US Pre-Market: Three Major Index Futures Fall, PCE Data in Focus, Snowflake Surges 38% Pre-Market

TradingKey - U.S. stock index futures fell broadly on Thursday ET, led by Nasdaq futures. As of press time, Dow futures dropped 0.16%, Nasdaq 100 futures shed 0.38%, and S&P 500 futures lost 0.20%. Escalating tensions between the U.S. and Iran pushed oil prices higher, while markets await major data including April PCE inflation, the second estimate of Q1 GDP, and initial jobless claims.

Performance of the three major U.S. stock index futures, Source: Investing.com

Unusual Market Activity

Cloud data company Snowflake ( SNOW) surged approximately 38% in pre-market trading. The company reported strong financial results and announced a five-year, $6 billion cloud and AI infrastructure partnership with Amazon AWS, boosting market expectations for enterprise AI demand.

Dell Technologies ( DELL) rose over 4% in pre-market trading. Reports indicated that Dell secured a $9.7 billion software contract from the U.S. Department of Defense to manage Microsoft ( MSFT) software licenses, driving shares higher in pre-market trading.

Most Chinese concept stocks are under pressure. Li Auto ( LI) fell nearly 4% in pre-market trading, while Bilibili ( BILI) dropped about 3.6%, and Kingsoft Cloud ( KC) fell roughly 4.7%, as rising risk-aversion sentiment and falling Nasdaq futures weighed on high-beta Chinese growth stocks.

Spot gold ( XAUUSD) traded weakly, breaking below the $4,400 mark during the Asian session and hitting a two-month low, primarily affected by a stronger dollar, rising Treasury yields, and inflation concerns from rebounding oil prices. Crypto assets were under pressure across the board, with Bitcoin ( BTCUSD) briefly falling below $73,000 during the day, while Ethereum ( ETHUSD) dropped below $2,000.

Market Headlines

The U.S. has reportedly launched a new round of strikes against Iranian military targets near the Strait of Hormuz, while Kuwait stated that its air defense systems are responding to missile and drone threats. Market concerns over navigation risks in the Strait of Hormuz continue to drive up energy prices.

U.S. Treasury yields climbed as the dollar strengthened. The rebound in oil prices intensified inflation concerns, with the 10-year Treasury yield rising to around 4.52% and the 2-year yield reaching approximately 4.07%, putting valuation pressure on gold and growth stocks.

Key Data/Events Preview

At 8:30 AM ET on May 28, the U.S. will release the second estimate of Q1 GDP, April Personal Income and Outlays, the PCE Price Index, Core PCE, Durable Goods Orders, and weekly initial jobless claims.

At 8:55 AM ET on May 28, New York Fed President Williams will deliver a speech.

At 10:00 AM ET on May 28, the U.S. will release April New Home Sales data.

At 11:00 AM ET on May 28, the U.S. EIA will release crude oil inventory data.