Market Overview
At 08:34 ET (12:34 GMT) U.S. equity index futures showed a mixed picture: S&P 500 futures added 0.1%, Dow futures rose 0.2%, while Nasdaq 100 futures slipped 0.6%. The divergence reflected renewed anxiety over artificial‑intelligence‑related trade, which weighed on technology‑heavy names.
Technology Stock Moves
Memory‑chip leaders SanDisk and Western Digital posted pre‑market declines of more than 10% and 15% respectively after their latest earnings failed to meet the high expectations set by the AI‑infrastructure spending boom. Advanced Micro Devices (AMD) also contributed to the tech‑sector weakness, with its shares down 7.04%.
SpaceX Lock‑up Expiry
SpaceX, Elon Musk’s aerospace venture, entered the spotlight as the post‑IPO lock‑up period for certain employee and investor holdings expired. The stock fell 13% on Wednesday and now trades well below its IPO price of $135, highlighting the market’s reaction to the increased free‑float.
Ripple Effects in Asia
The semiconductor sell‑off spilled into Asian markets. South Korean memory makers Samsung Electronics and SK Hynix tumbled, dragging the KOSPI lower, while Japan’s Nikkei 225 also fell as investors priced in the broader chip‑sector weakness.
Upcoming Earnings
The second‑quarter earnings calendar continues on Thursday with reports expected from ConocoPhillips, Airbnb, and Warner Bros Discovery, adding further focus for market participants.
Economic Calendar
U.S. non‑farm payroll data for July is slated for release on Friday, a key gauge that will influence expectations for Federal Reserve interest‑rate policy.
Geopolitical Developments
Beyond tech, traders are monitoring potential negotiations to reopen the Strait of Hormuz. U.S. officials indicated an imminent agreement, and President Donald Trump said talks with Iran were progressing, though details were not disclosed. Iranian officials confirmed a near‑final deal with Oman but warned that any agreement would not automatically guarantee security in the strait.
Commodity and Fixed‑Income Impact
The prospect of restored shipping through the strait has driven oil prices up 1.75% and helped ease inflation concerns, which in turn has pushed U.S. government‑bond yields lower over the past week.
Analyst Commentary
Deutsche Bank analysts noted that markets continue to lean toward a positive outcome for U.S.–Iran talks, but much of the optimism now appears priced in.