US Pre-Market: Oil Prices Drop Below $100, Intel Leads Chip Stocks, Trump Tariffs Strike Again

TradingKey - US stock index futures rose across the board in pre-market trading on Friday Eastern Time, as the market attempted to stabilize following a sharp sell-off in tech stocks in the previous session. Intel's earnings report and stronger-than-expected guidance boosted some tech stocks, but the situation in the Middle East, international oil prices, and a new round of US tariff policies continued to cap market risk appetite.

As of press time, Dow futures rose 0.40%, S&P 500 futures rose 0.18%, and Nasdaq 100 futures rose 0.06%.

Performance of the three major US stock index futures, Source: Investing

In commodities, international oil prices fell back from their highs. WTI ( USOIL) crude fell about 2.7% to $89.7 per barrel; Brent crude fell about 3.1% to $97.6 per barrel. Brent crude had briefly breached $102 in the previous session before profit-taking ensued, but attacks on tankers in the Red Sea and transit risks in the Strait of Hormuz kept oil prices elevated. Gold ( XAUUSD) extended its weakness, fluctuating around $4,050. Rising energy prices reinforced expectations of Federal Reserve rate hikes, and the strengthening US dollar and Treasury yields continued to weigh on non-yielding gold.

In cryptocurrencies, Bitcoin ( BTC) fluctuated around $65,000. The rebound in US stock futures provided some support to market sentiment, but expectations of high interest rates, geopolitical risks, and tariff uncertainties limited the rebound of crypto assets.

Market Movers

Intel ( INTC) rose over 3% in premarket trading and once rose over 5% intraday. The company's second-quarter revenue reached $16.1 billion, up 25% year-on-year, and adjusted earnings per share were $0.42, both beating market expectations. Data center and AI business revenue reached $6.26 billion, higher than the market estimate of $5.37 billion. Intel expects third-quarter revenue to be $15.8 billion to $16.8 billion and has raised its investment plans for the next two years to meet server CPU demand driven by AI data centers.

Oracle ( ORCL) rose nearly 3% in premarket trading. The U.S. Department of Defense announced the signing of an agreement with Oracle with a maximum value of nearly $7 billion and a maximum term of 10 years, consolidating the Department of Defense's on-premises software licenses into a single contract framework. The agreement aims to reduce fragmented procurement and lower software spending.

Chip stocks diverged in premarket trading. AMD ( AMD) rose about 1% as Intel's earnings sent positive signals for server CPU demand; Micron Technology ( MU) fell nearly 2%, and Nvidia ( NVDA) fell about 0.4%. As South Korea's Samsung Electronics and SK Hynix fell 7.6% and 8.3% respectively during the Asian session today, the sell-off sentiment in Asian AI and memory chip stocks continues to weigh on the U.S. semiconductor sector.

Market News

The Trump administration imposes new tariffs on 60 trading partners. The U.S. announced tariffs of 10% to 12.5% on 60 trading partners, including the European Union, China, and Japan, citing the relevant economies' failure to fully enforce regulations banning imports of products made with forced labor. The new tariffs will replace the expiring temporary global tariffs.

Trump threatens further military action against Iran and the Houthis. Previously, the Houthis attacked two Saudi oil tankers, sparking market concerns of simultaneous shipping disruptions in both the Red Sea and the Strait of Hormuz. Brent crude briefly broke through $102 per barrel on Thursday, closing up about 7%.

The European Central Bank keeps interest rates unchanged. The ECB maintained its deposit facility rate at 2.25%, with the main refinancing rate and the marginal lending rate held at 2.40% and 2.65%, respectively. The ECB stated it will continue to monitor the duration of the energy shock and its indirect and second-round inflationary effects.

Key Data/Events Preview

At 8:00 AM ET on July 24, the US will release the final Building Permits for June, with market expectations at 1.367 million units, compared to a prior value of 1.41 million units.

At 9:45 AM ET on July 24, the US will release the flash S&P Global Manufacturing and Services PMI for July. The Manufacturing PMI is expected to be 54.4, compared to a prior reading of 53.9; the Services PMI is expected to be 51.3, against a prior reading of 51.2.

At 10:00 AM ET on July 24, the US will release New Home Sales for June, with market expectations at 609,000 units, compared to a prior reading of 580,000 units.