US equity futures have reversed all overnight losses which were driven by the latest crash in South Korean stocks, which plunged 8% and closed at LOD, driven by a plunge in memory stocks. Still, the Nasdaq is still lower with tech stocks depressed on news that Sam Altman's OpenAI is seeking to offer a 5% stake to Trump in what is clearly an attempt to incentivize the government to backstop the company whose revenues are clearly below budget. As of 8:00am ET, S&P futures are up 0.1%, while Nasdaq futures drop 0.2% after semiconductors and high beta momentum led Wall Street lower in the previous session; the latest bout of tech volatility entered a second day, with chipmakers in South Korea bearing the brunt of the selling. SK Hynix and Samsung Electronics lost a combined $290 billion in value to drive a 7.9% slump in South Korea’s Kospi index. In Europe, the Stoxx 600 rose 0.6%, with technology among only two of the 20 index sectors to lose ground. Elsewhere, the dollar fell, as USDJPY suffered a sudden plunge on intervention concerns, and US 10-year yields +2bps at 4.50%, WTI -1.49% @ $67.55. All eyes on NFP later this AM (consensus at +113k, see our preview) and subsequent Fed pricing (market currently pricing in ~30% chance of a hike at July meeting) following yesterday’s Momentum drawdown (High Beta Momo finished -9.62%, second worst day YTD, top 5 worst days over last 5 years). So far the spillover from overnight price action has been limited, with KOSPI -7.89%, NKY -2.5% as yesterday’s META headlines continue to drive anxiety around overcapacity fears.
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