US Stock Market Outlook: Talks Pause, Active Pre-Market for Top Stocks, IONQ Soars 13%

Market Overview

On Thursday morning, despite Nvidia's (NVDA) earnings exceeding expectations, the market reaction was muted. The three major US stock index futures showed little movement, with the Dow futures up 0.05%, Nasdaq futures up 0.01%, and S&P 500 futures up 0.04%.

Pre-Market Movements

• Star Tech Stocks:

  • Star Tech stocks fell, with Salesforce (CRM) down over 3%, and Tesla (TSLA), AMD, and Intel (INTC) each down nearly 1%.

• Popular Chinese Stocks:

  • Most Chinese stocks declined, with Trip.com (TCOM), Bilibili (BILI), and Li Auto (LI) down over 4%, and Xpeng Motors (XPEV) down over 3%. Alibaba (BABA) and Baidu (BIDU) fell over 2%.

• Quantum Computing Stocks:

  • IonQ Inc (IONQ) surged over 13% post-earnings, while Rigetti Computing (RGTI) and Quantum Computing (QUBT) rose over 4% and 3%, respectively.

• Korean ETFs:

  • Korean ETFs saw gains, with Direxion Daily South Korea Bull 3X Shares (KORU) up over 12%.

Nvidia's Earnings Report

Nvidia's stock rose over 1% in pre-market trading after reporting earnings that exceeded expectations for the 14th consecutive quarter. However, concerns about the sustainability of AI demand and supply constraints have shifted market focus. Goldman Sachs reiterated a "Buy" rating on Nvidia, projecting a price target of $250.

Key Developments

SK Hynix and SanDisk Collaboration

SK Hynix and SanDisk are advancing the global standardization of High Bandwidth Flash (HBF) memory, aiming to fill the gap between HBM and SSDs. This technology is optimized for AI inference and is expected to be commercialized by 2027.

IonQ's Strong Q4 Performance

IonQ reported a Q4 revenue of $61.9 million, a 429% year-over-year increase, leading to a pre-market surge of 13%. The company anticipates Q1 2026 revenue between $48 million and $51 million.

Baidu's Q4 Earnings

Baidu's Q4 revenue reached 32.74 billion yuan, exceeding expectations, with AI subscription revenue up 143% year-over-year. The company announced a $5 billion share buyback plan.

Tesla's New Promotion in China

Tesla has launched a limited-time promotion in China for the Model 3/Y, with a down payment starting at 79,900 yuan, aimed at boosting sales amid increasing competition.

Alibaba's AI Programming Package

Alibaba Cloud has introduced a low-cost AI programming package that integrates four major open-source models, making it unique among global cloud providers.

Economic Insights

Goldman Sachs predicts that by the end of 2026, oil prices will hit a bottom, with Brent crude expected to fall to $60 per barrel. However, a supply shortage is anticipated in the second half of 2027.

Conclusion

The market remains cautious despite strong earnings from key players like Nvidia and IonQ, with ongoing concerns about demand sustainability and competitive pressures in the tech sector.