【US Pre-Market】AI Chip and Storage Sectors Under Pressure, Nvidia Falls Nearly 2%, Marvell Drops Over 6%, SanDisk Slumps Over 5%

On Tuesday (August 18) Eastern Time, futures on the three major U.S. stock indexes fell in unison in pre-market trading, as a sell-off in long-dated U.S. Treasuries, oil prices returning to high levels, and a pullback in previously strong AI hardware stocks collectively suppressed risk appetite. Markets continued to digest pressure from the 30-year U.S. Treasury yield rising to a nearly 19-year high, while watching Home Depot's earnings report, U.S. housing data, and the minutes of the Federal Reserve's July meeting set to be released this Wednesday.

As of press time, Dow futures fell 0.01%, S&P 500 futures dropped 0.42%, and Nasdaq 100 futures slid 1.18%.

Performance of the three major U.S. stock index futures, Source: Investing

In commodities, gold (XAUUSD) pulled back slightly, trading around $4,390; international oil prices remained elevated, with WTI (USOIL) crude trading near $84.1 and Brent crude rising to near $91. The outlook for negotiations following the expiration of the 60-day U.S.-Iran agreement remains unclear, with shipping risks in the Strait of Hormuz and the Red Sea continuing to provide important support for oil prices.

In cryptocurrencies, Bitcoin (BTC) continued to fluctuate around $64,200. Escalating tensions in the Middle East put pressure on high-volatility assets, but Bitcoin still held near $64,000, demonstrating relative resilience compared to U.S. tech stocks.

Market Moves

Home Depot (HD) rose over 2% in pre-market trading. The company's second-quarter revenue rose to $47.86 billion, higher than market expectations; adjusted earnings per share were $4.92, also beating expectations. Comparable sales increased 1.7%, and domestic U.S. comparable sales grew 1.3%. However, the company maintained its full-year sales growth and comparable sales guidance unchanged, indicating that high interest rates and a sluggish housing market continue to constrain large home improvement demand.

Baidu (BIDU) fell over 7% in pre-market trading. The company's second-quarter revenue dropped year-over-year to 31.325 billion yuan, and net profit fell significantly year-over-year. Although businesses such as AI Cloud and autonomous driving continued to expand, weakness in traditional advertising business still dragged down overall performance, as the market worried that AI investment would be difficult to fully offset pressures on core search advertising in the short term.

AI chip and data center hardware stocks were under pressure in pre-market trading. Nvidia (NVDA) fell about 2% in pre-market trading, AMD (AMD) dropped over 3%, Marvell Technology (MRVL) fell nearly 6%, and Super Micro Computer (SMCI) fell nearly 4%. As Nasdaq futures weakened noticeably, market pressure for profit-taking on AI capital expenditure returns and high-valuation hardware chains mounted.

Memory and optical communication sectors pulled back sharply in pre-market trading. Western Digital (WDC) fell over 6% in pre-market trading, Seagate Technology (STX) dropped nearly 6%, and SanDisk (SNDK) fell over 5%. Memory stocks had previously risen continuously driven by AI server demand and supply chain policy expectations, but experienced a concentrated pullback today amid rising long-term bond yields and a tech pullback.

Market News

Home Depot reported second-quarter financial results and maintained its full-year guidance. The company's second-quarter revenue, adjusted earnings per share, and comparable sales all beat expectations, but it still projects full-year sales growth of 2.5% to 4.5% and comparable sales growth of flat to 2%.

The Fed's July meeting minutes will be released this Wednesday. According to the Federal Reserve's calendar, the minutes from the July 28–29 FOMC meeting will be published three weeks after the policy meeting, with markets focusing on officials' commentary regarding inflation, employment, and the rate path for September.

Tensions in the Middle East escalated following the expiration of the U.S.-Iran agreement. U.S. President Trump reportedly has no intention of extending the expired 60-day agreement and warned Oman not to obstruct U.S. efforts to reach a deal with Iran. Meanwhile, operations by Yemen's Houthi rebels near the Red Sea continue to disrupt maritime security.

Key Data and Events Preview

At 8:30 a.m. ET on August 18, the U.S. released the July import and export price indices.

At 8:30 a.m. ET on August 18, the U.S. released July housing starts, building permits, and housing completions data.

At 9:15 a.m. ET on August 18, the Federal Reserve released July industrial production and capacity utilization.