US Stock Outlook: Trump on Iran Nuclear Deal, Tech Stocks Decline, Quantum Stocks Rise.

US Stock Market Overview

Pre-Market Trends

On Tuesday morning, despite easing tensions between the US and Iran, technology stocks faced pressure, leading to declines in major US stock futures. As of now, Dow futures are down 0.37%, Nasdaq 100 futures are down 2.69%, and S&P 500 futures are down 1.26%.

Notable Stock Movements

• Star Tech Stocks: Most are down pre-market, with ASML dropping over 7%, Micron Technology and Intel down over 6%, AMD nearly 6%, while Tesla and Nvidia are down over 2%. Microsoft is up over 1%, and SpaceX is up nearly 1%.

• Storage Sector: Weakness is evident, with SanDisk down nearly 8%, and Micron, Western Digital, and Seagate down over 6%.

• AI Chip Stocks: Generally down, with Intel down nearly 6%, AMD over 5%, Broadcom nearly 4%, and Google down nearly 2%. IBM, however, is up nearly 6%.

• Gold Prices: Continuing to decline, with Kinross Gold and Newmont Mining down over 3%. Deutsche Bank has significantly lowered its gold price forecast, impacting market confidence.

Key Developments

• Quantum Computing: Stocks in this sector mostly rose, with Infleqtion up over 7% and IBM up over 5%. President Trump signed an executive order to accelerate the development of high-performance quantum computers.

• Tesla's New Project: Tesla has secured a $5 billion deal with NatPower to develop battery storage projects in Italy and the UK, aiming for over 100 GWh of storage capacity.

• IBM's Recognition: Trump praised IBM's CEO during the quantum computing executive order signing, leading to a pre-market rise of over 5% in IBM's stock.

• Qualcomm's Acquisition Talks: Qualcomm is in discussions to acquire AI chip company Modular for approximately $4 billion, which could strengthen its position against Nvidia.

• Cerebras Systems: The AI chip manufacturer is set to release its first quarterly earnings report, with analysts optimistic about its performance due to partnerships with OpenAI and Amazon.

• SpaceX's AI Blueprint: Oppenheimer remains bullish on SpaceX, maintaining a "buy" rating and a target price of $250, citing its potential in the AI infrastructure market.

Market Sentiment

The overall sentiment in the market is cautious, particularly towards large tech stocks, as investors await further developments in US-Iran negotiations. The recent sell-off in tech stocks has also affected Asian markets, ending an eight-day rally.

Conclusion

The market is currently experiencing volatility, with significant movements in tech stocks and ongoing geopolitical developments influencing investor sentiment. The focus will remain on upcoming earnings reports and economic indicators.