01 Stock Market
As of May 27, U.S. stock index futures performed as follows: Dow futures inched up about 0.02%, S&P 500 contracts added roughly 0.17%, and Nasdaq 100 futures advanced a firmer 0.62%, pointing to a cautiously positive tone ahead of the opening bell as traders digest a mix of upbeat chip-sector momentum and pockets of earnings-driven weakness.
Notable Stock Movers: Memory leader MU up 9.37% at $979.81 extended Tuesday’s landmark rally, while leveraged semiconductor ETF SOXL up 10.05% at $248.49 tracked the sector’s strength. AI bellwether NVDA up 0.16% at $215.21 edged higher after unveiling fresh supplier commitments. Marvell Up 6%. Electric-vehicle maker TSLA up 2.27% at $443.42 gained on renewed AI optimism. On the downside, Chinese e-commerce group PDD down 8.25% at $88.67 lagged after weaker-than-expected revenue. Cyber-security name ZS down 24.90% at $138.63 slumped following a cautious outlook, while inverse chip fund SOXS down 9.72% at $5.68 mirrored the sector’s advance.
The pre-bell landscape is dominated by a powerful rotation into semiconductors and space-related names, with upbeat demand forecasts for high-bandwidth memory and satellite connectivity spurring buying across AMD up 2.25%, WDC up 5.78%, and ASTS up 6.48%. Conversely, select Chinese consumer-internet listings such as BABA and JD are slipping in sympathy with PDD’s miss, illustrating investors’ selective stance toward discretionary growth stories.
02 Other Markets
• 10-year U.S. Treasury yield fell 0.18%, to 4.48%.
• U.S. Dollar Index was little changed, rising 0.00% to 99.15.
• WTI crude oil futures fell 3.47% to 90.63 USD/barrel; COMEX gold futures fell 1.60% to 4,462.50 USD/ounce.
03 Key News
1. Bath & Body Works beat expectations and announced a finance leadership change. The retailer reported stronger-than-forecast sales and adjusted profit for its latest quarter, supported by resilient demand for affordable self-care products. Management reiterated full-year guidance and named Tom Javitch interim chief financial officer as current CFO Eva Boratto departs to join a pharmaceutical distributor.
2. PDD Holdings missed revenue forecasts, sending shares lower in early trading. The discount e-commerce company’s first-quarter sales undershot consensus amid muted domestic consumption and intense price competition. Management highlighted higher fulfillment and R&D costs, while international arm Temu remains a growth bright spot but faces regulatory scrutiny.
3. Micron Technology surpassed a $1 trillion market value, fueling fresh price-target hikes. The memory giant’s continued rally reflects expectations of tight supply and robust AI-driven chip demand. A major brokerage tripled its target price, citing long-term supply agreements and prospects for elevated earnings through 2029.
4. Nvidia pledged to spend $150 billion annually with Taiwanese suppliers. Chief Executive Jensen Huang disclosed the investment at a ceremony opening a new campus in Taipei, underscoring confidence in the island’s semiconductor ecosystem despite geopolitical tensions. Shares of a key manufacturing partner gained on the commitment.
5. Zscaler issued a softer revenue outlook, prompting a sharp pre-market share decline. The cloud-security provider projected fourth-quarter sales below analyst estimates, citing competitive pressures and higher costs. Management nonetheless forecast solid earnings but warned of continued scrutiny on enterprise spending.
6. Quantinuum filed for a Nasdaq listing that could raise up to $1.05 billion. The Honeywell-backed quantum-computing specialist plans to offer 21 million shares, seeking a valuation near $13 billion. Proceeds are earmarked for scaling its vertically integrated quantum platform amid rising government and corporate demand.
7. Index provider FTSE Russell cleared SpaceX for fast entry into major benchmarks upon listing. Preliminary review shows the space-launch company meets market-capitalization thresholds for immediate inclusion in key U.S. and global indices. Such status would unlock automatic demand from passive funds once the anticipated IPO proceeds.
8. SK Hynix joined the ranks of trillion-dollar chipmakers after a dramatic share surge. The memory supplier’s valuation leap reflects dominance in high-bandwidth memory used for artificial-intelligence servers. Management expects supply constraints to persist for several years and is pursuing a U.S. listing to fund expansion.
9. Kuaishou posted higher revenue but a steep profit drop in its latest quarter. The short-video platform grew sales by about 3% thanks to online-marketing strength, yet net profit contracted 27% as live-streaming and margin pressures weighed. Management cited increased investment in AI tools and user acquisition.
10. Ark Invest trimmed its AMD stake and boosted exposure to Cerebras Systems. Funds managed by Cathie Wood sold additional AMD shares worth roughly $2.7 million while purchasing about $8.5 million of AI hardware newcomer Cerebras. The rotation highlights shifting conviction within the rapidly evolving semiconductor landscape.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: For informational purposes only; not investment advice.
