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

Tuesday, May 12

Noteworthy macro moves today: GBP/USD -0.5%. US Dollar Index +0.3%. DAX 30 Index (Germany) -1.1%. Noteworthy US mega-cap moves today: Tesla Inc (TSLA) -1.6%. Broadcom Inc (AVGO) -1.4%. Exxon Mobil Corp (XOM) +1.2%.

Global equity markets are trading lower following the release of U.S. inflation data that exceeded expectations, indicating persistent inflationary pressures driven by rising energy prices amid ongoing geopolitical tensions related to the Iran conflict. The Consumer Price Index (CPI) rose to 3.8% year-over-year in April, up from March's figure of 3.3%, which has raised concerns about potential implications for future monetary policy.

In addition to inflation concerns, President Trump's comments regarding the fragile ceasefire with Iran have contributed to market volatility, as he described the situation as being on "massive life support." This uncertainty is weighing heavily on investor sentiment and has led to a spike in oil prices, further complicating the economic outlook.

European equity indices are also experiencing declines as hopes for a U.S.-Iran peace deal fade and inflation data from Germany shows an increase to 2.9%, driven largely by higher energy costs linked to the ongoing conflict in the Middle East. This combination of factors is leading to cautious trading across global markets today, with investors closely monitoring developments in both geopolitical and economic landscapes.

iShares MSCI South Korea ETF (EWY) [-6.0%]
The iShares MSCI South Korea ETF is experiencing a significant decline, driven by adverse developments in the South Korean semiconductor sector. A notable drop in DRAM prices, which fell sharply overnight, has been linked to substantial stock price reductions at Samsung Electronics and SK Hynix. Speculation regarding potential taxation on AI-related profits has further complicated the landscape, as remarks from South Korean presidential policy chief Kim Yong-beom initially created confusion about government tax plans. This uncertainty contributed to a broader market downturn, with the KOSPI index declining significantly. Additionally, ongoing labor negotiations at Samsung, including a potential strike, exacerbate the uncertainty surrounding the semiconductor sector. Given that both Samsung and SK Hynix represent considerable portions of the ETF's holdings, these factors have amplified the ETF's negative performance today.

United States Oil Fund LP (USO) [+3.0%]
Military strikes conducted by the United Arab Emirates on Iran, including an attack on a refinery, have escalated tensions in the region. This development has led to a significant increase in oil prices, with West Texas Intermediate crude responding positively. Reports suggest that ongoing conflict could push oil prices to $200 per barrel. Concurrently, U.S. crude futures have risen sharply due to diminishing expectations for a peace deal between the U.S. and Iran, alongside supply disruptions from incidents such as a refinery explosion in Mexico. In this context, the United States Oil Fund LP is trading higher in pre-market hours, reflecting strong upward momentum as it approaches the upper end of its recent trading range.

ZBRA |+13.7% | +1.7B
Zebra Technologies Corp | Electronic Equipment & Instruments
Zebra Technologies Corp reported strong first-quarter results, with adjusted earnings per share (EPS) of $4.75, exceeding the consensus estimate of $4.25, and revenues of $1.495 billion, surpassing expectations of $1.48 billion. The company raised its full-year 2026 adjusted EPS guidance to a range of $18.30 to $18.70 from the previous $17.70 to $18.30, driven by robust demand for automation solutions in manufacturing. Looking ahead, Zebra anticipates second-quarter adjusted EPS between $4.20 and $4.50, projecting sales growth of 14% to 17% compared to the prior year, also above analysts' expectations of 13.7%. This positive outlook has coincided with a significant increase in the stock price during pre-market hours, reflecting a notable reversal from recent trading patterns.

ASTS | -10.5% | -2.0B
AST SpaceMobile Inc | Alternative Carriers
AST SpaceMobile Inc experienced a significant decline in stock price following the release of its Q1 earnings report, which revealed a net loss of $0.66 per share, far exceeding the expected loss of $0.23. Revenue for the quarter was reported at $14.7 million, considerably below analyst estimates of approximately $37.6 million. This substantial earnings miss has raised concerns regarding the company's ambitious satellite deployment goals, with analysts now questioning the feasibility of launching 45 satellites by the end of 2026. The company's full-year revenue guidance remains between $150 million and $200 million, which is below the consensus estimate of $181 million, further contributing to investor apprehension. Following these results, shares dropped significantly in after-hours trading, reflecting investor concerns over the revenue miss and operational timelines.

SE |+10.4% |+5.6B
Sea Ltd | Interactive Home Entertainment
Sea Ltd reported strong first-quarter results, with revenue reaching $7.1 billion, exceeding analyst expectations of $6.45 billion and marking a 46.6% year-over-year increase. The e-commerce platform Shopee played a crucial role in this performance, achieving a gross merchandise value of $37.3 billion, up 30.2% from the previous year. Despite an earnings per share (EPS) of $0.67 falling short of the consensus estimate of $0.76, net income rose to $438.2 million, a 6.7% increase year-on-year. The digital financial services segment also saw significant growth, with revenue surging 57.8% to $1.2 billion. Following the earnings announcement, Sea Ltd's stock is trading notably higher, reflecting a shift in momentum after three consecutive sessions of declines.

VOD | -7.2% |-29.3B
Vodafone Group PLC | Wireless Telecommunication Services
Vodafone Group PLC's shares have dropped significantly following the release of its FY26 adjusted earnings report. The company reported an adjusted EBITDA after leases of €11.4 billion, aligning with the upper end of its guidance. However, the margin decreased to 28.1%, down from 29.2% in the previous period, and there was a 3.3% decline in organic adjusted EBITDA in Germany. This combination of disappointing margin performance and regional earnings weakness has contributed to today's negative price movement. Currently, the stock is trading lower, marking a notable decline during pre-market hours and remaining below its 20-day moving average.

TME | +7.3% |+2.5B
Tencent Music Entertainment Group | Movies & Entertainment
Tencent Music Entertainment Group reported its first quarter 2026 financial results, revealing total revenues of RMB 7.90 billion, a year-over-year increase of 7.3%. This growth was primarily driven by a 12.2% rise in revenues from music-related services, totaling RMB 6.51 billion. However, net income decreased significantly to RMB 2.09 billion from RMB 4.29 billion in the prior year, with diluted earnings per American Depositary Share at RMB 1.34 compared to RMB 2.77 a year earlier. The company highlighted its holistic approach to the music ecosystem and ongoing investments in premium intellectual property to enhance user engagement. In pre-market trading, shares experienced notable movements, attributed to conditional approval from China's market regulator for Tencent's acquisition of shares in Ximalaya, alongside positive earnings data that exceeded expectations.

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