US Stock Market Outlook: Trump on Iran, Berkshire's Cash Plans, and Micron's Surge.

Written by Michael A. Johnson, Lead Editor & Market Strategist

Market Overview

On Tuesday morning, U.S. stock futures rose collectively after former President Trump expressed a willingness to end the war. As of the latest update, Dow futures were up 1.22%, Nasdaq futures increased by 1.18%, and S&P 500 futures rose by 1.19%.

Major Tech Stocks

Most major tech stocks saw gains in pre-market trading, with notable increases over 1% for:

Nvidia (NVDA)
Meta Platforms (META)
Microsoft (MSFT)
Alphabet (GOOGL)
Amazon (AMZN)
AMD

Chinese Stocks

Chinese stocks showed mixed results in pre-market trading. NIO rose over 1%, while Trip.com fell more than 1%.

Notable Company News

Marvell Technology (MRVL) surged over 11% after Nvidia announced a $2 billion investment to collaborate on silicon photonics technology.
CoreWeave (CRWV) rose nearly 5% after announcing a significant $8.5 billion financing arrangement.
Warren Buffett indicated that Berkshire Hathaway (BRK.B) would utilize cash if the market experiences a significant downturn, as stock valuations remain unattractive.

Nebius Expansion

Nebius (NBIS) rose over 6% as it announced plans to build a super data center in Finland, aiming to meet the growing demand for AI computing power. The project is estimated to exceed $10 billion.

M&A Activity

Centessa Pharmaceuticals (CNTA) jumped 44% as Eli Lilly announced plans to acquire the company for $38 per share.
Apellis Pharmaceuticals (APLS) soared nearly 140% after Biogen agreed to acquire it for $5.6 billion, marking one of Biogen's largest acquisitions.

Market Sentiment

Morgan Stanley noted that bad news has been fully priced in, and Meta's AI could evolve into a new growth engine. They believe Meta's current valuation is significantly undervalued compared to peers.

Oil Market Concerns

Morgan Stanley warned that the oil market is entering a substantial supply shortage phase, with the effective blockade of the Strait of Hormuz entering its fourth week. This situation is expected to impact global oil prices significantly.

Economic Indicators

The average price of gasoline in the U.S. has risen to over $4 per gallon, posing challenges for Trump's economic agenda as midterm elections approach.

Conclusion

The market is reacting to geopolitical tensions and economic indicators, with significant movements in tech stocks and ongoing M&A activity shaping investor sentiment.

About the author

Michael A. Johnson

Michael A. Johnson, Ph.D. in Economics from Harvard University, brings 20 years of expertise in market forecasting and trading strategies. As a former chief economist at Morgan Stanley, he oversees Intellectia’s Top News section, delivering data-driven perspectives on global economic shifts.