Stock Market
As of Aug 18, U.S. stock index futures performed as follows: Dow Jones futures fell 0.10%, S&P 500 futures declined 0.44%, and Nasdaq 100 futures slid 1.15%, reflecting caution as higher Treasury yields and a broad semiconductor pullback tempered risk appetite ahead of the opening bell.
Notable Stock Movers: AAPL rose 0.62% at $307.49 on optimism around upcoming product refreshes, while chip bellwether NVDA fell 1.87% at $220.80 amid sector-wide weakness.
Memory name MU slipped 4.45% at $966.69 following pressure on storage stocks, and Chinese search leader BIDU fell 7.5% at $96.31 after disappointing quarterly results. Inverse semiconductor fund SOXS jumped 10.71% at $42.47 as traders hedged against further declines.
Trading patterns suggest rotation away from high-valuation chipmakers toward select megacap defensives; strength in AAPL contrasts with notable softness in broader tech. Earnings surprises and guidance shifts from retailers and Chinese ADRs, alongside macro headwinds from rising yields, are set to define initial market direction.
Other Markets
• 10-year U.S. Treasury yield rose 0.42%, to 4.74%.
• U.S. Dollar Index rose 0.0643% to 99.65.
• WTI crude oil futures rose 0.51% to 84.17 USD/barrel; COMEX gold futures fell 0.54% to 4 449.60 USD/ounce.
Key News
1. Amylyx Pharmaceuticals announced that its avexitide therapy met primary and secondary endpoints in a Phase 3 study, cutting severe post-bariatric hypoglycemia events by 55% versus placebo. Comprehensive success across multiple glucose-monitoring measures strengthens its late-stage pipeline and supports an imminent regulatory filing, lifting pre-market shares more than 40%.
2. Xos secured its first U.S. Air Force contract to deliver a deployable mobile charging prototype for electrified support equipment. The deal, obtained via the service’s Rapid Capabilities Division, will see the ruggedized Xos Hub assembled in Tennessee and positions the company for additional defense opportunities, sparking a near-doubling of its pre-market share price.
3. Home Depot topped earnings forecasts and reaffirmed full-year targets, buoyed by demand for small-scale renovation projects. Adjusted EPS reached $4.92 on revenue of $47.9 billion, both above consensus. Management maintained guidance for sales growth of 2.5%–4.5%, easing concerns over housing-market headwinds.
4. Baidu reported a 68% year-over-year drop in net income and a 4% revenue decline, triggering a sharp pre-market sell-off. Higher AI investment pressured margins despite a 50% jump in AI Cloud sales. Investors focused on weaker advertising trends and dimmed profitability outlook.
5. Baidu’s Apollo Go obtained new permits for fully driverless testing in London, Dubai, and Hong Kong, expanding its global robotaxi footprint. The authorizations underscore accelerating international ambitions and add momentum to the company’s autonomous-driving commercialization strategy.
6. Xiaomi’s quarterly profit fell more than 20% as smartphone shipments softened, yet management expressed confidence in forthcoming flagship phone and electric-vehicle launches. Revenue slid 6.1% to RMB 108.92 billion, while adjusted net income dropped 42.6%. The firm aims to offset elevated component costs with higher average selling prices.
7. Xiaomi executives signaled that recent memory-chip price spikes could moderate later this year, though costs are expected to stay above historic norms. Long-term supply agreements with five key vendors and a sharper product-mix strategy are intended to stabilize margins amid continued component inflation.
8. GigaDevice Semiconductor posted a more than tenfold surge in first-half net profit to RMB 6.86 billion, driven by robust NOR Flash demand. Management pointed to expanding domestic chip adoption and disciplined pricing as catalysts for the dramatic earnings leap.
9. Jane Street disclosed a roughly $990 million holding in U.S. Bitcoin exchange-traded funds, highlighting rising institutional interest despite recent trading losses. The market maker’s position, centered on a leading spot Bitcoin ETF, contrasts with its significant July trading downturn, suggesting diversified strategies amid crypto volatility.
10. A White House summit will convene senior regulators and crypto-industry leaders to discuss digital-asset policy as legislative progress stalls. Expected attendees include executives from major exchanges, market infrastructures, and federal agencies, signaling intensifying governmental focus on establishing clearer oversight for cryptocurrencies.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: For informational purposes only; not investment advice.
