US Stock Outlook: G7 Discusses Reserves, Oil Gains Narrow; Lumentum Rises Ahead of S&P 500 Inclusion

US Stock Market Update

As of Monday morning, US stock index futures have narrowed their losses, with all three major indices down over 1%.

Major Tech Stocks

Most prominent tech stocks are experiencing declines in pre-market trading:

• Tesla (TSLA) is down nearly 2%.
• Micron Technology (MU), Google (GOOG), Microsoft (MSFT), and AMD are all down over 1%.
• Nvidia (NVDA) has dropped close to 1%.

Chinese Stocks

Chinese stocks are mixed in pre-market trading:

• Kingsoft Cloud (KC) has surged over 14%.
• Xpeng Motors (XPEV) is up more than 2%.
• Pinduoduo (PDD) and JD.com (JD) have seen slight declines.

Oil Sector Surge

International oil prices have skyrocketed, leading to significant gains in US oil stocks:

• EON Resources (EONR) is up over 38%.
• Trio Petroleum (TPET) has risen over 20%.
• Battalion Oil (BATL) is up over 11%.
• Occidental Petroleum (OXY) has increased by over 1%.
• The US Oil ETF (USO) has jumped nearly 13%.

Notable Corporate Developments

Tesla's Investment in Nvidia

Tesla's significant shareholder, billionaire Leo KoGuan, has made a second large purchase of Nvidia shares, acquiring 1 million shares amid a global sell-off triggered by the Middle East conflict. This brings his total holdings to 2 million shares within a week.

Apple’s Foldable iPhone

Apple (AAPL) has increased its inventory for the upcoming foldable iPhone by 20%. Key components are expected to ship between Q2 and Q3 of this year, with a launch planned before the end of the year.

Oracle and OpenAI Project Update

Oracle (ORCL) and OpenAI have abandoned plans to expand a Texas data center due to stalled financing negotiations. This project was part of the $500 billion Stargate initiative.

Alibaba Management Changes

Alibaba (BABA) has announced new management arrangements for its Qwen model following the sudden departure of Lin Junyang. Zhou Jingren will oversee the Qwen model's development.

Hims & Hers Health Surge

Hims & Hers Health (HIMS) shares surged 42% after Novo Nordisk (NVO) announced plans to sell its weight loss drug on Hims' platform, resolving a previous legal dispute.

Global Economic Concerns

G7 Meeting on Oil Reserves

G7 finance ministers are holding an emergency meeting to discuss a coordinated release of strategic oil reserves in response to rising oil prices due to the Gulf conflict.

US-Israel Relations

Tensions have arisen between the US and Israel over military actions against Iran, with the US expressing dissatisfaction over the scale of Israel's attacks.

Market Sentiment

Traders are shifting from short-term conflict expectations to a more cautious outlook, with concerns about inflation and potential market downturns. Historical data suggests that the S&P 500 typically rebounds after geopolitical events.