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AI‑focused stocks surge 20%‑25% while Intel and FedEx Freight tumble 12%‑15% since July meeting; see which winners and losers reshaped the portfolio.
The Dow jumped 2.3% from June 17 to July 10, lifting the portfolio’s top AI‑linked names — Palo Alto Networks (+25.5%), CrowdStrike (+21.7%) and Meta (+20%) — while Intel fell 15% and FedEx Freight slipped 12.4% over the same span [1].
| At a glance | |
|---|---|
| Dow gain | +2.3% since June 17 |
| Top AI stocks | Palo Alto +25.5%, CrowdStrike +21.7%, Meta +20% |
| Bottom performers | Intel –15%, FedEx Freight –12.4% |
| Nasdaq change | +1% since June meeting |
Cybersecurity leaders Palo Alto Networks and CrowdStrike each hit record highs, driven by a narrative that AI will boost demand for security tools after a Wall Street Journal report flagged Chinese AI models’ ability to spot software flaws. IBM CEO Arvind Krishna’s comments that cybersecurity is a top IT‑spending priority added further optimism, prompting the fund to trim positions after locking in 150% and 105% gains respectively [1]. Meta’s 20% rise stemmed from its announced AI‑cloud service and plans to manufacture a custom AI chip, which analysts say could halve its projected $45 billion per gigawatt cost to about $22 billion, sending the stock up 15% in the prior week [1].
Intel’s 15% drop came as investors rotated out of semiconductor names after a strong sector run, though the stock remains up over 170% year‑to‑date. The fund added to its Intel position, viewing the dip as a buying opportunity rather than a signal that AI demand is waning [1]. FedEx Freight, newly independent since early June, slipped 12.4% amid a typical post‑spinoff sell‑off, despite earnings that beat expectations; the weakness is seen as a short‑term reaction rather than a fundamental shift [1].
A weaker‑than‑expected U.S. CPI report (annual 3.5% vs. 3.8% forecast; monthly –0.4%, the biggest decline in six years) briefly pushed the dollar lower, lifting EUR/USD, but rising oil prices around $87 a barrel keep the dollar supported in the longer run [2]. The mixed macro picture adds uncertainty to AI‑related valuations, as higher energy costs could revive inflation concerns and influence Fed rate expectations.
The split performance underscores that investors are rewarding AI‑linked firms with clear monetisation paths while remaining cautious on broader semiconductor exposure, leaving the next macro data releases pivotal for the sector’s trajectory.
Coverage is mostly measured — 116 of 138 reports stay neutral.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 17, 2026 · How we report
FactSet data shows that 87% of the roughly 40 S&P 500 companies that have reported so far have exceeded analyst expectations.
Alphabet, Tesla, and Intel are among the headline names slated to release earnings in the upcoming week.
S&P 500 futures rose after June consumer price data showed the biggest decline in over six years, indicating a temporary relief from persistent inflation.
Analysts have upgraded Deckers Outdoors to buy, raised Intel’s price target to $155, and increased UnitedHealth’s target to $475, reflecting confidence in their earnings prospects.
Morgan Stanley suggests a diversified income model that includes international assets, master limited partnerships, REITs, commodities, and a focus on quality dividend earners, AI beneficiaries, and fiscal policy winners.