U.S. Pre-Market: Nvidia Results Drive Memory Stocks Higher, Quantum Computing Stocks Surge, New Fed Chair Warsh to Take Office

TradingKey - Before the market open on Thursday, May 21 (ET), the three major U.S. stock index futures all retreated, while oil prices advanced. WTI rose to near $100 and Brent reached $107, ending a two-day slide.

Asian markets were generally optimistic, with the Nikkei 225 closing up 3.1% and the KOSPI surging 8.4%, its largest gain since April 1. Among its components, Samsung Electronics and SK Hynix jumped 8.5% and 11.17%, respectively.

Market Movements

U.S. quantum computing stocks surged in pre-market trading, with D-Wave (QBTS) rising more than 17%, while Quantum Computing (QUBT) gained over 13%. According to The Wall Street Journal, the U.S. Department of Commerce stated that the Trump administration will provide $2 billion in grants to nine quantum computing companies, with terms requiring the U.S. government to receive equity stakes.

Walmart (WMT) reported earnings pre-market and fell more than 2% as of press time. The report showed that Walmart's revenue for the quarter exceeded expectations and earnings per share were in line with estimates, but the company maintained its full-year guidance as geopolitical conflicts raised supply chain costs.

Tesla (TSLA) rose more than 1% in pre-market trading. On the news front, Tesla announced on social media platform X that supervised FSD is now available in China.

Nvidia's latest earnings report demonstrated the strength of its data center business, driving storage stocks higher. Micron Technology (MU) , Marvell (MRVL) gained nearly 1% in pre-market trading, while Seagate Technology (STX) rose 0.46%.

Market Headlines

SpaceX has released its prospectus, designating "SPCX" as its ticker symbol. The company plans to raise $70 billion to $80 billion through the IPO, targeting a valuation between $1.75 trillion and $2 trillion. SpaceX is expected to list on the Nasdaq on June 12. According to the filing, the company reported $18.7 billion in total revenue for 2025 with a net loss of $4.9 billion; Elon Musk retains 85% of the voting power.

OpenAI may file for an IPO as early as this week, aiming for a September debut with a target valuation exceeding $1 trillion. Media reports indicate that OpenAI is fast-tracking its public offering to secure the largest IPO in the AI sector, aiming to list ahead of its rival, Anthropic.

Samsung Electronics management and labor have reached a preliminary agreement, temporarily easing the threat of a strike; shares of Samsung closed up 8.5%. Late on the night of May 20, Samsung Electronics issued a statement saying that both parties had reached a tentative consensus on wages and collective bargaining agreements, suspending the strike action originally scheduled for May 21 to June 7. Under the preliminary deal, the company will allocate 10.5% of operating performance as a source for special performance bonuses, with no upper limit. Of this funding, 40% will be allocated to the Device Solutions division, which handles the semiconductor business, while the remaining 60% will be distributed among other sub-divisions. However, the move immediately drew strong protests from shareholder groups, who argued that the agreement is legally invalid as it was made without a resolution from the general meeting of shareholders.

Key Economic Data and Events Preview

On Friday, May 22, Japan will release its national CPI and national core CPI year-on-year rates for April, and the U.S. will release the final reading of the University of Michigan consumer sentiment index for May.

On May 22, Richmond Fed President Barkin, a 2027 FOMC voting member, and Fed Governor Waller will deliver speeches. Kevin Warsh will be sworn in as the new Chairman of the Federal Reserve Board.