IBM sent an urgent letter to shareholders eight days before its earnings release, acknowledging a quarterly performance shortfall driven by customers reallocating capital spending toward AI hardware such as servers, storage, and memory, while cybersecurity issues also distracted clients. The disclosure has reignited analyst concerns about a “SaaSpocalypse,” with enterprise software budgets facing broader pressure as AI investment rises. The note also flagged that Palantir and ServiceNow (ONUS) could face similar headwinds.

Bank of America raised its S&P 500 second-quarter earnings-per-share forecast to $85.50, up 28% year over year and 5% above the Wall Street consensus. It also lifted its full-year 2026 EPS estimate to $345 from $335, implying 26% annual growth. The bank said Energy and Tech are the main drivers, while early reporters have delivered an 83% EPS beat rate and a 72% revenue beat rate. Cooling inflation in the latest CPI reading was cited as an additional support for earnings resilience.

Samsung Electronics is set to report earnings before the Korean market opens on Tuesday, with the market expecting an 18-fold jump in operating profit and a 127% year-on-year rise in revenue. SK Hynix has begun marketing a $29 billion US listing, with trading expected to start on July 10. Both companies are key global suppliers of AI high-bandwidth memory, and the results and IPO are seen as near-term catalysts for South Korean semiconductor stocks.

Meta is planning to launch a cloud business that would sell excess AI computing capacity from its self-built data centers and offer access to its AI models, marking its first formal push into the public cloud market, according to Bloomberg. The move would pit the Facebook and Instagram parent against cloud heavyweights including Microsoft, Amazon and Alphabet. Meta shares rose as much as 10% in a single session on the report, though the plan remains at an early stage with no timeline, pricing or customer details disclosed. Even after the move, the stock is down 8% year to date as investors scrutinize the sustainability of Meta’s heavy AI capital spending.

Nvidia ranked first in data center Ethernet switch revenue for the first time in the first quarter of 2026, taking a 21.5% market share worth $2.1 billion, according to IDC. The market totaled $10 billion in the quarter, up 61% from a year earlier, the firm said. IDC attributed Nvidia’s gain to SpectrumX, a system tightly integrated with its AI chips that appeals to cloud providers seeking faster deployments. Nvidia has highlighted networking as a key growth driver, though IDC noted cloud giants’ push to diversify suppliers as a potential risk.

SpaceX shares were set to extend losses for a fourth straight session, down about 3% in premarket trading ahead of Tuesday’s open. The stock was poised to open at $150, more than 30% below the $225 intraday high hit last Tuesday, erasing around $400 billion from its closing market capitalization that day. The pullback comes as tech stocks weaken more broadly, with Nasdaq futures pointing to a drop of more than 2.5% at Tuesday’s open, dragging on other high-valuation names.

Société Générale warned that US household debt has climbed to a record $19.9 trillion while the personal savings rate fell to 2.6% in April, near a historic low. The bank said income growth has begun to slow, increasing the risk that consumer spending could weaken sharply. It also argued that debt is delivering less lift to GDP, with credit intensity dropping to its worst level in 70 years. The combination, it said, could create systemic pressure for a stock market heavily reliant on consumer demand, particularly indexes concentrated in high-valuation technology shares.

Apple CEO Tim Cook said iPhone prices will increase as the cost of memory and storage chips jumps. Microsoft Xbox chief Asha Sharma said storage components have risen to more than 5x what they cost two years earlier, and described a similar pattern for memory. Dell and Ford have also warned that AI-driven demand is tightening supplies of key components and lifting prices across electronics. The shift is pressuring margins in Apple’s and Microsoft’s hardware businesses, while leaving chipmakers and upstream materials outside the scope of these warnings.

Trader Ed Elson warned in a Substack post that SpaceX, Anthropic, OpenAI and Google plan to inject roughly $350 billion of new equity into markets, a sum he said exceeds total US venture-capital investment last year and combined IPO proceeds over the past seven years. He argued the added supply could force investors to sell existing high-valuation tech holdings to fund new purchases, creating direct pressure on incumbents such as Meta and Google. He also cited SpaceX shares falling 10% in a single day after the listing and said the company’s valuation is far above historical comparables.