US Stock Market Preview: Trump, Musk at Davos, and Rising Tech Stocks

US Stock Futures Rise Ahead of Market Open

As of Thursday morning, US stock futures are all up, with the Dow Jones futures rising by 0.24%, Nasdaq futures by 0.81%, and S&P 500 futures by 0.50%.

Notable Pre-Market Movements

• Tech Stocks:
  • Alibaba (BABA) up over 4%
  • Micron Technology (MU) and ASML up over 2%
  • AMD, Google (GOOGL), and Meta Platforms (META) nearly 2%
  • Intel (INTC) and Tesla (TSLA) up over 1%

• Chinese Stocks:

  • Alibaba (BABA) up nearly 4%
  • Li Auto (LI) up over 3%
  • TSMC (TSM) and Baidu (BIDU) up over 1%

• Storage Stocks:

  • Rambus (RMBS) up over 6%
  • Western Digital (WDC) and Pure Storage (PSTG) up over 3%

• Rare Earth Stocks:

  • Critical Metals (CRML) up over 6%
  • USA Rare Earth (USAR) and TMC the metals (TMC) up over 4%

Alibaba's Chip Company Plans IPO

Reports indicate that Alibaba (BABA) is supporting its chip subsidiary, Pingtouge, for an independent IPO. This company has been a low-profile asset for Alibaba since its establishment in 2018.

Other Notable Pre-Market Performances

• GE Aerospace (GE): Up over 5% after reporting a 20% year-on-year revenue increase.
• Moderna (MRNA): Up over 5% following positive five-year data on its mRNA cancer vaccine.
• Critical Metals (CRML): Up nearly 6% after signing a memorandum to establish a rare earth processing plant in Saudi Arabia.

Market Insights

Ray Dalio, founder of Bridgewater, noted that markets are diversifying asset allocations and reducing reliance on US assets, particularly among central banks globally.

Greenland Pension Fund's Consideration

The Greenland SISA pension fund, managing approximately $1.1 billion, is contemplating reducing its US stock investments in response to geopolitical pressures.

Trump's Peace Committee Invitation

President Trump has invited several countries to join a peace committee, causing mixed reactions among global leaders, with some expressing concerns about potential repercussions for non-participation.

Elon Musk's Appearance at Davos

Elon Musk is set to make his first appearance at the World Economic Forum, scheduled to speak alongside BlackRock's CEO Larry Fink.

Economic Indicators to Watch

Key economic data releases include initial jobless claims and the final GDP growth rate for Q3, which will be closely monitored by investors.

This summary captures the key movements and insights from the pre-market activities in the US stock market, highlighting significant stocks and economic considerations.