US Stock Market Outlook: Futures Rise, Regional Banks Recover, Drug Prices Expected to Drop

Trump Comments on Tariffs Impact US Futures

On Friday morning, former President Trump stated that high tariffs on Chinese goods are unsustainable, suggesting that the US could have a good relationship with China. This led to a short-term rise in US stock futures, with the Dow futures up 0.13%, while Nasdaq and S&P 500 futures fell by 0.28% and 0.08%, respectively.

Pre-Market Movements in Tech Stocks

Star tech stocks saw a narrowing of pre-market losses, with Oracle down over 2%, Micron and Intel down over 1%, and Nvidia, Tesla, and Broadcom nearly 1% lower.

Chinese Stocks and Regional Banks

Most popular Chinese stocks fell in pre-market trading, with Kingsoft Cloud down over 3%, and NIO and Xpeng down over 2%. Some regional banks, however, saw gains, with Zion Bank up over 4%.

Regional Bank Crisis

Zion Bank disclosed a $60 million provision for two loans, writing off $50 million, which is about 5% of its expected earnings for 2025. Goldman Sachs commented that the market's reaction to a single borrower's disclosure seems "a bit crazy," especially as this marks the third suspected fraud case in a month.

Drug Pricing and FDA Approvals

Novo Nordisk and Eli Lilly saw pre-market declines of nearly 4% after Trump announced that the price of a weight-loss drug would significantly drop. The current price of Ozempic is around $1,000 per month, but negotiations are still ongoing.

Oracle's AI Cloud Margins

At the AI World Conference, Oracle's co-CEO announced that a six-year AI infrastructure project could achieve a gross margin of 35%. Oracle has signed new cloud infrastructure contracts worth $65 billion.

Micron's Sales Strategy

Micron Technology announced it would stop selling server chips to Chinese data centers but will continue to serve two Chinese clients, including Lenovo.

Starbucks Evaluates Bids for China Business

Starbucks is assessing proposals from five bidders for its China business, with the deal estimated to exceed $10 billion.

Jobless Claims Data

JPMorgan and Goldman Sachs reported a decrease in initial jobless claims, with the number falling to 217,000 for the week ending October 11.

Upcoming Meetings and Trade Relations

Russian officials confirmed a potential meeting between Presidents Putin and Trump in the coming weeks. Meanwhile, China's Ministry of Commerce urged the US to correct its trade practices and adhere to WTO rules.

Defense Department Cancels Cobalt Procurement

The US Department of Defense has canceled a cobalt procurement bid worth up to $500 million, which was intended for strategic reserves.