US Stock Market Outlook: Historic Drop, V-Shaped Rebound, Trump’s $12 Billion Plan, Oracle Rises.

US Stock Market Overview

As of Monday morning, US stock futures showed a narrowing decline. The Dow futures were down 0.08%, having previously dropped nearly 1%. The Nasdaq futures fell 0.63%, with a peak decline of over 1.8%, while the S&P 500 futures were down 0.37%, previously dipping over 1.3%.

Major Tech Stocks

Most major tech stocks were down in pre-market trading.

• Micron Technology (MU) rose nearly 1%.
• Oracle (ORCL) turned from a decline to a gain of over 5%.
• Tesla (TSLA), Nvidia (NVDA), and AMD fell over 1%.

Chinese Stocks

Popular Chinese stocks also saw widespread declines:

• Xpeng Motors (XPEV) dropped over 4%.
• Baidu (BIDU), NIO (NIO), and New Oriental (EDU) fell over 1%.
• Pinduoduo (PDD) rose over 1%.

Rare Earth Stocks Surge

US rare earth stocks experienced a rapid increase in pre-market trading:

• NioCorp Developments (NB) surged over 9%.
• Critical Metals (CRML) rose over 8%.
• United States Antimony (UAMY) increased over 7%.

Reports indicate that Trump plans to initiate a $12 billion strategic critical minerals reserve project, known as "Project Vault," aimed at protecting US manufacturers from supply shocks.

Cryptocurrency Market Update

Cryptocurrency prices fell sharply over the weekend. Bitcoin (BTC.CC) briefly dipped below $75,000 but later recovered above $77,000. Ethereum (ETH.CC) also fell below $2,200 before rising above $2,300.

Cryptocurrency-related stocks fell in pre-market trading:

• MicroStrategy (MSTR) dropped nearly 7%.
• Bitmine Immersion Technologies (BMNR) fell nearly 10%.
• CleanSpark (CLSK) declined over 5%.

Gold and Silver Prices

Gold prices fell to around $4,400 before recovering to above $4,700, with pre-market losses narrowing to 2%. Silver prices dipped to $71.36 before rising above $83.

Energy Sector Decline

Oil prices fell, leading to a collective decline in US energy company stocks:

• Apache Corporation (APA) and EQT Energy (EQT) fell over 3%.
• Occidental Petroleum (OXY) and Devon Energy (DVN) dropped over 2%.

Semiconductor Industry Update

TSMC is facing a capacity crunch for its 2nm process, with Apple securing the first batch of production. Nvidia and AMD are also vying for advanced nodes, leading to supply shortages expected to last until 2027.

Tesla's Breakthrough in Battery Technology

Elon Musk confirmed that Tesla has achieved large-scale production of dry electrode batteries, marking a significant advancement in lithium battery technology. This innovation is expected to reduce manufacturing costs and improve battery performance.

Upcoming Tesla Products

Tesla announced that its third-generation Optimus robot will debut in Q1 2026, with a production target of 1 million units annually.

SpaceX Financials

Reports indicate that SpaceX earned approximately $8 billion in EBITDA last year, with Starlink contributing at least 50% of revenue. The company is expected to go public around Musk's 55th birthday.

Oracle's Financing Plan

Oracle initiated a $50 billion financing plan to address cash flow issues and avoid a liquidity crisis, following a significant drop in stock price.

Nvidia's Investment in OpenAI

Nvidia's CEO Jensen Huang clarified that the proposed $100 billion investment in OpenAI is not a commitment but will be considered in stages.

Apple’s Foldable iPhone Exploration

Apple is reportedly exploring the possibility of launching a clamshell foldable iPhone after its first foldable model is released later this year.

Market Sentiment and Predictions

Morgan Stanley predicts that the Fed's policy will not change significantly in the short term, with any adjustments likely postponed until next year.

Conclusion

The market is currently facing various pressures, including declines in major tech stocks, fluctuations in cryptocurrency values, and challenges in the semiconductor industry. Investors are advised to stay informed and cautious as these developments unfold.