US Stock Market Outlook: Indices Decline, Tesla Drops, Quantum Stocks Surge.

US Pre-Market Update: Major Indices and Stocks

On Thursday morning, US stock futures showed a slight decline, with the Dow futures down 0.21% and Nasdaq futures down 0.28%.

Key Stock Movements

• Tesla fell nearly 4% post-earnings, while Micron dropped over 2%.
• In contrast, many popular Chinese stocks saw gains, with Baidu and Li Auto rising over 2%, and Alibaba, Xpeng, JD.com, and GDS increasing by more than 1%.

Quantum Computing Stocks Surge

The Trump administration is considering investments in several quantum computing firms, leading to significant gains: QBTS surged nearly 12%, IONQ rose 9%, and QUBT climbed close to 9%.

Cryptocurrency Market Rebounds

The cryptocurrency market experienced a collective rebound, with notable increases in crypto reserve concepts. CLSK rose nearly 2%, while MSTR and BMNR gained over 1%.

Tesla's Earnings Call Highlights

Following Tesla's earnings report, CEO Elon Musk adjusted the company's focus from electric vehicles to artificial intelligence and Robotaxi services, stating that Tesla is at a "critical moment."

• Musk delayed the mass production timeline for the Optimus robot, originally set for this year, and narrowed the Robotaxi service expansion from covering 50% of the US population to just 8-10 cities.

Uber's Electric Vehicle Initiative

As demand for electric vehicles cools in the US, Uber announced a $4,000 subsidy for drivers to switch to new electric cars. This initiative is part of Uber's commitment to 100% electric vehicle rides by 2030.

Micron's New Product Launch

Micron Technology reported a 2% drop pre-market, announcing the official sample delivery of its 192GB SOCAMM2 module to clients, aiming to expand low-power memory applications in AI data centers.

Baidu's Robotaxi Testing in Switzerland

Baidu is set to launch Robotaxi testing in Switzerland by the end of the year, in collaboration with PostBus, marking a significant step in its efforts to introduce autonomous taxi services in Europe.

Market Outlook and Predictions

Despite current investor pessimism, Fundstrat's Tom Lee predicts the S&P 500 could reach 7,000 points by year-end, citing historical patterns of negative sentiment during bull markets.

Energy Sector Insights

Morgan Stanley's report indicates that retail investors are increasingly viewing gold as a hedge against stock risk, potentially leading to a significant rise in gold prices if allocations increase.

Oil Prices Surge Due to Sanctions

US sanctions against Russian oil companies have triggered a sharp rise in international oil prices, with US crude oil increasing by 6%. Analysts suggest that the impact of these sanctions will depend on how India responds and whether Russia can find alternative buyers.