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Below are AI-generated insights on today's premarket moves, powered by MarketReader technology.

Tuesday, August 18

Noteworthy macro moves today: Nasdaq 100 Index (US) -1.2%. Nikkei 225 Index (Japan) -2.2%. Noteworthy US mega-cap moves today: Space Exploration Technologies Corp. Class A Common Stock (SPCX) -3.1%. NVIDIA Corp (NVDA) -2.0%. Tesla Inc (TSLA) -1.8%.

Global equity markets are trading lower, with notable declines in the U.S., where the Nasdaq 100 Index is down by 1.2%, and Japan's Nikkei 225 Index has fallen by 2.2%. This downward trend is largely attributed to rising geopolitical tensions, particularly concerning U.S.-Iran relations, which have heightened concerns about inflation and economic stability.

Recent news indicates that President Trump has ruled out extending a ceasefire agreement with Iran, leading to fears of escalating conflict in the Middle East. This situation has contributed to a surge in oil prices, with Brent crude climbing above $91 per barrel, further exacerbating inflation worries and impacting market sentiment negatively.

In economic data released today, U.S. import prices unexpectedly fell by 0.4% month-over-month for July, contrasting sharply with forecasts of a slight increase and marking the largest monthly decline since May 2025. Additionally, building permits rose by 5% to an annualized rate of 1.443 million units in July, exceeding expectations and indicating some resilience in the housing sector despite broader economic concerns.

The ZEW Economic Sentiment Index for Germany also showed significant improvement today, rising to 34.2 from previous levels and surpassing expectations of only 30.0. Similarly, the Euro Area's index increased to 31.4, reflecting growing optimism among analysts regarding future economic developments amidst ongoing geopolitical challenges.

iShares MSCI South Korea ETF (EWY) [-4.7%]
Despite a significant rise in the South Korean stock market, the iShares MSCI South Korea ETF is experiencing a notable decline in pre-market hours. Concerns over rising crude oil prices and geopolitical tensions, particularly following Iran's decision to rule out talks with the U.S., are contributing to negative sentiment. The ETF's holdings have also faced downward pressure, with notable declines from key contributors such as POSCO Holdings, SK Telecom, and Korea Electric Power Corporation. Additionally, broader market trends show the S&P 500 Index down, which historically correlates with movements in EWY. This backdrop of increased volatility and selling pressure has led to a significant drop since Monday's close, with early trading reflecting continued selling ahead of the market open.

VanEck Semiconductor ETF (SMH) [-2.9%]
Geopolitical tensions between the U.S. and Iran, particularly following President Trump's military threats in the Strait of Hormuz, have led to rising crude oil prices, negatively impacting global markets. This instability has contributed to a decline in investor sentiment across various sectors, including technology, where the VanEck Semiconductor ETF operates. As a result, SMH is trading lower during pre-market hours, reflecting a broader trend of weakness in the semiconductor sector. Significant declines among top holdings such as NVIDIA and Micron further underscore this negative momentum, with the ETF's performance impacted by the overall drop in the Nasdaq 100 Index.

Vanguard Information Technology ETF (VGT) [-1.6%]
Pre-market trading for Vanguard Information Technology ETF has seen a notable decline, influenced by escalating geopolitical tensions between the U.S. and Iran. President Trump's threats of military action in the Strait of Hormuz have contributed to rising crude oil prices, raising inflation concerns that may negatively impact technology sector stocks. The Nasdaq 100 Index is also experiencing a downturn, having reached a session low earlier today before a brief recovery, yet remains lower since Monday's close. Significant declines among key holdings have further pressured the ETF, with notable contributors to the drop including NVIDIA, AMD, and Micron Technology. Overall, investor confidence appears to be waning amid these developments, reflecting broader market sentiment.

BIDU | -7.1% | -19.3B
Baidu Inc | Communication Services
Baidu Inc is experiencing a significant decline in pre-market trading following its second-quarter earnings report, which fell short of analyst expectations. The company reported earnings per share of RMB7.22, missing the consensus estimate of RMB9.84, and revenues of RMB31.33 billion, below the expected RMB31.95 billion. Although Baidu noted a substantial increase in GPU Cloud revenue and a 50% rise in AI Cloud Infrastructure revenue, its advertising segment struggled with a 19% revenue decline to RMB13.1 billion. This mixed performance has intensified selling pressure on Baidu shares, contributing to a sharp decline since Monday's close.

COHR | -6.4% | -3.2B
Coherent Corp | Information Technology
Coherent Corp's stock is sharply lower in pre-market trading, following a notable rally earlier this week. The decline comes after the company reported advancements in its new 300mm high thermal conductivity silicon carbide substrates aimed at AI semiconductor applications. Despite a strong quarterly performance, which included a 34% revenue increase to $2.05 billion, the stock fell nearly 3% in overnight trading, indicating a pullback from previous gains. This movement aligns with broader weakness in the Electronic Components sub-sector, which is also experiencing significant declines. Additionally, while retail sentiment remained bullish after the recent earnings report, the stock's current trajectory reflects a retracement amid heightened volatility.

FN | -11.3% | -2.2B
Fabrinet | Information Technology
Fabrinet's stock is under pressure following a mixed earnings report and guidance released last night. The company reported a strong fourth quarter, with revenue increasing 45% year-over-year to $1.316 billion and adjusted EPS of $4.10, exceeding expectations. However, the first-quarter GAAP EPS guidance of $3.39 to $3.54 fell short of analyst estimates. Despite projecting robust demand in its data center and communications segments, the lower-than-expected EPS guidance has contributed to a sharp decline in pre-market trading. Shares are down significantly since Monday's close, reflecting market concerns despite the overall positive revenue outlook.

AS | +4.6% | +0.9B
Amer Sports Inc | Consumer Discretionary
Amer Sports reported strong second-quarter results, with revenue rising 32% year-over-year to $1.63 billion, exceeding estimates of $1.54 billion. Adjusted earnings per share increased to $0.18 from $0.03 in the prior year, and net income surged to $107.2 million, aided by tariff refunds and improved gross margins. The company also raised its full-year revenue growth guidance to approximately 24% and provided optimistic projections for the third quarter, setting EPS guidance at $0.31 to $0.33 and revenue guidance at $2.1 billion. These robust financial metrics have contributed to a positive market response, with shares of Amer Sports trading sharply higher in pre-market hours following the announcements.

VNET | -5.1% | -0.6B
VNET Group Inc | Information Technology
VNET Group Inc reported a net loss of RMB 135.6 million ($20 million) for the second quarter of 2026, a significant increase from a loss of RMB 11.9 million in the same period last year. This widening loss was primarily due to a RMB 47.1 million loss from changes in the fair value of financial instruments. Despite a 14.2% year-over-year increase in total net revenues to RMB 2.78 billion ($409.5 million), the company's gross profit declined by 7.8%, attributed to higher depreciation costs. Additionally, VNET announced a strategic cooperation agreement with CATL aimed at developing an integrated compute-energy ecosystem, which did not alleviate investor concerns over the financial losses. As a result, VNET shares are declining in pre-market trading, reflecting investor reaction to these developments.

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