Tonight Highlights | SOX Index Challenges 19-Day Streak as OpenAI "Smartphone" Rumors Jolt Markets
U.S. equity futures remained flat during Monday’s pre-market session. As the diplomatic front in the Iran conflict awaits clear progress and the earnings season takes a brief "breather," the three major indices showed little movement.
However, the exceptionally strong semiconductor sector continues to push higher. The Philadelphia Semiconductor Index (SOX) will attempt to extend its record-breaking winning streak to a 19th consecutive session tonight.
As of press time, Nasdaq 100 futures fell 0.09%, S&P 500 futures dropped 0.08%, and Dow futures slipped 0.09%. Brent crude futures remained stagnant, trading sideways near the $100 per barrel mark.
Regarding the Iran situation, reports over the weekend suggested that Tehran has proposed a "three-stage" negotiation framework to Washington.
The focus is prioritized on extending the ceasefire or ending the war, followed by reopening the Strait of Hormuz, and finally discussing nuclear issues. Additionally, President Trump is expected to meet with cabinet officials in the Situation Room on Monday.
The U.S. semiconductor sector, which has been rallying for nearly a month, looks poised to challenge new records on Monday.
Qualcomm surged over 9% pre-market on rumors of a "smartphone collaboration with OpenAI," while other high-fliers like NVIDIA, TSMC, SanDisk, and Micron Technology also trended higher.
This week also marks a major reporting period for tech giants. The "Cloud Trio"—Amazon, Microsoft, and Alphabet (Google)—are all set to release earnings after the bell on Wednesday, followed by Apple on Thursday. These four companies account for a quarter of the S&P 500's total market capitalization.
Furthermore, the Federal Reserve will announce its latest interest rate decision on Wednesday. On the same day, the Senate Banking Committee is scheduled to vote on the nomination of Kevin Warsh as the next Fed Chair.
The high-stakes legal battle between Elon Musk and "ChatGPT father" Sam Altman also kicks off on Monday. Musk, an early backer of OpenAI, is demanding that the organization return to its non-profit roots and is calling for the removal of Altman and other executives.
Jury selection begins Monday in an Oakland federal court, with opening statements expected on Tuesday.
Other News Highlights
China’s NDRC has officially prohibited a foreign acquisition of the "Manus Project" on legal and regulatory grounds, requiring the parties involved to rescind the transaction.
Qualcomm jumped nearly 9% following a report from analyst Ming-Chi Kuo, who stated that OpenAI plans to develop its own smartphone. The AI firm is reportedly collaborating with MediaTek and Qualcomm on mobile processors, with Luxshare Precision as the exclusive system design and manufacturing partner. Mass production is expected by 2028. Consequently, Apple shares weakened, falling over 1%.
Wedbush analyst Dan Ives predicts a massive consolidation of Elon Musk’s empire, estimating an 80-90% probability of a merger between Tesla and the soon-to-be-public SpaceX by the first half of 2027.
Meta announced a deal with startup Overview Energy to procure up to 1 GW of space-based solar power. Overview plans to collect solar energy via satellites and beam it back to Earth, with an initial orbital demonstration slated for 2028.
Chemical giant BASF has further raised prices for plastic additives—including antioxidants and light stabilizers—by up to 25% effective immediately. The company cited surging raw material, energy, and logistics costs driven by the Middle East war.
In healthcare, U.S.-listed Organon surged 16.96% pre-market after Indian generic drug giant Sun Pharma announced an acquisition of the company at a valuation of $11.75 billion. Organon, a spinoff from Merck (MSD), focuses on women's health and established brands.