Welcome to the MarketReader Minute.

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

Wednesday, September 02

Noteworthy macro moves today: Nikkei 225 Index (Japan) -3.3%. Noteworthy US mega-cap moves today: Palantir Technologies Inc (PLTR) -1.8%. Exxonmobil Holdings Corp (XOM) -0.9%. Alphabet Inc (GOOG) +0.9%.

Global equity indices are trading mixed, with U.S. stocks showing some resilience while European and Asian markets decline sharply. The Nikkei 225 Index in Japan fell by 3.3%, reflecting heightened concerns over escalating tensions between the U.S. and Iran, which have driven oil prices higher and increased inflation fears.

In the U.S., the ADP Employment Change report released today showed an increase of only 38k private-sector jobs in August, significantly below market expectations of approximately 47k jobs. This disappointing figure has raised concerns about a broader slowdown in labor market conditions and may influence future monetary policy decisions by the Federal Reserve.

Additionally, rising global bond yields continue to exert pressure on financial markets as investors react to geopolitical tensions and inflation risks. The U.S. Treasury yield is approaching 5%, close to a three-year high, making bonds more attractive relative to equities and increasing borrowing costs across the economy.

Market participants are also awaiting the Bank of Canada's interest rate decision later today, with expectations that it will maintain its benchmark rate at 2.25%. This decision comes amid ongoing inflation concerns linked to rising energy prices due to conflicts involving Iran.

VanEck Gold Miners ETF (GDX) [+1.8%]
Pre-market trading for VanEck Gold Miners ETF has shown notable strength, advancing higher since Tuesday's close. The rise is attributed to a recent surge in crude oil prices, driven by escalating tensions between the U.S. and Iran, which have raised concerns about inflation and potential interest rate impacts. This environment typically enhances gold's appeal as a safe-haven asset, contributing to GDX's performance. Additionally, significant contributions from top holdings, particularly SCLXW and NEM, have supported the ETF's upward movement. Gold prices have also increased slightly, reflecting a strong historical correlation with GDX, which may further explain the ETF's gains during this session.

iShares MSCI Germany ETF (EWG) [-0.8%]
Global equity markets are under pressure, driven by macroeconomic concerns, particularly the re-escalation of violence in the Middle East and rising crude oil prices. The U.S. has initiated military strikes against Iran, contributing to a nearly 5% increase in crude oil prices, which has heightened inflation fears. This backdrop is likely influencing the iShares MSCI Germany ETF, which is modestly lower since Tuesday's close. The ETF's performance has also been affected by movements in the EUR/USD, contributing negatively to its return. Among its holdings, SAP has been a top contributor, showing a positive return, but overall, the ETF reflects a continuation of recent trends of lower closes over the past three sessions.

iShares U.S. Home Construction ETF (ITB) [+0.8%]
Concerns over inflationary pressures stemming from rising crude oil prices have influenced market conditions for the iShares U.S. Home Construction ETF. The increase in oil prices, driven by escalating tensions between the U.S. and Iran, may affect construction material costs and overall economic conditions relevant to home construction. Additionally, expectations for potential Federal Reserve rate hikes due to these inflation fears contribute to market volatility impacting sectors closely tied to housing. In pre-market trading, the ETF is modestly higher since Tuesday's close, supported by positive contributions from top holdings such as D.R. Horton, Lennar, and Lowe's. Despite recent challenges in the homebuilding sector, many stocks, including those in this ETF, are viewed as oversold, potentially providing a basis for recovery.

DELL | +8.9% | +26.7B
Dell Technologies Inc | Information Technology
Dell Technologies Inc. reported fiscal Q2 earnings that significantly exceeded expectations, with record revenue of $47 billion, a 58% year-over-year increase, and adjusted EPS of $7.04, surpassing estimates by a wide margin. The company highlighted robust demand for AI infrastructure, noting $60.9 billion in AI orders and a backlog of $95 billion. Analysts responded positively, raising their price targets, with Bank of America setting a target at $600 and Citi at $603. Following the earnings announcement, Dell's stock surged in after-hours trading, reflecting strong investor confidence in the company's growth potential in the AI market. This momentum has continued into pre-market hours, with shares sharply higher since Tuesday's close.

MDB | -13.0% | -4.0B
MongoDB Inc | Information Technology
Investor sentiment surrounding MongoDB Inc has turned negative following mixed analyst reactions to its recent earnings report. While Piper Sandler increased its price target to $470, RBC Capital and UBS lowered theirs to $465 and $410, respectively. This divergence has contributed to uncertainty among investors. Despite reporting strong quarterly results, including a revenue of $771.8 million—surpassing estimates—and an adjusted EPS of $1.90, the stock has faced profit-taking after a significant rally. Concerns regarding growth acceleration, particularly in its Atlas service, which grew 29% year-over-year, have led to a notable decline in share price. In pre-market trading, shares are trading lower, having dropped sharply from Tuesday's close, with some reports indicating a decline of over 12% in after-hours trading following the earnings announcement.

CRDO | -8.9% | -3.1B
Credo Technology Group Holding Ltd | Information Technology
Credo Technology Group Holding Ltd is facing downward pressure in pre-market trading following its recent earnings report. The company reported Q1 revenue of $479 million, exceeding estimates of $470.4 million, and an adjusted EPS of $1.20, above the consensus of $1.17. However, despite these positive results, shares declined by approximately 6% after the announcement. Analysts' reactions have been mixed; while Stifel reiterated a Buy rating with a price target of $350, Rosenblatt raised its target to $235 from $215 but maintained a Neutral rating. Concerns about growth deceleration, as sequential growth decreased from over 50% last quarter to around 11% this quarter, appear to be influencing the stock's current decline. Additionally, management raised revenue growth expectations for FY2027, reflecting confidence in future performance despite the current market reaction.

TEVA | +2.0% | +0.9B
Teva Pharmaceutical Industries Ltd | Health Care
Teva Pharmaceutical Industries Ltd reported positive topline results from its Phase 2a study of TEV ‘408, an investigational anti-interleukin-15 monoclonal antibody for adults with celiac disease. The study met its primary endpoint, showing statistically significant prevention of gluten-induced intestinal damage compared to placebo at week 8. Notably, TEV ‘408 was well-tolerated, with no safety signals observed, highlighting its potential as a pipeline-in-a-product opportunity across multiple diseases. Teva will hold an investor call today at 8:00 a.m. ET to discuss these findings further. In pre-market trading, shares are advancing, reflecting the positive news surrounding the trial results, despite a slight pullback earlier in the session.

ASTS | +3.3% | +0.7B
AST SpaceMobile Inc | Communication Services
Berenberg initiated coverage of AST SpaceMobile Inc with a Buy rating and a price target of $92, the highest among its peer group. Analyst Michael Filatov highlighted AST's unique ability to provide cellular broadband directly to unmodified smartphones, bolstered by partnerships with over 60 mobile network operators serving approximately 3 billion subscribers. The firm projects significant revenue growth for AST, estimating revenues of $173 million in 2026 and exceeding $8 billion by 2035. This positive sentiment contributed to a rise in AST SpaceMobile's stock during pre-market trading, where shares are advancing.

Thank you for spending a minute with us.

If you have 2 more minutes, watch this demo of the MarketReader Platform: