Tonight's Highlights | U.S. Major Futures Mixed, Trump Boosts Military Spending – Defense Sector Surges
U.S. pre-market on Thursday (January 8), the three major index futures closed lower collectively.
As of press time, Dow Jones futures fell 0.37%, S&P 500 futures fell 0.2%, Nasdaq 100 futures fell 0.27%.
Tech stocks were mixed pre-market: Apple down over 1.1%, ASML down over 1.5%; Palantir up nearly 2.5%, TSMC up ~1.3%.
Defense stocks strengthened overall: Lockheed Martin up over 8% pre-market, Raytheon Technologies up over 5%. Reports say Trump proposed raising U.S. military spending from $1 trillion to $1.5 trillion in FY2027.
The previous trading day, the Dow and S&P both closed lower — ending their streak of record highs. Markets largely ignored escalating global geopolitical risks from the U.S.-Venezuela situation, but rising tensions could test stock resilience.
Guggenheim Partners CIO Anne Walsh commented: “Geopolitical news often impacts markets short-term... but these effects are usually digested, and markets refocus on bigger price drivers like profits, margins, valuations, and other metrics.”
“The end result is the ‘buy-the-dip’ mentality returns, with very limited portfolio rebalancing opportunities.” Walsh believes given normalizing valuations and Fed cut prospects, stock fundamentals remain “quite good.”
U.S. Labor Department releases nonfarm payrolls Friday. Despite active business data, the job market faces pressure.
Saxo Bank CIO Charu Chanana said: “Markets are catching breath after 2026’s strong start. Fed policy debate isn’t over, and regional security adds investor caution.”
European stocks in session are lower collectively: Germany DAX −0.2%, UK FTSE 100 −0.34%, France CAC 40 −0.29%.
Corporate News
Commerce Ministry responds to review of Meta's Manus acquisition: Firms must comply with Chinese laws in overseas investments
At a regular press conference on January 8, Commerce Ministry spokesperson He Yadong responded to questions on reviewing Meta's acquisition of AI platform Manus: The Chinese government consistently supports firms in lawful, mutually beneficial cross-border operations and international tech cooperation.
Note that firms engaging in overseas investment, tech exports, data outbound, cross-border M&A must comply with Chinese laws and fulfill procedures. The Ministry, with relevant departments, will assess this acquisition's compliance with export controls, tech import/export, overseas investment, and other laws.
Trump-linked crypto firm World Liberty applies for banking license – plans to expand $3B stablecoin business
Co-founded by U.S. President Donald Trump, crypto firm World Liberty Financial is applying for a U.S. banking license for a subsidiary — aiding expansion of its $3 billion stablecoin USD1 business.
World Liberty said Wednesday its WLTC Holdings LLC submitted a new application to the U.S. Office of the Comptroller of the Currency to establish a national trust bank specializing in stablecoin services — World Liberty Trust.
Apple may release 200MP iPhone in 2028 – first major main camera upgrade in years since 48MP
Apple plans to debut a 200MP main camera in 2028 iPhones — the first major pixel upgrade in six years since iPhone 14 series bumped to 48MP in 2022.
Caterpillar expands Nvidia partnership
Heavy industrial equipment maker Caterpillar announced January 7 local time an expanded partnership with Nvidia — via new-generation AI-enhanced customer solutions and manufacturing systems to drive cross-industry innovation.
The statement says this collaboration will transform how Caterpillar customers, dealers, and employees operate.
TSMC 3nm process in high demand: Raises quotes, pauses new project starts in initial mass production
TSMC maintains high utilization for advanced processes, with 3nm in sustained shortage. Chip insiders say TSMC has raised 3nm quotes this year and temporarily halted new 3nm project starts.
Analysts attribute to full orders overwhelming capacity — short-term expansion speed can’t match surging client demand. TSMC is encouraging clients in early product planning to directly evaluate 2nm adoption for later mass production and cost allocation.