U.S. stock index futures gained on Monday after slumping in the previous session as easing Middle East tensions buoyed risk sentiment, while investors looked ahead for an action-packed week with major tech earnings and a key inflation print.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 234 points, or 0.61%, S&P 500 e-minis were up 31 points, or 0.62%, and Nasdaq 100 e-minis were up 111.75 points, or 0.65%.
Pre-Market Movers
Nvidia (NVDA) - Nvidia was rising 1.5% in premarket trading. Shares of the artificial-intelligence chip maker declined 10% on Friday, the stock’s worst single-day percentage decline since it fell 18.5% on March 16, 2020, according to Dow Jones Market Data. Nvidia’s market cap dropped $212 billion on Friday, the most in a single day for the company. For all of last week, Nvidia fell nearly 14% as technology stocks, particularly those in the semiconductor sector, came under pressure.
Tesla (TSLA) - Tesla shares were down 3.9% after the electric-vehicle company over the weekend cut U.S. prices for its Model Y, S, and X vehicles. The cuts are a sign of weakening demand and generating more demand has been a struggle lately for the car maker, according to reporter Al Root of Barron’s. The company also cut prices in China and Europe. Tesla shares have closed lower for six-straight sessions. The drop Friday came after Tesla recalled nearly 4,000 Cybertruck vehicles.
Li Auto (LI) - U.S.-listed shares of Li Auto tumbled 7.6% after the Chinese EV maker also reduced prices in China.
Verizon (VZ) - Verizon Communications was up 1.3% after the telecommunications giant said it lost 158,000 users in its consumer wireless postpaid phone business in the first quarter, an improvement from the 263,000 users lost a year earlier. Verizon also posted first-quarter adjusted earnings of $1.15 a share, 5 cents below what it reported a yea earlier but better than analysts’ expectations of $1.12.
Salesforce (CRM), Informatica (INFA) - Talks between Salesforce and Informatica, the data-management software provider, have fizzled after the companies couldn’t agree on terms, The Wall Street Journal reported, citing people familiar with the matter. Earlier this month, the Journal reported the two companies were in discussions. The value of the deal was estimated at around $10 billion. Salesforce shares were up 3.2%, while Informatica declined 6.4%.
Crypto Stocks (Riot Platforms, Marathon Digital, Coinbase) - Crypto stocks traded higher following the so-called halving, an event that sharply cut the issuance of the world’s largest cryptocurrency. Riot Platforms rose 6%; Marathon Digital rose 4%; Coinbase rose 2%.
Trump Media & Technology Group (DJT) - Trump Media & Technology Group was edging down 4.8% early on Monday but majority owner Donald Trump is in line for a major stock award. Former President Donald Trump’s stake in the company was valued at around $2.9 billion at Friday’s closing price. He is still in line to receive an additional 36 million earnout shares in the company, currently worth around $1.3 billion on paper.
Market News
Tesla Cuts Prices in China, Germany and Around Globe After US Cuts
Tesla has cut prices in a number of its major markets, including China and Germany, following price cuts in the United States, as it grapples with falling sales and an intensifying price war for electric vehicles (EVs), especially against Chinese EVs.
Tesla cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed on Sunday.
In Germany, the price of the Model 3 rear-wheel-drive was trimmed to 40,990 euros ($43,670.75) from 42,990 euros, where the price had been since February.
There were also price cuts in many other countries in Europe, the Middle East and Africa, a Tesla spokesperson said.
U.S. prices of the Model Y, Model X and Model S vehicles were cut by $2,000 on Friday. On Saturday Tesla slashed the price of its Full Self-Driving driver assistant software to $8,000 from $12,000 in the United States.
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