US Pre-Market: Brent, WTI Rise 3% as US-Iran Deadlock Persists, Three Major US Indices Undergo Phase Adjustments

TradingKey - At 8:00 AM ET, WTI crude oil futures rose more than 4% at one point during the Asian trading session, while Brent crude gained nearly 4% in tandem. Spot gold came under pressure and fell over 1%, breaking below the $4,700 mark, while silver rose more than 3% at one point. Upward pressure on oil prices was transmitted to the bond market, sending US Treasury yields higher again.

Global equity markets trended lower, with Nasdaq 100 futures falling more than 0.8%. In US pre-market trading, most high-profile tech stocks moved lower, with Micron Technology down over 2% and Intel down over 3%. UK gilts plunged at the open as calls for Prime Minister Starmer to resign continued to intensify.

On the news front: US President Trump told the media at the White House on Monday, May 11, that Iran's response to the US proposal was "stupid" and that the "ceasefire agreement is in jeopardy," abruptly casting a shadow over the prospects for a ceasefire.

Market Volatility

Japan's 10-year government bond yield hit a new 21st-century high. Japan's 10-year government bond yield rose 2-3 basis points to 2.54%, marking its highest level since 1997.

Major stocks Micron fell over 3% in pre-market trading, while Intel dropped more than 4%. Driven by risk-aversion, technology stocks were under broad pressure, while partial pullbacks in South Korean chipmakers SK Hynix and Samsung also fueled caution. Furthermore, reports suggest Tesla's AI6 chips may be shifted to Intel, allegedly with the endorsement of the Trump administration.

US-listed shares of JD.com rose over 3% in pre-market trading. First-quarter net revenue reached 315.69 billion yuan, a 4.9% year-over-year increase, exceeding the estimate of 311.43 billion yuan. Adjusted EBITDA for the first quarter was 8.02 billion yuan, down 41% year-over-year but above the estimated 4.46 billion yuan; adjusted EBITDA margin was 2.5%, compared with 4.6% in the prior-year period and an estimate of 1.38%.

US-listed shares of Tencent Music jumped over 10% in pre-market trading. The company reported first-quarter revenue of 7.9 billion yuan, a 7.3% increase year-over-year.

Market Headlines

British Prime Minister Keir Starmer has indicated he will remain in office. According to the Prime Minister's Office, British Prime Minister Keir Starmer clearly stated at a cabinet meeting today (May 12) that he will continue in his current role. Starmer said that while the Labour Party has a process for leadership challenges, that process has not yet been triggered.

U.S. Treasury Secretary Bessent stated that no demands regarding monetary policy were made. Earlier, U.S. Treasury Secretary Bessent visited Japan and stated that no requests concerning monetary policy were made to Prime Minister Takaichi. He noted that very close contact is being maintained with the Japanese Ministry of Finance.

Iran says it may choose to increase uranium enrichment levels to 90% if it is attacked again. On the 12th local time, Ebrahim Rezaei, spokesperson for the Iranian Parliament's National Security and Foreign Policy Committee, posted on social media that if Iran is attacked again, its response could be to raise uranium enrichment levels to 90%.

Key Data and Events Preview

8:30 AM ET, U.S. April CPI YoY Not Seasonally Adjusted (%)

May 13 local time, earnings conference calls for Chinese concept stocks Alibaba and Tencent

May 13 local time, U.S. President Trump's state visit to China

May 13 local time, Eurozone Q1 Seasonally Adjusted GDP