OpenAI has unveiled Presence, an enterprise-focused product designed to give AI agents data-governance and access-control features for use with company information. The release targets automation in customer support, sales, and internal workflows, and has intensified investor concerns about “AI eating software,” helping push the IGV software index down 3% in a single session. The selloff also hit SaaS names including Workday, Atlassian, and HubSpot. The move reflects AI providers expanding into traditional SaaS markets, without any new regulatory, macroeconomic, or geopolitical catalyst.

South Korean regulators said they will tighten trading rules for single-stock leveraged ETFs to curb excessive speculation in AI-related shares. The move helped spark a broad selloff in Asian chip stocks: Japan’s Kioxia fell 16% in a day and has halved since its June peak, erasing about 30 trillion yen, or roughly $185 billion, in market value. Taiwan Semiconductor Manufacturing Co. dropped over 5% even after reporting a 77% year-on-year profit surge, while Samsung Electronics and SK Hynix are down roughly one-third from their peaks this year; SK Hynix’s Nasdaq-listed ADR (ONUS) fell 14% on Thursday.

Major AI hardware names such as TSMC and Samsung posted earnings that topped expectations, yet their shares fell broadly, underscoring investor doubts about the durability of AI hardware profits. SK Hynix, Samsung, Micron and Marvell ADRs dropped 5%-8% in a single session, helping push the KOSPI down more than 6%. The Nasdaq 100 fell 1.32%, lagging the Dow. At the same time, the U.S.-Iran conflict intensified and risks around shipping through the Strait of Hormuz rose, but commodities did not see a sharp price reaction.

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.