Futures for the three major U.S. stock indices were all lower in Tuesday's pre-market session. As of writing, Dow Jones futures were down 0.48%, S&P 500 futures were down 0.15%, and Nasdaq futures were down 0.05%.
European markets showed gains, with Germany's DAX index up 0.69%, Britain's FTSE 100 up 0.12%, France's CAC 40 up 0.56%, and the Euro Stoxx 50 up 0.95%.
In commodities, WTI crude oil fell 1.02% to $91.22 per barrel, while Brent crude declined 0.95% to $94.08 per barrel.
Key Market Developments
SK Hynix, the dominant player in the HBM market, has forecast that the memory chip supply shortage could persist until 2030. The company plans to double its wafer production capacity for memory chips within five years to meet surging demand driven by the AI data center construction boom. SK Group Chairman Chey Tae-won stated at the 2026 Computex event that the company is grappling with a severe and prolonged shortage. While SK Hynix intends to significantly increase investment to expand HBM, DRAM, and NAND capacity, Chey did not disclose the specific amount of planned expenditure.
Reports indicate Iran has suspended dialogue with the U.S., with its negotiation team citing Israel's ongoing military actions in Lebanon and elsewhere. Iran is reportedly planning to completely block the Strait of Hormuz. U.S. President Trump stated he believes an agreement with Iran could be reached "within a week" to extend the ceasefire and reopen the strait.
HSBC has warned that commodity markets are in a state of "super squeeze." The bank's analysts, including Paul Bloxham, noted that if the Strait of Hormuz remains effectively closed, inventories will deplete further, potentially pushing some commodities past a "tipping point." They distinguished the current situation from historical "super cycles," emphasizing the core driver is supply shock rather than systemic demand explosion.
Bitcoin fell below the $70,000 level for the first time in nearly two months, trading around $69,200, pressured by concerns over U.S.-Iran tensions and significant selling activity. Other digital currencies, including Ethereum and Solana, also declined.
Experts at an OPEC+ analyst meeting reportedly warned that oil supply disruptions caused by the Strait of Hormuz closure could persist until year-end, even if the strait reopens swiftly. Restoring production to pre-conflict levels is expected to take months. OPEC's economic commission is meeting Tuesday, with ministers scheduled for an online meeting on June 7.
Notable Company News
Microsoft (MSFT.US)
Microsoft's Build 2026 developer conference commenced in San Francisco. The event is centered on four key pillars: agent AI, proprietary large language models, on-device computing deployment, and reshaping the developer experience, signaling a deep strategic push into the future of computing.
Marvell Technology (MRVL.US)
Shares of Marvell Technology surged nearly 30% in pre-market trading. The catalyst was Nvidia CEO Jensen Huang's comments at Computex, where he suggested Marvell has the potential to become the next trillion-dollar company, citing its crucial role in AI data center interconnect infrastructure. Marvell focuses on custom AI chips and optical interconnect technology for large AI data centers.
At Computex, Nvidia unveiled its Vera CPU for the next-generation Rubin platform, aiming to bolster its full-stack AI infrastructure. Intel countered by showcasing its Xeon 6 Plus processor built on the 18A process and detailing its strategy for agentic AI infrastructure, highlighting a broader competition for system control in the AI era.
Arm's CEO, Rene Haas, indicated that the company's chip revenue could reach its $150 billion target ahead of schedule, fueled by stronger-than-expected AI industry demand. Haas expressed high confidence in achieving the target by the end of the decade.
Alphabet, Google's parent company, announced plans to raise up to $80 billion through equity financing to support massive AI infrastructure investments. The financing includes a public offering and a $10 billion private investment from Berkshire Hathaway.
STMicroelectronics (STM.US)
STMicroelectronics shares hit a new high pre-market after the company nearly doubled its full-year revenue target for its data center business to $1 billion. The CEO also indicated that a decision on expanding its Crolles, France chip factory will likely be finalized before year-end.
Tesla (TSLA.US)
Tesla's new vehicle registrations in several European countries showed strong year-over-year growth in May, continuing a recovery trend. Registrations surged 655% in France and grew 29% in Norway. Significant growth was also seen in Denmark, Spain, Portugal, and Sweden, though registrations declined in Italy.
Upcoming Economic Data and Events
Key data includes U.S. JOLTs Job Openings for April at 10:00 PM Beijing Time and the weekly API Crude Oil Stock report at 4:30 AM Beijing Time the following day.
Earnings Preview
Palo Alto Networks is scheduled to report earnings Wednesday pre-market, followed by Macy's.
Comments