US Stock Market Outlook: Fed Chair Nomination, Gold and Silver Stocks Drop, SanDisk Soars.

US Stock Futures Decline Ahead of Market Open

As of Friday morning, all three major US stock index futures are down. The Dow futures fell by 0.41%, Nasdaq futures dropped by 0.51%, and S&P 500 futures decreased by 0.39%.

Notable Movements in Tech Stocks

Most star tech stocks are experiencing declines in pre-market trading.

• Micron Technology (MU) rose over 4%.
• Tesla (TSLA) increased by more than 2%.
• NVIDIA (NVDA) fell over 1%.
• Apple (AAPL), Intel (INTC), Google-A (GOOGL), and ASML all dropped nearly 1%.

Popular Chinese stocks also saw declines:

• GDS Holdings (GDS) fell by 2%.
• Taiwan Semiconductor Manufacturing Company (TSM) dropped over 1%.
• Xpeng Motors (XPEV), JD.com (JD), and Baidu (BIDU) fell close to 1%.
• NIO (NIO), however, rose nearly 2%.

Gold and Silver Stocks Plummet

Gold and silver stocks are facing significant declines:

• Hycroft Mining (HYMC) dropped over 10%.
• Coeur Mining (CDE) fell over 8%.
• First Majestic Silver (AG) decreased by more than 7%.
• Barrick Gold (B) fell over 5%.

Storage Sector Divergence

The storage sector showed mixed results:

• SanDisk Corp (SNDK) surged over 23% after exceeding earnings expectations.
• Micron Technology (MU) rose over 4%.
• Seagate Technology (STX) increased by over 2%.
• Western Digital (WDC) fell over 2%.

SanDisk's impressive performance is attributed to AI-driven demand for storage, with Q4 revenue reaching $3.03 billion, significantly surpassing Wall Street expectations.

SoFi and KLA-Tencor Earnings

SoFi Technologies (SOFI) saw a pre-market increase of over 7%, reporting record revenue of $1 billion for Q4 2025.

Conversely, KLA Corporation (KLAC) dropped over 8% due to valuation concerns, despite reporting a 7.2% year-over-year revenue increase.

Apple Prioritizes High-End iPhones

Apple is reportedly prioritizing the production of high-end iPhone models for 2026 to address memory shortages, delaying the standard models.

Alibaba's New Strategy

Alibaba is focusing on a "Cloud + AI + Chip" strategy, with significant shipments of its PPU chips. The company aims to leverage AI as a core driver for growth in cloud computing.

ExxonMobil and Chevron Earnings

ExxonMobil (XOM) exceeded profit expectations in Q4, reporting adjusted earnings of $1.71 per share, while Chevron (CVX) reported adjusted earnings of $1.52 per share, both benefiting from improved oil production and refining margins.

Trump Nominates Kevin Warsh for Fed Chair

Former President Trump announced his nomination of Kevin Warsh for the Federal Reserve Chair position, although the nomination may face hurdles due to ongoing investigations.

Market Reaction to Fed Chair Nomination

The market is reacting to the potential nomination of Warsh, with expectations of interest rate cuts influencing commodity prices, leading to significant declines in gold and silver.

Economic Outlook

Reports suggest that the US population may see its first decline in 2026, driven by aging demographics and immigration policies.

Hong Kong Economic Growth

Hong Kong's GDP growth for 2025 is projected at 3.5%, surpassing expectations.

Regulatory Concerns in Hong Kong

The Hong Kong Securities and Futures Commission has paused the review process for 16 IPO applications due to concerns over compliance and documentation issues.