US Stock Market Outlook: Fed Minutes Ahead, Tech Stocks Decline, Poor Performers Plummet.

U.S. Pre-Market Update: Major Indices and Stocks

On Wednesday, U.S. stock futures fell across the board, with the Nasdaq futures down 0.34%.

Major Tech Stocks Decline

Star tech stocks experienced a broad decline in pre-market trading:

• Micron fell over 5%
• Palantir dropped nearly 3%
• AMD and TSMC were down over 1%
• Nvidia, Tesla, and Apple also followed suit.

Chinese Stocks Show Mixed Performance

Most Chinese stocks rose in pre-market trading:

• Huazhu increased over 4%
• GDS Holdings gained nearly 4%
• JD.com, Alibaba, and Pinduoduo saw slight increases.

Target's Significant Drop

Target's stock plummeted in pre-market trading, dropping about 11% to $93.78 after maintaining its fiscal year outlook.

• Q2 net sales were $25.21 billion, above the estimated $24.93 billion.
• Gross margin for Q2 was 29%.
• Adjusted EPS was $2.05, slightly above the forecast of $2.01.

Target expects a low single-digit decline in sales for the fiscal year, estimating a 1.71% drop.

Lowe's Upgrades Forecast

Lowe's stock rose over 2% after raising its annual performance outlook:

• Q2 net sales were $23.96 billion, a 1.6% year-over-year increase.
• Adjusted EPS was $4.33, beating the estimate of $4.24.

Lowe's anticipates adjusted EPS of $12.20 to $12.45 for FY2026.

Estée Lauder's Sharp Decline

Estée Lauder's stock fell over 15% in pre-market trading due to an 8% year-over-year revenue decline forecast for FY2025.

• Q4 net sales were $3.41 billion, slightly above the estimate of $3.40 billion.
• Adjusted EPS was $0.09, exceeding the forecast of $0.073.

Estée Lauder expects a diluted net loss of $3.15 per share for FY2025.

Other Notable Movements

• James Hardie fell over 27% after reporting Q1 net sales of $899.9 million, below expectations.
• Hertz surged over 14% after announcing plans to sell used vehicles on Amazon.
• Alcon dropped over 12% due to ongoing tariff impacts and lowered sales expectations.

Government's Stake in Chipmakers

The U.S. government is considering acquiring stakes in chip manufacturers, including Intel, Micron, and TSMC, as part of a subsidy exchange program.

Federal Reserve's Upcoming Meeting Minutes

Investors are keenly awaiting the release of the Federal Reserve's July meeting minutes, which may reveal internal divisions regarding interest rate policies.

AI Stocks Experience Sell-Off

AI-related stocks, including Nvidia and Palantir, faced significant sell-offs, attributed to a report from MIT warning of potential overvaluation in AI investments.

Cryptocurrency Summit in Jackson Hole

A blockchain summit is set to take place in Jackson Hole, featuring high-profile attendees, including SEC officials and members of the Trump family, highlighting the growing political influence of the cryptocurrency industry.

Powell's Upcoming Speech

Jerome Powell's upcoming speech at the Jackson Hole conference is expected to address the Federal Reserve's monetary policy framework, which could have lasting implications beyond his tenure.

U.S. Deficit Crisis

A recent report indicates that the U.S. federal budget deficit is projected to exceed previous estimates by nearly $1 trillion over the next decade, largely due to tax and spending policies.