TONIGHT’S HIGHLIGHTS | US Index Futures Rise Ahead of Fed Decision; Microsoft, Meta, and Tesla to Report After-Hours
On Wednesday, US stock index futures rose, supported by semiconductor stocks. Major European indices generally declined.
Global semiconductor stocks rose broadly after ASML released record quarterly results. As a lithography giant, its performance bolstered market confidence, with ASML's US shares up 5% in pre-market trading.
ASML's CEO stated that feedback from chipmaking customers indicates growing confidence in the sustainability of Artificial Intelligence (AI) related demand.
Storage infrastructure company Seagate Technology rose 10% in pre-market trading, as its second-quarter earnings and revenue both exceeded market expectations.
The Federal Reserve will announce its interest rate decision at 3:00 AM Thursday (Beijing Time). The market generally expects the Fed to keep the benchmark interest rate unchanged in the 3.5%–3.75% range, but traders will closely watch for clues regarding the mid-to-long-term direction of monetary policy.
Fed Chair Powell will hold a press conference at 3:30 AM. In addition to monetary policy, his comments on being investigated by the US Department of Justice and whether he will continue to stay at the Fed as a Governor are expected to become the focus of attention.
The US dollar continued its recent decline after US President Trump claimed he was "not concerned about a weaker dollar," which in turn boosted gold. Gold prices hit another all-time high, with the main gold futures contract once breaking through $5,300 per ounce during intraday trading; silver prices also rose simultaneously.
Earnings from several tech giants are imminent. Microsoft, Meta, and Tesla will release their quarterly results after the US market closes on Wednesday.
Corporate News
ASML: 2025 Full-Year Net Sales Reach €32.7 Billion, Gross Margin at 52.8%
ASML released its Q4 and full-year 2025 results. For the full year of 2025, ASML's net sales reached €32.7 billion, with a gross margin of 52.8% and net profit of €9.6 billion. As of the end of 2025, ASML's order backlog stood at €38.8 billion.
ASML expects Q1 2026 net sales to be between €8.2 billion and €8.9 billion, with a gross margin of 51% to 53%; full-year 2026 net sales are expected to be between €340 billion and €390 billion, with a gross margin of 51% to 53%.
Amazon Announces Cut of Nearly 16,000 Jobs, Will Continue Investing in Strategic Areas
Amazon announced an organizational restructuring on January 28. The layoffs will affect nearly 16,000 positions. "While making these adjustments, we will continue to hire and invest in strategic areas and functions that are critical to the company's future."
Amazon stated it would do its best to support all affected employees, offering a 90-day internal job transfer period for most US employees (international employees' transfer periods will vary based on local and national requirements). For team members who cannot find a new position at Amazon or choose not to, Amazon will provide severance pay, outplacement services, and health insurance benefits (where applicable).
Starbucks Q1 Combined Net Revenue Grows 6% to $9.9 Billion
On January 28, Starbucks announced its financial results for the first quarter of fiscal year 2026 ending December 28, 2025. Global comparable store sales grew 4%, primarily driven by a 3% increase in comparable transactions and a 1% increase in average ticket. China comparable store sales grew 7%, driven by a 5% increase in comparable transactions and a 2% increase in average ticket.
The company announced combined net revenue for the first fiscal quarter grew 6% to $9.9 billion, or 5% on a constant currency basis. A net of 128 new stores were opened in the first fiscal quarter, bringing the total store count to 41,118 at the end of the period, with company-operated stores accounting for 52%.
As of the time of publication, Starbucks rose over 6% in pre-market trading.
SK Hynix to Establish AI Solutions Company in the US
SK Hynix issued a statement on January 28 saying it will restructure Solidigm, its enterprise SSD manufacturing subsidiary located in California, thereby establishing an AI solutions company in the US tentatively named AI Co. The company's official name will be announced later this year.
SK Hynix stated the new company will serve as an AI-focused business unit to drive SK Hynix's AI strategy.
SpaceX Considering IPO in Mid-June
According to reports, SpaceX is considering an IPO in mid-June, seeking to raise $50 billion at a valuation of approximately $1.5 trillion.
Boeing Plans to Deliver 500 737 Series Aircraft This Year
According to reports, Boeing plans to deliver 500 737 series aircraft this year, with overall deliveries expected to grow by about 10%, including 90 to 100 wide-body 787 Dreamliners.
Anthropic Raises Revenue Forecasts for the Coming Years
According to reports, US AI startup Anthropic has significantly raised its revenue forecasts for the coming years, expecting sales to grow fourfold this year to $18 billion, and reach $55 billion by 2027.
Other reports state that Anthropic completed its latest funding round at a valuation of $350 billion, with the funding amount far exceeding the initial $10 billion target.
Crypto Giant Tether CEO: Tether to Become One of the World's Largest Gold Central Banks
According to reports, Tether CEO Paolo Ardoino revealed that the company plans to continue investing its massive profits into the gold market while starting to compete with banks in the gold trading sector. "Let's just say, we will essentially soon become one of the world's largest gold central banks."
More than 1 ton of gold is transported into a Tether vault every week, which is currently known to be the world's largest non-bank, non-state gold warehouse.