U.S. stock futures were under pressure in the early session on Thursday, with long-term U.S. Treasury yields rising, oil prices increasing, and new doubts about the scale and financing methods of the current artificial intelligence investment boom keeping traders on alert.
As of 4 a.m. Eastern Time, the Dow Jones futures fell by 0.6%, the Nasdaq futures fell by 0.5%, the S&P 500 index futures fell by 0.3%, and the Russell 2000 index futures fell by 0.9%. The market trend was weak earlier in the week on Wednesday. The yield on 30-year U.S. Treasury bonds reached a 24-year high, and the minutes from the FOMC meeting in September indicated that there could be another interest rate hike before the end of the year.
However, on the Stocktwits platform, for the exchange-traded funds that track the S&P 500 index, SPDR S &P 500 ETF ( SPY ), as well as the one that tracks the Nasdaq 100 index, Invesco QQQ Trust ( QQQ ), retail investor sentiment remains at an "extremely bullish" level.
Meanwhile, U.S. President Donald Trump will attend a summit at the White House today, welcoming top technology leaders in Washington, and announce industry commitments worth over $1 billion for “Genesis Mission”. He will also present the National Science Medal of the United States to Elon Musk, NVIDIA CEO Jensen Huang, AMD CEO Steve Su, as well as Google co-founder Sergey Brin. Michael Dell and Microsoft CEO Satya Nadella will receive the National Technology and Innovation Medal of the United States.
Tech Radar: AI Spending, Chips, and Cloud
Broadcom ( AVGO ): In the early session before the market opened, the stock price fell by more than 1%. Reports suggest that the company is seeking over $50 billion in financing to be used for OpenAI custom AI chip development as well as Oracle cloud infrastructure deployment.
Micron Technology ( MU ), TSMC ( TSM ): Despite TSMC announcing a 54.6% year-on-year increase in revenue for September, the stock prices of both companies still fell by more than 1% in the early hours before trading began. The market expects TSMC to release its full quarterly results next week and provide more detailed AI demand forecasts. Meanwhile, Samsung has released a record-breaking operating profit forecast of $80 billion.
It is also reported that Micron has agreed to pay $600 million to obtain the patent license for Netlists ( NLST ) and to settle the ongoing litigation.
Microsoft (MSFT) also attracts attention among retail investors. Previously, the stock had risen for four consecutive days, due to reasons including the pre-sale launch of Surface Laptop Ultra which incorporates NVIDIA technology, as well as Microsoft's announcement to integrate the local AI model into Windows.
Amazon ( AMZN ): Reports indicate that while continuously pushing forward with cost reduction efforts, the company has cut nearly 1,000 jobs, mainly in its Stores e-commerce business department.
Wolfspeed ( WOLF ): After receiving a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War, the stock soared by 18% before trading began. This funds will be used to expand the production capacity of radiation-resistant chips in the United States.
Applied Digital (APLD): This AI data center operator reported a significant increase in revenue for the first fiscal quarter and announced the signing of a new agreement to secure up to 1 gigawatt of power capacity in Finland.
IonQ ( IONQ ): After advancing to the final stage of the DARPA quantum benchmark testing program, the stock price gained momentum. The value of this project could reach up to $300 million by 2029, with the goal of verifying practical-scale quantum manufacturing capabilities.
Aerospace and Satellite Concept Stocks
SpaceX ( SPCX ) remains one of the most closely watched targets, as the US Federal Communications Commission ( FCC ) is preparing to review new spectrum regulations, which could accelerate the development of satellite direct connection to smartphone services. SpaceX and Amazon are both seen as potential beneficiaries. Additionally, it has been reported that Jim Cramer stated that SpaceX could become NVIDIA's largest customer.
Rocket Lab ( RKLB ) and AST SpaceMobile ( ASTS ) also deserve attention.
Popular Stocks
Tesla ( TSLA ): Expected to record a weekly increase. Dan Ives has initiated coverage of the stock, setting a target price of $500, stating that the upside potential brought about by software and physical AI exceeds 30%. UBS has also raised its target price to $391.
Kratos Defense ( KTOS ), AeroVironment ( AVAV ): After the Pentagon increased its focus on autonomous drone operations, Cathie Wood's subsidiary ARK Invest acquired a substantial stake in these two companies, which has attracted market attention.
Robinhood ( HOOD ), Webull ( BULL ): Due to concerns raised by a bipartisan group in the U.S. House of Representatives regarding their ties with China, the stock price of Webull plummeted on Wednesday. Robinhood and Public are actively competing for Webull customers, offering a 3% transfer reward.
Skydance Media ( SKYD ): Reports indicate that David Ellison and his family contributed approximately $17 billion to the $110 billion deal between Paramount and Warner Bros.
Lululemon ( LULU ): Despite the company making adjustments to its senior management team in order to revive revenue growth, the stock price remains under pressure and may experience a decline for the second consecutive week. The company has appointed Maggie Gauger as President and Chief Product Officer, and Joseph Godsey as Chief Operating Officer. At the same time, the company is still looking for new leaders for the brand, communications, and technology departments.
Pharmaceutical Pulse
ImmunityBio ( IBRX ): Despite management emphasizing the establishment of a new coverage association with Aetna-CVS, the stock remains under pressure and may record its worst single-week performance in over two months.
Sellas Life Sciences (SLS): Retail traders are analyzing the data from a new comparative trial on acute myeloid leukemia ( AML ) published in the journal Nature.
As of press time, other stocks that are also in focus on Stocktwits include Sea Ltd ( SE ), Baidu ( BIDU ), D- Wave Quantum ( QBTS ), and Cipher Digital ( CIFR ).
What else to pay attention to on Thursday?
In terms of economic data, traders will be watching the weekly initial jobless claims figures released at 8:30 a.m. Eastern Time, followed by wholesale trade data at 9 a.m. Later in the day, attention should also be paid to the speeches of Federal Reserve Board member Christopher Waller and the President of the St. Louis Federal Reserve Alberto Musalem.
The minutes of the Federal Reserve's September meeting show that most officials believe it is still possible to raise interest rates again before the end of the year.
In terms of financial reports, PepsiCo (PEP), Tilray Brands (TLRY), AngioDynamics (ANGO), and Byrna Technologies (BYRN) will release their earnings before the market opens; Nurix Therapeutics (NRIX) and Oil to Dri Corp, as well as of and America (ODC), will announce their earnings after today's market closes.
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Preeti Ayyathurai does not hold any stock positions mentioned in this article. Stocktwits The content of the news team is for reference only and does not constitute investment advice. For more information, please refer to their editorial policy. This article was originally published on StockTwits.
