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

Friday, August 28

Noteworthy macro moves today: USD/TRY +0.2%. IBEX 35 Index (Spain) -0.9%. Noteworthy US mega-cap moves today: Intel Corp (INTC) -2.4%. Johnson & Johnson (JNJ) +0.9%. NVIDIA Corp (NVDA) -0.8%.

Global equity indices are trading generally higher, with U.S. markets showing mixed results as the Dow rises while the Nasdaq 100 declines. This divergence comes ahead of Federal Reserve Chairman Kevin Warsh's anticipated speech at the Jackson Hole Symposium later today, which is expected to provide insights into future monetary policy amid ongoing inflation concerns.

In economic data released today, Canada's GDP growth rate for Q2 came in at 0.8%, driven by strong exports and household spending, while preliminary monthly GDP figures suggest stability in July following a previous expansion of 0.3% in June. Additionally, Eurozone services sentiment improved to a seven-month high of 5.8 in August, indicating growing confidence among service providers despite mixed signals from other sectors.

Germany's unemployment rate held steady at 6.4% in August, reflecting ongoing challenges within the labor market as the number of unemployed rose slightly but remained below the politically significant three million mark. Meanwhile, inflationary pressures are evident in France where the annual inflation rate unexpectedly accelerated to 2.4%, driven primarily by rising energy costs.

In Japan, core consumer prices increased by 1.8% year-on-year in August, signaling persistent inflationary pressures that complicate monetary policy decisions for authorities dealing with high debt levels relative to national income.

VanEck Semiconductor ETF (SMH) [-1.0%]
The VanEck Semiconductor ETF is trading lower during pre-market hours, reflecting a broader decline in the semiconductor sector. Notable contributors to this downward movement include Marvell Technology, which fell by 8.31%, and Nvidia, which declined by 0.6%. Additionally, Intel and Micron also posted losses, further impacting the ETF's performance. The Nasdaq 100 Index has moved down by 0.07%, indicating a correlation that may be influencing the VanEck Semiconductor ETF's decline. Overall, the ETF has shown unusual pre-market volatility, with fluctuations between -1.01% and -1.03% since Thursday's close.

Global X Copper Miners ETF (COPX) [+1.0%]
The Global X Copper Miners ETF is gaining in pre-market hours, supported by strong performances from key holdings. TECK contributed 0.08%, while FCX and BHP added 0.05% and 0.04%, respectively. The recent rise in crude oil prices, driven by geopolitical tensions, is impacting global energy markets, which may influence copper mining operations. Additionally, significant investments in critical minerals, such as Glencore Canada's Craig Mine expansion, could affect demand dynamics for copper. The United States Copper Index Fund also increased, reflecting a strong correlation with COPX, further supporting its upward movement since Thursday's close. Overall market sentiment remains cautious ahead of Federal Reserve Chairman Kevin Warsh's speech today regarding future monetary policy directions.

iShares China Large-Cap ETF (FXI) [+0.8%]
The iShares China Large-Cap ETF is advancing in pre-market hours following the People's Bank of China's announcement to enhance credit support for the property sector. This initiative aims to stabilize the real estate market by improving financing options for various projects, including completed housing sales. The measures are part of broader reforms designed to mitigate risks in the property sector and foster a healthier financial cycle. Positive sentiment towards large-cap Chinese stocks, represented by FXI, is expected as these developments unfold. Despite this, social media discussions indicate declines in several Chinese stock indices at the market open, reflecting broader market conditions that could influence FXI's performance.

MRVL | -7.5% | -14.7B
Marvell Technology Inc | Information Technology
Marvell Technology Inc's stock is sharply lower in pre-market trading following mixed earnings updates. The company reported a 37% year-over-year revenue increase for the second quarter, reaching $2.739 billion, and provided a revenue outlook for fiscal years 2027 and 2028 that exceeded expectations. However, it also guided for a decline in third-quarter gross margins to between 57.5% and 58.5%, down from 58.9% in Q2. Analysts expressed concerns over potential margin compression despite strong demand, contributing to negative sentiment. Additionally, while the company’s earnings beat estimates with an EPS of $0.94, uncertainties regarding the timing of revenue from deals with Google overshadowed the positive outlook, leading to cautious investor reactions reflected in the pre-market decline.

KZIA | -8.5% | -7.1B
Kazia Therapeutics Ltd | Health Care
Kazia Therapeutics Ltd has announced a public offering priced at $15.50 per American Depositary Share, aiming to raise approximately $40 million to fund the clinical development of its lead drug candidate, paxalisib. The offering includes warrants with exercise prices set at $17.825 and $19.375. Following this announcement, shares are declining in pre-market trading, reflecting negative market sentiment often associated with capital-raising efforts priced below market expectations. Earlier in the session, the stock fluctuated significantly, with a drop of nearly 18% at one point before partially recovering. This decline continues from after-market pressures observed on Thursday.

PYPL | -14.4% | -6.5B
PayPal Holdings Inc | Financials
PayPal Holdings Inc is under significant downward pressure following reports that Advent International and Stripe have abandoned their pursuit of a potential acquisition, which had valued the company at over $50 billion. This news, released just before the market opened, has reversed a period of speculation that previously boosted investor interest, contributing to a 40% rise in shares this quarter. Analysts note that with the deal off the table, focus will shift back to PayPal's fundamental challenges, including heightened competition and market risks in key regions like Germany. In pre-market trading, shares have fallen sharply, reflecting a substantial decline attributed to the withdrawal of the acquisition bid.

AFRM | +12.4% | +3.6B
Affirm Holdings Inc | Financials
Affirm Holdings Inc is experiencing a notable rise in its stock price during pre-market hours following several positive announcements. Piper Sandler raised its price target for Affirm to $115 from $103 while maintaining an Overweight rating. Bank of America also increased its target to $104 and reiterated a Buy rating. Additionally, RBC Capital and BMO Capital raised their targets to $96 and $101, respectively. These adjustments reflect strong market sentiment towards the company, bolstered by Affirm's robust fiscal Q4 results, which included an EPS of $4.62, significantly exceeding estimates. The combination of favorable analyst ratings and solid earnings reports has contributed to today's positive price movement, despite a slight pullback earlier in the session.

ESTC | +22.8% | +2.4B
Elastic NV | Information Technology
Multiple analysts have raised their price targets for Elastic NV following strong performance indicators. Truist Securities increased its target to $120 from $100 while maintaining a Buy rating. Guggenheim set a target of $120, up from $106, also with a Buy rating. Scotiabank's target rose to $84 from $58, and Canaccord reiterated a Buy rating with a target increase to $120 from $80. Piper Sandler raised its target to $130 from $85. These updates reflect heightened confidence in the company's growth trajectory. Additionally, Q1 earnings showed an adjusted EPS of $0.70, exceeding estimates, with sales of $478.113 million surpassing expectations. The company raised its fiscal year 2027 guidance for both adjusted EPS and revenue, contributing to shares trading sharply higher in pre-market hours.

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