US Stock Market Outlook: Indices Down, Trump Boosts Defense Spending, Gold and Silver Stocks Struggle.

US Stock Market Overview

As of Thursday morning, US stock futures are collectively down, with the Dow futures falling by 0.37%, Nasdaq futures down 0.25%, and S&P 500 futures decreasing by 0.19%.

Major Tech Stocks

Most star tech stocks are slightly up pre-market, including:

• Google (GOOG)
• Nvidia (NVDA)
• AMD (AMD)
• Amazon (AMZN)

However, Apple (AAPL) has dropped over 1%.

Chinese Stocks Performance

Among popular Chinese stocks, there are mixed results:

• Xpeng Motors (XPEV) and Kingsoft Cloud (KC) are up over 1%.
• Pinduoduo (PDD) and Baidu (BIDU) have fallen over 1%.

Defense Sector Surge

Trump's announcement of an expansion plan has reignited interest in defense stocks, with Lockheed Martin (LMT) soaring nearly 8% pre-market.

Precious Metals Market

Spot silver (XAG/USD) briefly fell below $75 per ounce, dropping over 4% during the day. Precious metal stocks are under pressure, with First Majestic Silver (AG) and Endeavour Silver (EXK) down over 4%, while Coeur Mining (CDE), Pan American Silver (PAAS), and Gold Fields (GFI) have dropped over 3%.

Drone Sector Strength

The drone sector is gaining traction, with Kratos Defense (KTOS) and AeroVironment (AVAV) rising over 12%, and Ondas Holdings (ONDS) up over 10%.

Nvidia's Influence

Applied Digital (APLD), associated with Nvidia, is up over 5% pre-market, reporting a 250% year-on-year revenue growth for Q2 of fiscal year 2026.

Samsung's Record Profits

Samsung Electronics has reported a staggering 208% increase in operating profit for Q4 2025, driven by rising prices in storage chips due to AI demand. This marks the highest quarterly operating profit in Samsung's history, with a 125% increase in stock price for 2025.

Goldman Sachs Insights

Goldman Sachs highlighted that the demand for AI infrastructure is evolving, with a shift towards "embodied AI" and "agent AI". They emphasize the need for hardware that supports complex reasoning capabilities.

TSMC's 3nm Process Demand

TSMC is experiencing high demand for its 3nm process, leading to increased prices and a temporary halt on new projects. The company is encouraging clients to consider transitioning to 2nm processes.

Upcoming Non-Farm Payroll Report

The December non-farm payroll report is expected to show significant job growth, but analysts warn that the unemployment rate nearing 5% could influence the Federal Reserve's next steps. Predictions for job additions range widely from 25,000 to 155,000.

Precious Metals Adjustment

The precious metals market is undergoing a liquidity shock due to index rebalancing, with gold prices dropping to around $4420. This adjustment is linked to the Bloomberg Commodity Index's annual weight rebalancing, which began on January 8.

Gold Surpassing US Treasuries

Recent data suggests that gold may have surpassed US Treasuries as the world's top reserve asset, with global official gold reserves exceeding 900 million ounces, valued at approximately $3.82 trillion.