US Pre-Market: CPI Arrives. Three Major Futures Fall, AI Chip Stocks Decline, Super Micro Computer Plunges 12%

TradingKey - U.S. stock index futures fell broadly in pre-market trading on Wednesday Eastern Time as the tech sell-off continued. Amid reignited Middle East tensions and the looming May CPI release, market risk appetite has cooled significantly. As of press time, Dow futures fell 0.92%, S&P 500 futures dropped 1.06%, and Nasdaq 100 futures slid 1.62%.

U.S. stock index futures performance, Source: Investing

In commodities, gold ( XAUUSD) weakened significantly during the day, with gold prices falling 2.21% to around $4,165.95. Crude oil prices rebounded, with WTI crude oil ( USOIL) spot rising 1.23% to $89.80, while Brent crude rose 0.64% to $92.87. The latest round of mutual strikes between the U.S. and Iran has reignited risks in the Strait of Hormuz, and rising energy prices continue to be a core variable in inflation trades.

Crypto assets also weakened, with Bitcoin ( BTCUSD) falling 1.22% to around $60,980, bringing its cumulative monthly decline to over 17%; Ethereum ( ETHUSD) saw an even larger decline, with its cumulative drop this month exceeding 19%. Crypto stocks fell in tandem during pre-market trading, with Coinbase ( COIN ), MicroStrategy ( MSTR ), and Robinhood ( HOOD) all falling by more than 2%.

Unusual Market Movement

AI chip stocks broadly fell in pre-market trading. Micron ( MU ), AMD, Intel ( INTC ), Nvidia ( NVDA ), Broadcom ( AVGO) fell collectively, indicating that the correction in technology stocks since last week is not yet over. Market concerns regarding AI valuations, returns on capital expenditures, and the timing of profit realization for chip stocks continue to brew.

Super Micro Computer ( SMCI) fell more than 12% in pre-market trading. The company announced plans to raise approximately $7 billion through equity and equity-linked financing to purchase components to meet AI server order demand. Despite robust order demand, investors are concerned about the dilution pressure from the new financing.

Oracle ( ORCL) fell more than 3% in pre-market trading. The company will release its quarterly earnings report after the U.S. market close, with the market expecting EPS of $1.95 and revenue of $19.1 billion. Given Oracle's deep involvement in AI cloud and computing infrastructure, its results will be a key event testing the resilience of the AI trade.

Cracker Barrel ( CBRL) rose more than 10% in pre-market trading. The company reported a surprise profit and raised its full-year outlook, driving the stock higher in pre-market trading. The stock was one of the few consumer names to see a significant gain in today's pre-market session.

Market Headlines

The U.S. and Iran exchange fire again. The U.S. launched a new round of missile strikes against Iranian targets in response to an attack on a U.S. military helicopter near the Strait of Hormuz. Iran has threatened to retaliate against any strikes, as geopolitical tensions drive up safe-haven sentiment in the markets.

U.S. May CPI data will be released tonight. The Bureau of Labor Statistics is set to announce the May CPI figures at 8:30 a.m. ET on June 10. Markets expect core CPI to rise 0.30% month-over-month and 2.90% year-over-year; headline CPI could climb to 4.2% year-over-year, marking the largest increase since April 2023.

TSMC's May revenue surged 30.1% year-over-year. The company reported sales of NT$417 billion for May, a 1.5% increase month-over-month, as it continues to benefit from robust demand for AI chips. However, TSMC's ADRs fell over 3% in pre-market trading, weighed down by a broader sell-off in U.S. tech stocks.

Broadcom partners with Apollo and Blackstone to advance an AI infrastructure platform. Reports suggest Broadcom has collaborated with the two private equity giants to launch the AI XPV platform with an initial investment of approximately $35 billion. The project aims to support over 20GW of AI computing capacity by 2028, underscoring the ongoing expansion in AI infrastructure financing.

Key Data & Events Preview

At 8:30 a.m. ET on June 10, the U.S. released May CPI data.

Oracle released its quarterly earnings report after the bell on June 10 ET.

On June 12 ET, the U.S. will release PPI, initial jobless claims, and the preliminary University of Michigan consumer sentiment index.