【US Pre-Market】Memory Chip Stocks Rally as SanDisk Surges Over 5%, Micron and Western Digital Gain Over 3%

TradingKey - On Monday, August 17, US Eastern Time, futures on the three major US stock indices were mixed in pre-market trading, with sentiment in tech stocks relatively stronger. The market entered a relatively quiet week after the S&P 500 posted its third consecutive weekly gain last week. Investors are focusing on the Fed's July meeting minutes, the New York Fed's Empire State Manufacturing Survey, and earnings reports from major retailers such as Walmart, Home Depot, and Target to gauge the next direction of US consumer spending and interest rate expectations.

As of press time, Dow futures were down slightly by about 0.18%, S&P 500 futures rose about 0.11%, and Nasdaq 100 futures gained about 0.54%.

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

In commodities, gold (XAUUSD) continued its strong trend, with spot gold trading near above $4,400. Weakening US economic data, a pullback in the US dollar, and Middle East uncertainties continue to support gold prices. International oil prices diverged, with WTI (USOIL) crude oil oscillating around $82.8, and Brent crude hovering near $89.3. The expiration of US-Iran-related agreements and unresolved shipping risks in the Strait of Hormuz continue to limit the downside for oil prices.

In cryptocurrencies, Bitcoin (BTC) hovered near $63,600. A slight pullback in US Treasury yields improved the pricing environment for risk assets, but geopolitical tensions and wait-and-see sentiment ahead of this week's Fed meeting minutes left overall upside momentum for crypto assets limited.

Market Moves

Memory chip stocks collectively strengthened in pre-market trading. Micron Technology (MU) rose over 3% in pre-market trading, SanDisk (SNDK) gained over 5%, Western Digital (WDC) rose over 3%, and Seagate Technology (STX) advanced over 2%. U.S. Commerce Secretary Howard Lutnick stated that the Trump administration discourages Apple from sourcing memory chips from China. Coupled with SanDisk's recent Investor Day releasing strong long-term growth and margin guidance, the market continues to trade on the tight memory supply-and-demand logic driven by AI servers.

AI hardware stocks extended their recovery in pre-market trading. Nvidia (NVDA) edged up in pre-market trading, AMD (AMD) gained over 1%, Intel (INTC) rose over 2%, and Marvell Technology (MRVL) climbed nearly 3%. Against the backdrop of Nasdaq futures leading gains in pre-market trading, capital continued to concentrate in AI chips, data center interconnects, and memory supply chains, with the hardware side performing significantly stronger than software.

Software stocks came under pressure in pre-market trading. Oracle (ORCL) fell over 1% in pre-market trading, ServiceNow (NOW) dropped over 1%, and The Trade Desk (TTD) edged lower. As AI hardware and memory stocks regained capital attention, high-valuation software stocks performed weakly in pre-market trading, reflecting ongoing style rotation within the market.

Retail stocks saw limited volatility in pre-market trading. Home Depot (HD) dipped slightly in pre-market trading, while Walmart (WMT) and Target (TGT) were also weak. With major U.S. retailers intensively reporting earnings this week, investors will focus on observing whether U.S. consumer spending continues to cool amid high oil prices and high interest rates.

Market News

The U.S. August New York Fed Empire State Manufacturing Index will be released today. According to the New York Fed schedule, the August Empire State Manufacturing Survey will be published at 8:30 AM ET on August 17, providing the market with the latest clues on U.S. manufacturing activity and price pressures.

The minutes of the Federal Reserve's July meeting will be released this Wednesday. According to the Fed's official schedule, the minutes from the July 28–29 FOMC meeting will be published on August 19 Eastern Time, and the market will focus on officials' discussions regarding inflation, employment, and the future interest rate path.

Major U.S. retailers enter peak earnings season this week. Home Depot will report earnings before the market open on Tuesday, Lowe's (LOW) and Target will report earnings before the market open on Wednesday, while Walmart will report on Thursday, as the market looks to gauge U.S. consumer resilience.

The 60-day memorandum of understanding between the U.S. and Iran expires on Monday. According to reports, U.S.-Iran negotiations remain stalled, and the U.S. is preparing to introduce new sanctions, while shipping risks in the Strait of Hormuz and Middle East supply uncertainties continue to draw attention.

Important Data and Events Preview

At 8:30 AM ET on August 17, the U.S. released the August New York Fed Empire State Manufacturing Index.

At 11:00 AM ET on August 17, the New York Fed released the SCE Labor Market Survey.