US Stock Market Outlook: Core PCE Rises, Major Indices Up, Micron and Qualcomm Surge

Market Overview

On Wednesday morning, U.S. Secretary of State Rubio announced that Israel and Lebanon are close to reaching a "preliminary commitment," stating that establishing a toll system in the Strait of Hormuz is unfeasible. The U.S. core PCE annual rate slightly increased, aligning with expectations, leading to gains in all three major U.S. stock index futures. As of now, Dow futures are up 0.22%, Nasdaq 100 futures are up 2.27%, and S&P 500 futures are up 0.77%.

Pre-Market Stock Movements

• Star Tech Stocks: Mixed performance with Micron Technology up nearly 17%, Qualcomm up nearly 11%, Intel up over 6%, AMD up nearly 4%, SpaceX up over 2%, and Nvidia up nearly 1%.

• Popular Chinese Stocks: Most are down, with Ctrip down over 11%, Alibaba down nearly 3%, Baidu down nearly 1%, TSMC up nearly 3%, and UMC up over 1%.

• Storage Sector: All stocks in this sector are up, with Micron up over 17%, SanDisk up over 15%, Western Digital up nearly 13%, Seagate up over 11%, and SMI up over 9%.

• Semiconductor Stocks: Broad gains with Marvell Technology up over 4%, Qualcomm up over 9%, Intel up over 6%, Cerebras up over 3%, and Texas Instruments up nearly 3%.

• Optical Communication Stocks: All stocks in this sector are up, with Corning up over 6%, AXT Inc up over 5%, Credo Technology up over 4%, and others up over 3%.

Notable Company Updates

Nvidia's Power Rack Development

Nvidia is actively developing its own 800V HVDC Power Rack solution, expected to be ready by Q3 2026, targeting Vera Rubin customers. The adoption of this technology is anticipated to grow significantly by 2027.

Qualcomm's AI Data Center Expansion

Qualcomm announced its Dragonfly product family aimed at the AI data center market during its 2026 Investor Day. The company expects data center revenue to exceed $15 billion by FY2029, significantly increasing its non-mobile business revenue guidance.

TSMC and Advanced Manufacturing

Bank of America has raised valuation expectations for TSMC and other leaders in the supply chain, emphasizing the importance of advanced processes and packaging in the semiconductor industry.

IBM's Chip Technology Breakthrough

IBM has launched the world's first sub-1nm chip technology, enhancing performance by up to 50% and improving energy efficiency by 70% compared to its 2nm chips.

SK Hynix's Nasdaq Listing

SK Hynix plans to issue American Depositary Receipts (ADRs) on Nasdaq, aiming to raise nearly $30 billion, which could significantly expand its global investor base.

Micron's Strong Earnings Report

Micron reported a record gross margin of 84.9% for Q3, with revenue reaching $41.46 billion. Following the earnings announcement, major firms raised Micron's target price significantly.

Blackberry's Revenue Growth

Blackberry reported a 26% increase in Q1 revenue and raised its full-year outlook, projecting adjusted earnings per share between $0.16 and $0.20.

Amazon's Investment in India

Amazon announced an additional $13 billion investment in India by 2030 to support AI and cloud infrastructure, bringing its total investment to $48 billion.

Nokia's Semiconductor Expansion

Nokia received support from former President Trump for its $30 million semiconductor investment plan, which is part of a broader $4 billion strategy in the U.S.

International Relations and Trade Updates

U.S.-Iran Relations

Secretary Rubio stated that the U.S. is closely monitoring the Israel-Lebanon situation and emphasized that establishing a toll system in the Strait of Hormuz is not feasible.

Iraq's OPEC Position

The Iraqi Oil Ministry denied reports of considering exiting OPEC, clarifying that such discussions do not represent the government's official stance.

U.S.-China Trade Talks

The Chinese Ministry of Commerce announced that both sides agreed to establish a trade council to discuss tariff reductions and enhance cooperation in various sectors.

EU-U.S. Trade Agreement

The EU has approved a trade agreement with the U.S., aiming to stabilize economic relations amid ongoing tensions, with tariff reductions on industrial goods and some agricultural products.