Market Snapshot

Semiconductor stocks rallied broadly in pre-market trading, with $Direxion Daily Semiconductor Bull 3x Shares(SOXL.US)$ up 5.52%, $SanDisk(SNDK.US)$ up 3.25%, $Micron Technology(MU.US)$ up 1.91%, $NVIDIA(NVDA.US)$ up 1.22%, $AMD(AMD.US)$ up 1.64%, and $Intel(INTC.US)$ up 2.01%. Consumer names came under pressure as $Lululemon(LULU.US)$ plunged over 20% pre-market on an earnings miss. $Tesla(TSLA.US)$ fell about 2.94%, weighed by Cybercab regulatory scrutiny and a sharp drop in European sales.

On Friday, the three major US equity futures were mixed pre-market: Dow futures slipped 0.06%, Nasdaq 100 futures gained 0.52%, and S&P 500 futures edged up 0.09%.

Stock News

1. Lululemon Q2 earnings miss, stock plunges over 20% pre-market: $Lululemon(LULU.US)$ reported a 9% decline in comparable sales, its worst performance on record, with North America comparable sales tumbling 12%. Revenue fell 4% year-over-year to USD 2.42 billion, missing market expectations. The company also lowered its full-year revenue and EPS guidance. Shares cratered over 20% pre-market to around USD 96.85, on track for the steepest single-day drop in years. New CEO Heidi O’Neill takes the helm amid pressure from founder Chip Wilson and broader industry headwinds, with the market skeptical of her ability to reverse the brand’s decline.

2. Semiconductor sector rallies broadly, TSMC AI expansion acts as catalyst: Taiwanese semiconductor companies are aggressively expanding capacity to meet surging AI demand, with equipment procurement estimates nearly doubling and plans to build roughly 20 new fabs. $TSMC(TSM.US)$ rose 1.03% pre-market, $NVIDIA(NVDA.US)$ added 1.22%, $AMD(AMD.US)$ gained 1.64%, $Micron Technology(MU.US)$ climbed 1.91%, $SanDisk(SNDK.US)$ jumped 3.25%, $Intel(INTC.US)$ advanced 2.01%, $Marvell Technology(MRVL.US)$ rose 1.96%, and $Broadcom(AVGO.US)$ edged up 0.91%. Major customers including NVIDIA and AMD continue to increase orders, and supply remains tight; analysts maintain a strong buy rating on the sector.

3. Tesla falls nearly 3% pre-market on Cybercab regulatory scrutiny and European sales slump: $Tesla(TSLA.US)$ dropped about 2.94% pre-market to around USD 365. The Cybercab faces regulatory scrutiny while European market sales have plunged sharply. Separately, Ross Gerber predicted a 100% probability of a Tesla-SpaceX merger, arguing the combined entity would become a “must-own” investment, though regulatory review and governance issues remain potential hurdles. $SpaceX(SPCX.US)$ edged down 0.12% pre-market.

4. Apple foldable iPhone mass production progressing slowly, daily output in the hundreds: $Apple(AAPL.US)$’s foldable iPhone mass production is running far below expectations, with daily output at just a few hundred units as of late August, well short of the 8–10 million unit annual shipment target. Stringent quality standards and manufacturing challenges have slowed the production ramp. The device is expected to carry an average selling price of USD 2,550; if capacity expansion falls short, initial supply tightness and extended consumer wait times will be unavoidable. Apple edged down 0.14% pre-market. Additionally, Apple has formally transitioned the CEO role from Tim Cook to John Ternus, with the market reacting positively to the handover.

5. Strategy falls over 1.8% pre-market, crypto-linked stocks under pressure: $Strategy(MSTR.US)$ declined 1.84% pre-market to around USD 142.16. The stock had surged over 17% on Wednesday, prompting short-term profit-taking pressure.

6. Gold bullish sentiment builds as Société Générale and Deutsche Bank turn bullish: Société Générale explicitly reinstated its long gold position, arguing that hawkish shocks have been priced in and downside risks are limited. Deutsche Bank confirmed that an institutional flow inflection point has arrived, with hedge funds, asset managers, and banks rotating into gold in succession. Top asset managers including Amundi, Robeco, and Fidelity have been adding to gold positions during the pullback. COMEX gold, however, edged down 0.57% pre-market to USD 4,513.80 per ounce.

Global Macro

1. US August nonfarm payrolls report looms large tonight: At 8:30 PM Beijing time, the US will release the August nonfarm payrolls data. Market expectations for the headline jobs number will influence the Fed’s September policy decision. The release will also include the unemployment rate, average hourly earnings MoM/YoY, labor force participation rate, and other key indicators. A substantial miss could reinforce bets on a Fed pause, while a strong print may reignite hawkish concerns.

2. Fed Governor Waller strikes a dovish tone, easing rate hike anxiety: Fed Governor Christopher Waller’s earlier dovish remarks helped spark a global equity rebound. Hong Kong’s Hang Seng Index opened higher and rallied Thursday, closing up 437 points at 25,650. Market sentiment has improved, but investors remain on hold awaiting tonight’s nonfarm payrolls data for clearer directional cues.

3. US-Canada trade talks break down, Trump warns of “very bad” consequences: President Trump warned Canadian Prime Minister Carney that the trade stalemate could lead to severe political and economic consequences, accusing Ottawa of undermining the deal for domestic interests. Canada denied the allegations but reiterated it remains open to a mutually beneficial agreement. The US had previously imposed a 50% tariff on Canadian imports, and escalating trade tensions may weigh on North American market sentiment.

Pre-market Turnover TOP10

1. $Micron Technology(MU.US)$ turnover USD 457 million, +1.91%
2. $Tesla(TSLA.US)$ turnover USD 358 million, -2.94%
3. $NVIDIA(NVDA.US)$ turnover USD 351 million, +1.22%
4. $SanDisk(SNDK.US)$ turnover USD 336 million, +3.25%
5. $Direxion Daily Semiconductor Bull 3x Shares(SOXL.US)$ turnover USD 223 million, +5.52%
6. $Broadcom(AVGO.US)$ turnover USD 143 million, +0.91%
7. $Invesco QQQ Trust(QQQ.US)$ turnover USD 126 million, +0.55%
8. $SpaceX(SPCX.US)$ turnover USD 115 million, -0.12%
9. $Lululemon(LULU.US)$ turnover USD 97.51 million, -20.46%
10. $Strategy(MSTR.US)$ turnover USD 90.47 million, -1.84%

Economic Calendar

(All times in Beijing time)

20:30 Change in Nonfarm Payrolls
20:30 Unemployment Rate
20:30 Average Hourly Earnings MoM
20:30 Average Hourly Earnings YoY
20:30 Change in Private Nonfarm Payrolls
20:30 Change in Manufacturing Nonfarm Payrolls
20:30 Change in Government Nonfarm Payrolls
20:30 Labor Force Participation Rate
20:30 U-6 Unemployment Rate
20:30 Average Weekly Hours, Private Sector