US Stock Market Outlook: Rising Bond Yields, Mixed Futures, AI Stocks Up

US Stock Futures Decline Ahead of Market Open

As of the latest update, US stock futures for the three major indices are all down. The Dow futures fell by 0.18%, Nasdaq futures dropped by 0.78%, and S&P 500 futures decreased by 0.42%.

Pre-Market Movements in Tech Stocks

Most major tech stocks are experiencing declines in pre-market trading. Micron Technology is down over 2%, Intel and AMD are both down nearly 2%, while Tesla has dropped over 1%. Nvidia and Apple are also down close to 1%. Conversely, Microsoft has risen over 1%, and Google has seen a slight increase.

Mixed Results for Chinese Stocks

Chinese stocks are showing mixed results in pre-market trading. Amer Sports is up over 3%, Alibaba has increased by more than 1%, while Pinduoduo and Baidu have seen slight gains. However, Bilibili is down over 5%, and both TSMC and NIO are down nearly 2%.

AI Application Software Stocks Rise

AI application software stocks are trending upwards in pre-market trading. ServiceNow has surged nearly 6%, SAP SE is up close to 5%, and Snowflake has increased by over 3%. Bank of America has resumed coverage on ServiceNow with a "Buy" rating and a target price of $130, citing its potential to benefit from the AI wave.

Bilibili Reports Q1 Earnings

Bilibili reported a net revenue of RMB 7.47 billion ($1.08 billion) for Q1 2026, a year-on-year increase of 7%. The company also reported a net profit of RMB 202 million ($29.3 million), compared to a net loss in the same period last year.

Google and Blackstone to Form AI Cloud Company

According to the Wall Street Journal, Google and Blackstone plan to establish a new AI cloud computing company, with Blackstone investing $5 billion for a majority stake. Google will provide hardware and software for the new venture.

Stellantis and Leap Motor Collaboration

Stellantis is reportedly planning to collaborate with Leap Motor to produce an affordable electric vehicle in Italy, aiming to reduce costs and enhance competitiveness.

SoftBank Launches $40 Billion Loan Program

SoftBank has launched a $40 billion syndicated loan program to support its investment in OpenAI.

Intel Urges PC Makers to Use New Chips

Intel is reportedly urging its PC partners to increase the adoption of its new 18A chips, which began mass production last year.

AMD's CEO Discusses AI's Impact on CPUs

At AMD's AI Developer Day, CEO Lisa Su stated that AI is reshaping the demand for computing, predicting a shift in the CPU to GPU ratio from 1:4 to 1:1 by 2026.

Sony Increases PS Plus Subscription Fees

Sony has announced an increase in subscription fees for new PlayStation Plus users, effective May 20.

Tesla Abandons India Factory Plans

Tesla has officially decided to abandon its plans to build a factory in India, citing various challenges including supply chain issues and prolonged negotiations with the Indian government.

US Treasury Yields Near 2007 Highs

US Treasury yields are approaching their highest levels since 2007, raising concerns among investors about potential sell-offs.

Iran's Stance on Negotiations

An Iranian parliament member stated that Iran has never left the negotiation table and emphasized the importance of respect in discussions.

US-China AI Dialogue Agreement

The US and China have agreed to initiate government-level dialogues on AI regulation, as confirmed by a Chinese Foreign Ministry spokesperson.

Asian Chip Export Trends

Oxford Economics reports a record divergence in Asian chip export prices and volumes, indicating strong pricing power for advanced chips despite lower volumes.