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

Friday, June 26

Noteworthy macro moves today: Nikkei 225 Index (Japan) -4.6%. Nasdaq 100 Index (US) -1.4%. S&P 500 Index (US) -0.8%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) -2.2%. NVIDIA Corp (NVDA) -1.5%. Microsoft Corp (MSFT) +1.2%.

Global equity indices are trading lower today, with notable declines in the Nikkei 225 Index down by 4.6% and the Nasdaq 100 Index falling by 1.4%. This downward trend is reflected across major markets, including the S&P 500 Index which is down by 0.8%. The mixed performance in Asia saw the China A50 index higher while other indices like the Hang Seng and Singapore's STI faced losses.

Recent economic data released today showed that U.S. wholesale inventories increased by 0.3% month-over-month to $943.9 billion in May, surpassing market expectations of a 0.2% gain and marking the fourth consecutive monthly increase with a yearly rise of 4.3%. Additionally, initial jobless claims in France rose by 15.5K in May, raising concerns about labor market recovery amid ongoing economic challenges.

In Italy, consumer confidence fell to an index value of 92.4 for June from May's figure of 93.4, missing market expectations of a rise to 94.5, indicating deteriorating sentiment among consumers amidst economic pressures. Meanwhile, business confidence held steady at an index value of 88.4 for June, reflecting mixed feelings about future economic conditions.

Market sentiment has been influenced by Federal Reserve officials expressing varying views on inflation trends; some predict moderation while others remain cautious about persistent core inflation issues that could impact monetary policy moving forward.

iShares MSCI South Korea ETF (EWY) [-4.6%]
The South Korean stock market, represented by the KOSPI index, saw a significant decline of 5.8%, influenced by price increases from major tech companies like Apple and Microsoft due to rising memory costs. This drop reflects broader concerns about consumer demand in key technology sectors relevant to iShares MSCI South Korea ETF. Additionally, geopolitical tensions following an attack on a vessel near Oman have negatively impacted investor sentiment towards equities, including those tracked by the ETF. In pre-market trading, iShares MSCI South Korea ETF is declining, with notable contributions to its performance from holdings such as POSCO Holdings, which fell by 3.93%, and SK Telecom, down by 2.03%. The ETF's movement aligns with a broader market decline, as indicated by a 0.84% drop in the S&P 500 Index.

VanEck Semiconductor ETF (SMH) [-2.9%]
Pre-market trading has seen the VanEck Semiconductor ETF declining, driven by significant sell-offs in semiconductor and AI-related companies following price increases from major tech firms like Apple and Microsoft. This negative sentiment is compounded by rising memory costs, which are affecting investor confidence in the semiconductor sector. Notably, key holdings such as Micron Technology and Nvidia have contributed to this downward movement. The Nasdaq 100 Index's decline of 1.37% also reflects broader market trends that may be impacting SMH. Social media discussions indicate expectations for further declines in SMH, with some users anticipating a drop toward $605. Overall, the ETF is experiencing a notable decline as it approaches the regular trading session.

iShares China Large-Cap ETF (FXI) [-1.7%]
Asian stock markets are experiencing significant declines, with the Shanghai Composite index falling by 2.26% and Hong Kong's Hang Seng index dropping by 1.76%. This downturn is attributed to broader sell-offs in semiconductor and AI-related companies, following price increases from major tech firms like Microsoft and Apple, which raised concerns about consumer demand amid ongoing geopolitical tensions. As a result of these market conditions, iShares China Large-Cap ETF is trading lower during pre-market hours. The ETF's holdings are also under pressure, with notable declines from TCOM at -3.53%, TCEHY at -0.79%, and JD at -2.03%. Earlier in the session, FXI reached a low of -2.08% before partially recovering but remains significantly below its 20-day moving average.

MU | -5.6% | -71.2B
Micron Technology Inc | Information Technology
Micron Technology Inc's stock is sharply lower during pre-market hours, influenced by a warning from Morningstar about a potential revenue drop exceeding 50% by 2030 due to an anticipated supply glut in the memory chip market. This warning comes despite Micron's recent strong quarterly results. Broader market pressures are also impacting investor sentiment, particularly as competitors like Samsung and SK Hynix have contributed to a significant decline in South Korea's Kospi index, raising concerns about reduced consumer demand linked to higher memory component costs. Additionally, discussions on social media reflect a mixed sentiment, with some users noting Micron's strong performance while acknowledging the unfavorable broader market trends. Overall, these factors have overshadowed recent positive developments for Micron, leading to its current decline.

ON | -13.6% | -6.0B
ON Semiconductor Corp | Information Technology
ON Semiconductor Corp's stock is declining significantly in pre-market trading following the announcement of its $7 billion all-stock acquisition of Synaptics. This deal, intended to enhance ON's capabilities in the Physical AI market, has raised investor concerns about the complexity it adds to the company's business model. TD Cowen responded by downgrading ON from Buy to Hold and lowering its price target from $115 to $110. The acquisition is expected to close in mid-2027, pending regulatory and shareholder approvals. Earlier in the session, the stock had rebounded from a session low but remains well below its 20-day moving average and near the lower end of its one-month range.

SFTBY | -7.8% | -2.2B
SoftBank Group Corp | Communication Services
SoftBank Group Corp's shares are sharply lower in pre-market trading, pressured by several factors. A report from The New York Times suggested that OpenAI might delay its public debut until next year, potentially postponing a critical liquidity event for SoftBank's investors. This news coincides with a broader selloff in Asian technology stocks, which have declined significantly amid rising prices at major tech firms like Apple and Microsoft. Analysts note that SoftBank's substantial investment in OpenAI, exceeding $60 billion, further underscores its vulnerability to developments in the AI sector. Additionally, the Nikkei index has also experienced considerable losses, reflecting the negative sentiment in the market.

TCOM | -3.4% | -0.8B
Trip.com Group Ltd | Consumer Discretionary
Trip.com Group Ltd's stock is declining in pre-market trading following multiple analysts' reductions in price targets. Barclays analyst Jiong Shao lowered the target to $60 from $75, citing disappointing guidance and rising fuel costs affecting revenues. Goldman Sachs also cut its target to $71 from $83, while Citi reduced its target to $64 from $82, highlighting weak growth projections for the second quarter. Analysts are increasingly concerned about revenue growth slowing to approximately 3% to 8% for the upcoming quarter, which could pressure margins and overall performance. This collective bearish sentiment has contributed to today's price movement. Earlier in the session, shares pulled back from a session high but remain under pressure amid these developments.

DKNG | +2.5% | +0.3B
Draftkings Inc | Consumer Discretionary
DraftKings announced the launch of its proprietary prediction markets exchange, DKeX, integrated into the DraftKings: Sports & Casino app. This initiative aims to enhance the consumer experience and streamline operations, enabling faster innovation and greater control over content and technology. The platform has reported approximately $3.4 billion in annualized consumer volume, indicating robust growth. The introduction of DKeX is part of DraftKings' strategy to differentiate its offerings in the competitive sports engagement and betting landscape. In pre-market trading, shares are gaining, reflecting positive sentiment around this development.

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