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Stock futures are rising after three straight days of declines for major indexes; chip stocks are leading the rebound as volatility in the AI trade persists; several big-name companies reported earnings this morning ahead of Big Tech results tomorrow; Nebius shares are surging on news Nvidia as increased its stake in the Dutch AI infrastructure company; and SpaceX shares are rising after closing lower for the seventh consecutive sessions. Here’s what you need to know today.
Stock Futures Rise After 3 Straight Days of Losses
Stock futures are pointing to a higher open for major indexes as chip stocks rally and investors digest a slew of earnings reports. Futures tied to the tech-focused Nasdaq were up 1.3% recently, while futures linked to the Dow Jones Industrial and the S&P 500 added 0.2% and 0.4%, respectively. The major indexes have lost ground in each of the past three sessions. WTI crude oil futures were up 1.7% at $84.60 per barrel, trading near their highest levels in more than a month, as fighting between the U.S. and Iran continues. Gold futures rose 1% to $4,060 an ounce, while bitcoin was holding steady around $64,300. The yield on the 10-year Treasury note, which affects interest rates on all sorts of loans, was little changed at 4.60%, near a two-month high.
Chip and Memory Stocks Surge
Shares of chipmakers and data storage companies are surging this morning amid ongoing volatility in the AI trade. The iShares Semiconductor ETF (SOXX) was up 4.5% as Advanced Micro Devices (AMD), Intel (INTC) and Marvell Technology (MRVL) each rose more than 4%, while Nvidia (NVDA) and Broadcom (AVGO) also gained ground. The Roundhill Memory ETF (DRAM) climbed nearly 7% as shares of Micron (MU), SK Hynix (SKHY), Sandisk (SNDK), Western Digital (WDC) and Seagate Technology (STX) jumped.
Nebius Stock Jumps on News of Nvidia Stake
Shares of Nebius Group (NBIS) were sharply higher following a regulatory disclosure showing that Nvidia (NVDA) has built a 9.3% stake in the Amsterdam-based AI infrastructure company. Nvidia, which first disclosed a small stake in Nebius early last year, announced in March this year that it would invest $2 billion in the company to expand its partnership. At the time, Nvidia CEO Jensen Huang said that the two companies were “scaling the cloud to meet the surging global demand for intelligence.” U.S.-traded shares of Nebius, which have gained roughly 250% over the past year, were up 7% in recent premarket trading.
Investors Digest a Flurry of Earnings Reports
Several major companies reported earnings this morning as investors prepare for even bigger names to release results in the coming days. Among the stocks on the move, Dow component 3M (MMM) rose 6% after the conglomerate reported better-than-expected results and raised its outlook, while shares of pharmaceutical company Novartis (NVS) added 3% after a strong report. Shares of defense contractor Northrop Grumman (NOC), oilfield services company Halliburton (HAL), healthcare technology company Danaher (DHR) and General Motors (GM) fell. The earnings calendar is heavier in the coming days, and investors will be paying particularly close attention to results coming late Wednesday from Alphabet (GOOGL), Tesla (TSLA), International Business Machines (IBM) and Texas Instruments (TXN).
SpaceX Stock Rises After Hitting New Lows
SpaceX (SPCX) shares are slightly higher this morning after closing lower for the seventh consecutive session on Monday. The stock has lost about one-fifth of its value over that stretch and is down nearly 50% from the record high above $225 set on July 16, just a few days after the company’s historic IPO. SpaceX is expected to release its first earnings report as a public company next month. Shortly after that, certain lock-ups that prohibit early investors and employees from selling the stock will expire, which could produce more volatility. SpaceX stock was up 1.5% in recent premarket trading.
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