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U.S. equity futures were mixed in early Wednesday trading, while tech shares looked to rebound from yesterday’s late-session slump, as investors continue to defend the market’s solid autumn rally heading into the start of the third quarter earnings season.
Updated at 6:41 AM EDT
Intel review
Intel (INTC) shares moved lower in early trading following a move by China’s tech watchdogs called on the government to consider the tech group’s products at a threat to national security.
The Cyber Security Association said Intel chips should be subject to an intense review in order to “safeguard China’s national security and the legitimate rights and interests of Chinese consumers” in the latest tit-for-tat move in a broader trade war with the United States.
Intel shares were last marked 2% lower in premarket trading to indicate an opening bell price of $22.17 each.
CHINA CYBERSECURITY ASSOCIATION CALLS FOR REVIEW OF $INTC PRODUCTS
The China Cyberspace Security Association recommends a cybersecurity review of Intel’s products sold in China, citing frequent vulnerabilities, reliability issues, and hidden backdoors.
Intel’s CPUs have…
— iTradeOptions (@iTrade_Options) October 16, 2024
Stock Market Today
Stocks ended lower on Tuesday, with the Nasdaq falling more than 1% in the late hours of the session following a grim third quarter update from European chip equipment maker ASML (ASML) , which warned that the demand heading into 2025, outside of AI, would remain muted.
“It now appears the recovery is more gradual than previously expected,” said CEO Christophe Fouquet. “This is expected to continue in 2025, which is leading to customer cautiousness.”
A Bloomberg report suggesting the Biden Administration is seeking to cap overseas chip sales to certain countries deemed to be a national security risk added to the drawdown, with the Ban Eck Semiconductor ETF falling 5.4% by the close of trading.
Nvidia (NVDA) , which tumbled around 4.5% yesterday, is looking at a modest early gain, alongside Intel and Advanced Micro Devices (AMD) .
Chip equipment maker ASML spooked markets with a gloomy outlook for semiconductor demand beyond the AI investment surge.
iStock
That’s helping the Nasdaq in premarket trading, which is priced for a modest 20 point opening bell gain, as well as the S&P 500, which is looking at a 2 point advance.
The Dow Jones Industrial Average, meanwhile, is called around 24 points lower.
Away from equities, global oil prices steadied following yesterday’s slump, which took WTI futures to a two-week low, as investors remain concerned over the possibility of an Israeli strike on Iranian energy facilities as the war in the Gulf region continues to escalate.
Related: What’s next for S&P 500 returns as rally enters third year
Brent crude futures contacts for December delivery, the global benchmark, were last seen trading 11 cents higher at $74.37 per barrel while WTI contracts for November delivery, which are tightly-linked to U.S. gas prices, rose 18 cents to $70.76 per barrel.
In overseas markets, Britain’s FTSE 100 rose 0.57% in early London trading following data showing inflation fell below the 2% mark for the first time since 2021 last month, allowing for an easing of the pound against the dollar on foreign exchange markets.
More Wall Street Analysts:
Analysts update Meta stock price target with Q3 earnings in focusAnalysts update outlook for Nvidia’s Blackwell chips amid AI boomAnalyst reboots Reddit stock price target ahead of earnings
The region-wide Stoxx 600, meanwhile, was marked 0.35% lower amid one of the biggest slump in ASML shares in more than three decades and a sharp pullback in luxury goods market LVMH.
Overnight in Asia, Japan’s Nikkei 225 was marked 1.83% lower following last night’s sell-off on Wall Street, while the regional MSCI ex-Japan benchmark fell 0.62% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
