Fed Minutes in Focus as AI Chip and Memory Stocks Diverge; Micron and Western Digital Fall Under Pressure

TradingKey - On Wednesday (August 19) Eastern Time, futures on the three major U.S. stock indexes fluctuated in pre-market trading as market sentiment stabilized slightly after a sell-off in AI and chip stocks in the previous session. Investors today are focusing on the Fed's July meeting minutes, earnings reports from U.S. retail giants, and the impact of the Middle East situation on oil prices and inflation expectations.

As of press time, Dow futures were up 0.12%, S&P 500 futures gained 0.09%, and Nasdaq 100 futures fell 0.17%.

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

In commodities, gold (XAUUSD) traded in a narrow range near $4,370; international oil prices remained elevated, with WTI (USOIL) crude trading near $85 and Brent crude rising above $91. Stalled U.S.-Iran negotiations and unresolved shipping risks in the Strait of Hormuz continued to provide support for oil prices.

In cryptocurrencies, Bitcoin (BTC) traded near $64,400. A slight retreat in U.S. Treasury yields eased pressure on risk assets, but inflation concerns brought by rising oil prices and a wait-and-see stance ahead of the Fed meeting minutes kept overall volatility in the crypto market limited.

Market Moves

Target (TGT) fell over 1% in pre-market trading. The company's second-quarter adjusted EPS was $4.11, exceeding market expectations; revenue grew 5.3% year-over-year to $26.54 billion, also beating expectations. Comparable sales rose 3.8%, higher than the market expectation of 2.4%, and the company also raised its full-year sales and EPS guidance. However, as performance was boosted by one-off factors such as tariff refunds and the stock has gained significantly year-to-date, the market experienced a "sell the news" reaction.

Lowe’s (LOW) fell over 3% in pre-market trading. The company's second-quarter adjusted EPS was $4.40, beating market expectations, but quarterly revenue was $25.96 billion, below market expectations. The company lowered its full-year 2026 revenue guidance to $92 billion and expects full-year comparable sales to be flat, below its previous guidance of "flat to up 2%," reflecting that DIY home improvement consumption remains under pressure in a high interest rate environment.

Moderna (MRNA) surged over 60% in pre-market trading. The company and Merck announced that their personalized mRNA cancer vaccine intismeran autogene in combination with Keytruda met the primary endpoint in a Phase III clinical trial for advanced melanoma, showing that it can prolong recurrence-free survival and reduce the risk of distant metastasis.

AI chip and memory stocks diverged in pre-market trading. Nvidia (NVDA) rose slightly in pre-market trading, AMD (AMD) fell about 0.7%, Micron Technology (MU) fell about 1%, SanDisk (SNDK) rose slightly, Western Digital (WDC) fell about 1.2%, and Seagate Technology (STX) fell about 0.7%. Sentiment in the chip sector stabilized somewhat after SK Hynix announced a massive buyback plan, but U.S. memory stocks have yet to fully recover from their sharp decline in the previous trading session.

Market News

The minutes of the Fed's July meeting will be released today. According to the Federal Reserve schedule, the minutes of the July 28-29 FOMC meeting will be published at 14:00 Eastern Time on August 19. The Fed previously kept the federal funds rate unchanged at 3.50% to 3.75%, but three committee members supported a rate hike; the market will focus on internal policy dissents and signals regarding the September rate path.

Major U.S. retailers are rolling out earnings in rapid succession. Target's second-quarter revenue, earnings per share, and comparable sales all beat expectations, and the company raised its full-year guidance; while Lowe's delivered better-than-expected profits, it lowered its full-year revenue and comparable sales outlook. Walmart (WMT) will report earnings before the market open on Thursday, serving as the next key event for gauging U.S. consumer resilience.

SK Hynix announced a stock buyback plan worth over $28 billion. The company plans to repurchase approximately 40 trillion Korean won in shares, setting a record scale for the South Korean market, and stated that it will return more than 50% of its cumulative free cash flow to shareholders between 2025 and 2027. This news served as a key catalyst for the global semiconductor sector today.

Tensions between the U.S. and Iran continue to unsettle energy markets. According to reports, there are currently no plans for a new round of talks between the U.S. and Iran, and risks regarding Strait of Hormuz shipping and regional security remain unresolved. Escalating Middle East tensions, combined with Red Sea shipping uncertainties, continue to impact crude oil supply risk premiums.

Important Data and Events Preview

At 10:30 a.m. Eastern Time on August 19, the U.S. EIA released the crude oil inventories report for the week ending August 14.

At 2:00 p.m. Eastern Time on August 19, the Federal Reserve released the minutes of its July FOMC meeting.