US Stock Market Outlook: Government Reopening, Mixed Futures, Nvidia Drops, NBIS Stock Offering

US Stock Market Pre-Market Update

On Tuesday morning, US stock index futures showed mixed results. The Dow futures rose by 0.03%, while the Nasdaq futures fell by 0.35%, and the S&P 500 futures decreased by 0.18%.

Major Tech Stocks

Pre-market trading saw declines in major tech stocks, with Nvidia (NVDA) dropping over 2%, and both Meta Platforms (META) and Oracle (ORCL) falling more than 1%.

Chinese Stocks

Conversely, popular Chinese stocks saw gains, with Hesai (HSAI) up nearly 7%, Xpeng Motors (XPEV) rising over 5%, and NIO increasing more than 3%.

Gold Stocks

Gold stocks were active, with Harmony Gold (HMY) rising over 4%, AngloGold Ashanti (AU) up nearly 3%, and Barrick Mining (B) and others gaining more than 1%.

Storage Sector

The storage sector faced widespread declines, with SanDisk Corp (SNDK) and Rambus (RMBS) dropping over 1%, while Micron Technology (MU) and Western Digital (WDC) fell close to 1%.

SoftBank's Nvidia Sale

SoftBank has sold its Nvidia shares for $5.83 billion, impacting Nvidia's pre-market performance. The company reported a net sales figure of 1.92 trillion yen for Q2 FY2025, with a net profit of 2.92 trillion yen for the first half of the year.

Tesla's Expansion Plans

Tesla is preparing to expand its Texas Gigafactory to produce 10 million units of its humanoid robot, Optimus. The majority of production capacity for the Optimus project will be based in Texas, with mass production expected to start in 2027.

Meta Platforms and NEBIUS

Meta Platforms experienced a sharp decline, dropping nearly 2% amid news that its chief AI scientist plans to leave. NEBIUS also faced volatility, initially dropping nearly 8% before recovering, despite reporting Q3 revenue of $146 million, which fell short of expectations.

Xpeng Motors Surge

Xpeng Motors saw a pre-market increase of over 5%, with its Hong Kong stock rising nearly 18%, marking its largest single-day gain since July 2023.

Hesai's Strong Q3 Performance

Hesai reported a net profit of 288 million yuan for Q3, reversing losses from the previous year, and raised its full-year profit guidance.

CoreWeave and Rocket Lab

CoreWeave's Q3 revenue exceeded expectations at $1.36 billion, but the company lowered its full-year revenue guidance. Rocket Lab also reported strong Q3 results, with revenue of $155 million, leading to a pre-market increase of over 9%.

Apple Launches New Accessory

Apple has launched the iPhone Pocket in collaboration with Issey Miyake, priced starting at 1,299 yuan, set to be released on November 14.

TSMC's Capacity Constraints

TSMC's advanced N3 process capacity is nearing its limits due to high demand from AI giants like Nvidia, potentially boosting its profit margins significantly.

Qualcomm's Valuation

JPMorgan has identified Qualcomm as potentially the "cheapest AI semiconductor stock" in the US market, maintaining an overweight rating on the company.

Market Outlook

The US Senate has passed a temporary funding bill, potentially ending the government shutdown. Meanwhile, the Federal Reserve's stance on interest rate cuts remains uncertain as economic data is expected to be released soon.

Conclusion

Investors should keep an eye on upcoming earnings reports and market developments, especially in the tech and AI sectors, as they continue to drive market trends.