TLDR
- Semiconductor stocks Intel, Micron, and Marvell all rose in premarket trading, driven by AI chip demand.
- Dell Technologies gained ahead of its Thursday earnings report.
- Ferrari shares fell after unveiling its first electric vehicle, the Luce.
- Oil stocks including Exxon, Chevron, and ConocoPhillips dropped as a US-Iran deal looked closer.
- Rocket and satellite stocks climbed following SpaceX’s massive IPO filing.
Tech stocks kicked off Tuesday’s shortened trading week with strong gains. Semiconductor names led the charge, while oil stocks slid on Middle East peace hopes.
Semiconductor Stocks Lead the Rally
Micron Technology jumped 6% in premarket trading. Intel added 2.8% and Marvell Technologies also moved higher. Analysts point to continued AI-driven demand for advanced chips as the main driver.
Sandisk rose 3.3% and Dell Technologies gained 4.2% ahead of its earnings report on Thursday. Investors are watching Dell closely given its exposure to AI server demand.
The broader market reflected the mood. Dow futures rose 254 points, or 0.5%. S&P 500 futures gained 0.8% and Nasdaq 100 futures climbed 1.2%.
EchoStar, seen by Wall Street as a proxy play on the SpaceX IPO, rose 4.6%. Rocket Lab, AST SpaceMobile, and Viasat all moved higher too, extending a recent run tied to SpaceX’s IPO filing.
Chinese social streaming platform Joyy also rallied more than 11% after beating first-quarter revenue estimates.
Ferrari Falls on Electric Vehicle Unveil
Ferrari dropped more than 3% after revealing its first fully electric car, the Luce. The company has set a target for 20% of its lineup to be electric by 2030.
Investors appeared cautious about whether the luxury brand’s EV can attract buyers in a crowded market. Ferrari’s identity has long been tied to its combustion engines, making the shift a closely watched one.
Oil stocks slid as reports suggested the US and Iran were close to a deal to end the war in the Middle East. Exxon Mobil fell 1.4%, Chevron dropped 1.2%, and ConocoPhillips declined 1.8%.
Eli Lilly rose 1.9% after positive results from a phase 1b trial for a gene-editing treatment targeting high cholesterol.
Madison Square Garden Sports gained 3.1% after the New York Knicks swept the Cleveland Cavaliers. The win sends the Knicks to the NBA Finals for the first time since 1999.
The holiday-shortened week got off to a busy start with multiple sectors moving at once. Tech and space stocks gained while energy and luxury auto names pulled back.
The divergence reflects a market reacting to several separate stories at the same time. AI demand, geopolitics, and corporate earnings all played a role in Tuesday’s early moves.
Dell’s earnings on Thursday will be the next key event for tech investors. Results from the PC and server maker could set the tone for AI-related hardware stocks heading into June.
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