding political pressure:
- Former President Donald Trump criticized Elon Musk’s government subsidies, suggesting a potential review by a proposed Department of Government Efficiency (DOGE).
- He claimed Musk “got more subsidies than anyone in history,” questioning sustainability without public support.
Crypto Spotlight: Whale Activity Surges
Coinbase reported a significant rise in high-value Bitcoin wallets:
- The number of BTC addresses holding over $1 million worth of bitcoin surged from early 2024 through May 2025.
Three key drivers behind renewed optimism:
- Improved US macroeconomic outlook reducing recession fears
- Growing corporate treasury adoption of crypto assets
- Evolving US regulatory clarity around stablecoins and market structure
This trend reflects increasing institutional confidence and long-term bullish sentiment.
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Today’s Economic Calendar: Focus on ADP Employment Data
Investors should watch:
- 20:15 ET – US June ADP Nonfarm Employment Change
This data will offer insights into labor market strength ahead of Friday’s official jobs report — a critical input for Fed rate decision expectations.
Frequently Asked Questions (FAQ)
Q: Why did Apple stock rise while other tech stocks fell?
A: Apple gained due to speculation it will use advanced third-party AI models (like ChatGPT or Claude) to improve Siri, addressing long-standing user complaints about its assistant’s limitations.
Q: Is Apple abandoning its own AI development?
A: Not entirely — but it’s open to hybrid solutions. Leveraging external models doesn’t rule out continued internal R&D; it reflects pragmatism in accelerating time-to-market.
Q: What does Meta’s Superintelligence Lab mean for investors?
A: It signals deep commitment to AGI, but carries high financial risk. Returns may take years, similar to past moonshot projects like the metaverse.
Q: Are falling Tesla sales in Europe a red flag?
A: Partially — regional demand fluctuations occur, but sustained declines could impact full-year guidance and margin targets, especially if not offset by US or Asian growth.
Q: What drives the increase in million-dollar Bitcoin wallets?
A: Institutional accumulation, corporate balance sheet adoption, and growing belief in BTC as a long-term store of value amid macro uncertainty.
Q: How might US interest rate expectations affect tech stocks?
A: Higher-for-longer rates typically pressure high-growth tech valuations. However, strong earnings or AI breakthroughs can offset these headwinds.
Core Keywords:
Apple AI, Siri upgrade, Meta Superintelligence Lab, Tesla Europe sales, Bitcoin whale wallets, OpenAI TPU usage, US ADP data, Nasdaq performance
This comprehensive recap highlights how technological transformation, regulatory forces, and macroeconomic indicators are converging to shape market direction — offering both risks and opportunities for forward-looking investors.