Nasdaq futures rise as SpaceX, Super Micro revive AI trade

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Nasdaq futures rise on AI trade

Highlights

Nasdaq futures rise as SpaceX jumps 9.4% on first public profit and merger talk with Tesla, while Super Micro climbs 12.7% after guiding above estimates.
Netflix falls over 6% following a weaker than expected Q4 profit forecast and recent 6% workforce layoffs, with market focus on upcoming Meta and Tesla earnings.
Brent crude futures hold above $110 per barrel, heightening inflation concerns and reinforcing expectations for a Federal Reserve rate hike next week.

AI-linked earnings boost market sentiment

As reported by Reuters, premarket trading is lifted by stronger appetite for AI-related stocks after SpaceX posts its first profit as a public company and Super Micro Computer forecasts quarterly revenue and profit margin above Wall Street estimates.

Elon Musk's rocket and space technology firm rises 9.4% after Musk says on Tuesday that a merger of SpaceX and Tesla would be "a good idea". Tesla shares are up 1.7%, while other space stocks including Rocket Lab, Planet Labs and Intuitive Machines gain between 2% and 4%.

Super Micro jumps 12.7% after the AI server maker signals resilient demand for AI infrastructure. Investors take comfort from the updates after worries over the profitability of the AI buildout trigger a selloff in AI-linked stocks last week, with data center operator CoreWeave, up 2.2% before the bell, at the center of that pressure.

Most chipmakers also trade higher, with Nvidia up 1.5%, Intel gaining 2.3% and Advanced Micro Devices adding 1.8%. Even so, semiconductors have a volatile month, and the Philadelphia SE Semiconductor index marks eight straight sessions of declines, its longest losing streak in 18 years, despite a brief reprieve on Monday.

Netflix falls as investors watch rates and oil

Netflix drops more than 6% after the streaming company issues a weaker-than-expected forecast for fourth-quarter profit, only days after laying off 6% of its workforce. Investors are also preparing for results from Meta and Tesla after the market closes.

Broader market attention remains on inflation and interest rates as Brent crude futures trade above $110 a barrel, near a five-month high. Data last week confirms that price pressures are seeping into the U.S. economy and broadening beyond energy products, reinforcing the case for another Federal Reserve rate hike when the central bank meets next week.

On Tuesday, the Dow outperforms both the S&P 500 and the Nasdaq, supported by robust gains in healthcare stocks.

Our earlier analysis of the Nasdaq 100’s recent rebound highlighted that the move came after a volatile selloff driven by AI supply-chain worries and higher financing costs weighing on technology stocks. We noted that the index was still trading below key moving averages, with mixed momentum and oversold signals, meaning sentiment remained fragile ahead of major tech earnings as traders watched key resistance levels.

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