Why Dow and S&P 500 Futures Are Up Pre-Market; Tesla, Broadcom, SK Hynix, Micron, SNOW in Focus

TradingKey - In US pre-market trading on September 3, futures on the three major stock indexes were mixed. As of press time, Dow Jones futures rose 0.22%, S&P 500 futures gained 0.08%, and Nasdaq futures fell 0.07%.

[Source: CME Group]

WTI crude oil eased slightly to around $90, while the 10-year US Treasury yield fell to approximately 4.77%. The pullback in oil prices and US Treasury yields from recent highs marginally alleviated market concerns over rising inflation and borrowing costs.

Meanwhile, on September 2, Nvidia (NVDA) rose more than 3%, while Snowflake (SNOW) reported strong after-hours earnings and raised its full-year product revenue guidance, further bolstering market focus on demand for AI infrastructure and enterprise software.

On the labor market front, US ADP private sector payrolls added 38,000 jobs in August, below the expected 48,000, signaling a slowdown in employment growth. Investors are awaiting the nonfarm payrolls report scheduled for release on September 4 to further gauge the Federal Reserve's interest rate trajectory.

Tesla: Cybercab Launch Enters Critical Window

Tesla (TSLA) shares rose over 1% in premarket trading as the market focused on the Cybercab unveiling event in Austin. Cybercab is a two-seater autonomous vehicle featuring a design with no steering wheel or pedals, built for fully autonomous operational scenarios, and is viewed as a key product for Tesla in advancing the commercialization of autonomous driving.

In addition to exterior design, the market's focus for the event also includes Cybercab's commercialization timeline, operating scale, costs, and regulatory progress.

Tesla shares rose a cumulative 18% in August as market expectations for the Cybercab and Robotaxi business continued to heat up. Wedbush analyst Dan Ives maintained a $600 price target on Tesla, remaining bullish on the long-term value of FSD, Robotaxi, and Optimus.

Broadcom: AI Revenue Surges, But High Expectations Trigger Stock Decline

Broadcom (AVGO) was another focus in pre-market trading. According to the company's third-quarter fiscal 2026 results, revenue reached $29.59 billion, up 86% year-over-year, with AI semiconductor revenue reaching $16.7 billion, up 221% year-over-year and 54% quarter-over-quarter.

The company expects fourth-quarter revenue of approximately $34.8 billion, a year-over-year increase of 93%, slightly below previous market expectations of around $35 billion.

Due to previously high market expectations for AI chip business growth, Broadcom's stock price dropped over 6% at one point following the earnings release and remained down in pre-market trading on September 3.

Broadcom also expects fourth-quarter AI semiconductor revenue to reach $21.7 billion, up 236% year-over-year. The strong AI semiconductor growth demonstrates that demand for custom AI accelerators and networking chips remains a key driver of the company's performance growth.

SK Hynix, Micron Shares Under Pressure

The memory sector underperformed the broader market in pre-market trading on September 3. As of press time, SK Hynix (SKHY) fell over 3%, while Micron Technology (MU) slipped 0.7%. On the news front, Micron's Taiwan union is moving forward with a strike vote over bonus disputes, with over 80% of members supporting it. If a work stoppage ultimately occurs, it could impact local DRAM and HBM output.

In addition, China's DRAM leader ChangXin Memory Technologies (CXMT) has seen its global share surge to around 10% after completing an $8.6 billion IPO. Its rapid expansion in LPDDR6 and in-house developed HBM has heightened market concerns over the erosion of market share among traditional giants.

Snowflake Surges Over 20% Pre-Market as AI Products Help Beat Expectations

Snowflake became the biggest highlight in the software sector during pre-market trading. After the market closed on September 2, the company reported its fiscal 2027 second-quarter financial results, with total revenue reaching $1.55 billion, up 35% year-over-year; product revenue reached $1.49 billion, up 37% year-over-year; and adjusted EPS was $0.62, beating expectations of $0.45.

The company also raised its fiscal 2027 product revenue guidance from the previous $5.84 billion to $6.07 billion. AI coding assistant CoCo (formerly Cortex Code) has covered over 9,100 accounts, and the number of CoWork accounts reached 5,800.

Boosted by the results and guidance, Snowflake shares jumped over 20% at one point in pre-market trading on September 3. The accelerated growth of the company's AI products indicates that enterprise AI demand is further extending into data platforms and the software application layer.

Summary

In U.S. premarket trading on September 3, market focus was primarily centered on three main themes: employment data, AI tech stocks, and the Cybercab launch event.

ADP payroll additions came in below expectations, putting greater market focus on the nonfarm payrolls report to be released on September 4; Tesla's Cybercab launch event will further test market expectations for Robotaxi commercialization; although Broadcom maintained rapid growth in AI semiconductor revenue, its quarterly guidance fell slightly short of previous high market expectations, putting pressure on its stock price; meanwhile, Snowflake surged on AI business growth and an upgraded full-year guidance.

Overall, demand for AI infrastructure and enterprise software remains a key driver for tech stocks, but employment data, oil prices, and interest rate expectations will continue to influence short-term market risk appetite.