US Market Outlook: Key Events for Nvidia, Qualcomm, Micron; Gold and Oil Prices Drop

Market Overview

On Wednesday morning, the Pakistani Foreign Ministry announced that technical negotiations between the US and Iran will resume on the 30th of this month. Following this news, all three major US stock index futures rose, with the Dow Jones futures up 0.15%, Nasdaq 100 futures up 0.66%, and S&P 500 futures up 0.36%.

Pre-Market Movements

Tech Stocks

Most major tech stocks saw gains in pre-market trading. Micron Technology surged over 5%, while Intel and AMD rose nearly 2%. Nvidia, Tesla, and Apple increased by nearly 1%, whereas Microsoft and SpaceX fell close to 1%.

Chinese Stocks

In contrast, many popular Chinese stocks declined in pre-market trading. NIO and Alibaba dropped nearly 2%, while XPeng, Baidu, and JD.com fell over 1%. However, UMC rose over 3%, and ASE Technology and Bilibili gained over 2%.

Semiconductor Sector

The semiconductor sector rebounded in pre-market trading, with Micron up over 4%, Arm nearly 4%, and Qualcomm and Intel close to 2%. However, AI chip manufacturer Cerebras fell over 11% after releasing its latest quarterly results.

Key Earnings Reports

Micron Technology is set to release its Q3 earnings report after the market closes on Wednesday. This report is crucial for assessing the demand for AI infrastructure, which could influence the stock's performance and the broader tech sector.

Notable Company News

SK Hynix IPO

SK Hynix has submitted an IPO application in the US, planning to list on NASDAQ under the symbol "SKHY" on July 10, aiming to raise approximately $29.4 billion.

Qualcomm Developments

Qualcomm announced it has reached an agreement to acquire Modular, enhancing its capabilities in generative AI and intelligent software for data centers. Additionally, Qualcomm is in talks with ByteDance to provide custom chip design services.

Federal Express Earnings

FedEx reported Q4 revenue of $25 billion, exceeding expectations, but its core operating margin fell from 8.4% to 7.7%. The company revised its fiscal year outlook, projecting lower earnings than analysts anticipated.

Economic Insights

Bank of America Semiconductor Forecast

Bank of America has significantly raised its forecast for the global semiconductor market, predicting it will grow from $787 billion in 2025 to $2.734 trillion by 2030, driven by AI demand and supply constraints.

SoftBank's AI Ambitions

SoftBank's CEO Masayoshi Son dismissed claims that AI is in a bubble, asserting that the potential of AI will soon be fully realized.

Conclusion

The market is closely watching upcoming earnings reports and geopolitical developments, particularly the resumption of US-Iran negotiations, which could impact investor sentiment and stock performance in the tech and semiconductor sectors.