TLDR
- S&P 500 futures fell 0.94% in premarket trading after U.S. retaliatory strikes on Iran rattled markets
- Supermicro dropped around 9-11% after proposing $7B in equity financing to fund AI server orders
- Chewy rose 7.2% and Cracker Barrel gained 7% on strong earnings results
- Chip stocks including Micron and Qualcomm fell 3-4%, with South Korean chipmakers hit harder
- Bitcoin slipped 1.55% to $61,084 while gold futures dropped 2.30%
U.S. stock futures dropped in early Wednesday trading after the United States carried out retaliatory strikes on Iran, raising concerns about escalating tensions in the Middle East.
S&P 500 futures fell 0.94%, while Dow Jones futures were down 0.86%. The Cboe Volatility Index futures rose 1.34%, pointing to increased investor anxiety.
Supermicro Leads the Losers
Super Micro Computer was the biggest decliner, falling between 9% and 11% in early trading. The company proposed $7 billion in equity and equity-linked financing to fund purchases of components for its AI server orders.
Super Micro Computer, Inc., SMCI
The plan includes $5 billion in public offerings — $1.25 billion in common stock and $3.75 billion in depositary shares. It also includes up to a $2 billion at-the-market offering expected to begin no earlier than the third quarter of 2026.
Wolfspeed dropped 6.6% after filing a registration statement with the SEC for the potential resale of more than 24 million shares by selling stockholders. The company will receive no proceeds from those sales.
Summit Therapeutics fell around 6% after announcing a $500 million underwritten stock offering, with underwriters also given an option to buy an additional $75 million in shares.
Chip Stocks and Tech Feel the Pressure
Micron Technology fell 3.7% and Qualcomm dropped 3% as broader tech weakness continued. South Korean chipmakers were hit harder — SK Hynix dropped 7.5% and Samsung Electronics fell 6.1%.
Concerns about overvalued AI stocks have been weighing on the sector. SpaceX is set to begin trading Friday in what is expected to be the largest IPO ever, valued at $1.75 trillion. Some investors see it as a boost for the AI rally, while others view the valuation as a warning sign.
Asian markets closed lower overnight, with Japan’s Nikkei 225 down 1.89% and China’s Shanghai Composite falling 0.42%. European stocks were also lower, with the STOXX 600 down 0.70%.
Bright Spots in the Market
Not all stocks fell. Cracker Barrel jumped 7% after reporting a beat-and-raise quarter that showed improvement from recent periods. Comparable store retail sales dropped 1.8%, beating the consensus estimate of a 5.6% decline.
Chewy rose 7.2% in premarket trading. Cellectis gained 6.8% after its CAR-T therapy received FDA Regenerative Medicine Advanced Therapy designation for a severe form of leukemia.
In commodities, Brent crude rose 1.29% on Middle East concerns, while gold futures fell 2.30%. Bitcoin slipped to $61,084. The 10-Year Treasury yield climbed to 4.546%.
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