US Stock Market Outlook: Futures Drop, Silver Falls After High, DigitalBridge Surges on Acquisition News

Market Overview

On Monday morning, all three major U.S. stock index futures fell, with Dow futures down 0.11%, Nasdaq futures down 0.42%, and S&P 500 futures down 0.25%.

Pre-Market Movements

Star tech stocks, including Oracle (ORCL), Tesla (TSLA), Nvidia (NVDA), and Micron Technology (MU), all dropped over 1%.

Popular Chinese stocks also saw declines, with Pony.ai (PONY) down over 3%, Alibaba (BABA) nearly 3%, and Xpeng Motors (XPEV), Li Auto (LI), and Baidu (BIDU) down over 2%.

Commodity Market

In the commodities market, metals retreated across the board. Gold fell below $4500, and silver dropped nearly 5%. Lithium carbonate and platinum contracts in the domestic market hit the limit down. Silver prices initially surged to nearly $84 per ounce before plummeting to $75 per ounce.

Palladium and platinum contracts also hit the limit down, both down 10%.

Financial News

Nvidia's Strategic Partnership

Citigroup expressed optimism regarding Nvidia's $20 billion non-exclusive licensing deal with AI chip startup Groq, maintaining a "Buy" rating with a target price of $270. This partnership is seen as a strategic move to enhance Nvidia's product roadmap amid rising competition.

SoftBank's Acquisition Talks

SoftBank is reportedly in advanced talks to acquire DigitalBridge Group (DBRG), a private equity firm focused on data centers, with shares rising over 28% pre-market.

Intel's Collaboration with Mellanox

Intel (INTC) has reached a preliminary cooperation agreement with Mellanox Technologies to sell 214.8 million shares, valued at $5 billion.

Abivax's Positive Outlook

Guggenheim has upgraded Abivax (ABVX) to a "Buy" rating, raising the target price from $150 to $175 based on optimistic data for its core drug, obefazimod.

Sector Insights

Defense Sector Growth

Citigroup predicts a structural increase in global defense demand, highlighting Raytheon Technologies (RTX) as a key beneficiary due to its higher international revenue exposure.

Coupang's Compensation Plan

South Korean e-commerce giant Coupang (CPNG) announced a compensation plan of approximately $11.7 billion for 34 million users affected by a data breach.

Comcast's Valuation Concerns

Comcast (CMCSA) is among the lowest-valued stocks in the S&P 500, with a significant drop in share price despite a high dividend yield. Analysts suggest that market pessimism regarding its broadband business may be overstated.

NIO's Positive Performance

NIO (NIO) saw a nearly 1% increase pre-market, buoyed by news of reaching a delivery milestone and expanding its battery swap network.

TSMC's Production Plans

TSMC (TSM) confirmed that its 2nm technology will begin mass production in Q4 2025, with price increases for advanced processes expected from 2026.

Conclusion

The market is experiencing a mix of declines in tech and commodity sectors, while strategic partnerships and acquisitions are shaping the financial landscape. Investors are advised to stay informed on these developments as they could impact market dynamics moving forward.