December Nasdaq 100 E-Mini futures (NQZ26) are up +0.81% this morning as chipmakers staged a partial rebound from yesterday’s selloff following a new report on OpenAI’s estimated revenue.
Chip and AI infrastructure stocks advanced in pre-market trading, rebounding from yesterday’s slump after Bloomberg reported that OpenAI expects to reach at least $70 billion in annualized revenue by year-end. The report helped ease worries that OpenAI’s revenue was coming in below earlier estimates. Marvell Technology (MRVL), Micron Technology (MU), and Intel (INTC) each gained more than +1%.
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Also aiding sentiment, the price of WTI crude fell nearly -1% on Friday after U.S. President Donald Trump said the U.S. would not launch strikes against Iran before November’s midterm elections. The president also pointed to “productive discussions” with Tehran.
Investors are now awaiting the University of Michigan’s preliminary consumer sentiment index and remarks from a Federal Reserve official.
In yesterday’s trading session, Wall Street’s major indices ended mostly lower, dragged down by a selloff in chipmakers. Chip and AI infrastructure stocks sank after the Financial Times reported that OpenAI’s annualized revenue was $20 billion below previously signaled levels, with Arm Holdings (ARM) slumping over -6% and Intel (INTC) dropping more than -5%. Also, most members of the Magnificent Seven slid, with Nvidia (NVDA) falling nearly -3% to lead losers in the Dow and Amazon.com (AMZN) slipping more than -2%. In addition, Universal Display (OLED) declined over -5% after Citi downgraded the stock to Sell from Neutral with a price target of $71. On the bullish side, Chipotle Mexican Grill (CMG) climbed over +6% and was among the top percentage gainers in the S&P 500 after the Financial Times reported that Starbucks was exploring a takeover of the company.
The Labor Department said on Thursday that the number of Americans filing initial jobless claims in the past week unexpectedly fell by 2K to a 2-1/2-month low of 197K, suggesting that employers largely kept their workforce levels unchanged. Economists had expected the figure to rise to 200K. Separately, U.S. August wholesale inventories were revised lower to +0.5% m/m from the preliminary reading of +0.7% m/m.
Investors also digested hawkish comments from Fed officials. Fed Governor Christopher Waller said on Thursday that additional interest-rate hikes would likely be necessary to curb inflation, though policymakers have some flexibility on timing and do not need to raise rates at consecutive meetings. St. Louis Fed President Alberto Musalem echoed Waller’s comments, saying the Fed would need to tighten policy further to return inflation to its 2% target in a timely manner. “If a timely manner is something like 18 months, that suggests rates ought to be going up further in an appropriate period of time, in the next six to nine months,” Musalem said.
U.S. rate futures are currently pricing in an 80.6% probability of no rate change and a 19.4% probability of a 25-basis-point rate hike at the October FOMC meeting.
Today, investors will focus on the University of Michigan’s U.S. consumer sentiment index, which is set to be released in a couple of hours. Economists forecast that the preliminary October figure will come in at 47.5, compared with 48.1 in September.
Market participants will also scrutinize remarks from Boston Fed President Susan Collins today.
On the earnings front, carrier Delta Air Lines (DAL) is scheduled to report its Q3 results today.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 5.26%, up +0.38%.
The Euro Stoxx 50 Index is up +0.88% this morning as lower oil prices and bond yields boosted sentiment. Bank, software, and energy-intensive stocks were among the biggest gainers on Friday. At the same time, telecom stocks slumped after SpaceX’s acquisition of low-band spectrum fueled concerns about intensifying competition from satellite-based mobile services. Despite Friday’s gains, the benchmark index was on track for a weekly loss. Data from ISTAT released on Friday showed that Italy’s monthly industrial production unexpectedly fell in August, dimming the outlook for the Eurozone’s third-largest economy. Meanwhile, Eurozone government bond yields fell on Friday as lower oil prices eased inflation concerns and the market caught up with yesterday’s decline in Treasury yields. Elsewhere, BofA raised its rating on French equities to Overweight from Market Weight on Friday, citing attractive valuations following their recent underperformance. In corporate news, Soitec (SOI.FP) climbed over +6% after BofA upgraded the stock to Buy from Neutral.
Italy’s Industrial Production data was released today.
The Italian August Industrial Production unexpectedly fell -1.3% m/m, weaker than expectations of no change m/m.
Asian stock markets today closed mixed. China’s Shanghai Composite Index ($CHSC) closed up +0.05%, and Japan’s Nikkei 225 Stock Index ($NKY) closed down -0.02%.
China’s Shanghai Composite Index reversed earlier losses and closed slightly higher today amid speculation that authorities had intervened to stem the decline. The Shanghai Composite Index erased a 1.4% drop, while the tech-heavy Star 50 Index recovered from a loss of nearly 5%. Some traders cited buying by the so-called National Team as the catalyst behind the abrupt reversal. Trading activity in eight exchange-traded funds associated with the National Team jumped to nearly 30 billion yuan ($4.5 billion) on Friday, the highest level in almost two months. Other traders pointed to screenshots circulating online that purported to show regulatory guidance aimed at limiting selling. Still, the benchmark index posted losses for the holiday-shortened week. Elsewhere, China’s Finance Ministry released a report on fiscal policy for the first half of 2026 on Friday, pledging to bolster domestic demand and advance fiscal reforms. In corporate news, Xiaomi jumped over +9% in Hong Kong after the EV maker reported strong orders for its new SkyNomad series. Investors now turn their attention to a series of key Chinese economic data releases due next week and the Communist Party’s fifth plenum, scheduled for Oct. 26-29.
Japan’s Nikkei 225 Stock Index reversed earlier losses and closed just below the flatline today. The Nikkei opened sharply lower as tech stocks tumbled, tracking overnight losses among their U.S. peers following a Financial Times report that OpenAI’s annualized revenue was $20 billion lower than previously signaled. However, tech stocks later pared their losses, with some turning higher after Bloomberg reported that OpenAI expects to reach at least $70 billion in annualized revenue by year-end, helping the tech-heavy index recoup its early losses. Gains in software and food stocks also supported the benchmark. The Nikkei notched a weekly gain. Meanwhile, Japanese government bond yields fell sharply on Friday, tracking yesterday’s rally in U.S. Treasuries. On the economic front, data released on Friday showed that Japan’s annual household spending fell for a ninth straight month in August despite continued wage growth, suggesting that consumers remain cautious as persistent inflation erodes purchasing power. Elsewhere, Japanese Prime Minister Sanae Takaichi said on Friday that the government will continue to closely monitor exchange-rate and price developments and respond appropriately. In corporate news, Rorze jumped over +15% after the semiconductor equipment maker raised its full-year operating profit forecast. Also, Nidec Corp. slid over -5% after UBS downgraded the stock to Neutral from Buy. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.86% at 30.14.
The Japanese August Household Spending rose +0.1% m/m and fell -3.1% y/y, compared with expectations of +0.5% m/m and -3.5% y/y.
Pre-Market U.S. Stock Movers
Chip and AI infrastructure stocks advanced in pre-market trading, rebounding from yesterday’s slump after fresh details emerged about OpenAI’s estimated revenue. Marvell Technology (MRVL), Micron Technology (MU), and Intel (INTC) were each up over +1%.
Apple (AAPL) fell nearly -2% in pre-market trading after Nikkei Asia reported that the company told some suppliers to reduce production of components for its iPhone 18 Pro and iPhone 18 Pro Max amid weak demand.
Humana (HUM) jumped over +14% in pre-market trading after the federal government released 2027 Medicare Advantage plan ratings data, which showed that the insurer earned a four-star rating.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - October 9th
Delta Air Lines (DAL), New Horizon Aircraft (HOVR).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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