Tonight's Highlights: Samsung Earnings Trigger Global Chip Sell-Off; Nasdaq 100 Futures Slip Nearly 1%
On Tuesday, US equity futures traded mixed as Dow futures notched modest gains, while S&P 500 and Nasdaq 100 futures slid under the weight of weakening semiconductor names. Major European indices were mixed.
In pre-market action, Micron and SanDisk dropped over 6% at one point, while chip components including KLA, Marvell Technology, Broadcom, and AMD all trended lower.
The sell-off originated in the Asia-Pacific session, where South Korea’s KOSPI benchmark slumped nearly 5% on Tuesday, dragged down by a near 7% plunge in memory giant Samsung Electronics. Although Samsung posted a massive spike in Q2 profits, mounting market anxieties over future capital expenditures and demand ultimate eclipsed the blockbuster print.
"The price action in Samsung reflects one of the largest risks facing the market in the coming weeks," noted Adam Crisafulli, founder of Vital Knowledge. "Absolute numbers for Q2 earnings season could look exceptionally strong, but unlike the Q1 cycle, market expectations are already highly optimistic—with the S&P 500 trading roughly 1,000 points higher than before the Q1 season. Consequently, the bar for execution has risen significantly."
Elsewhere, SpaceX shares ticked slightly higher in pre-market trading ahead of its official fast-track inclusion into the Nasdaq 100 index on Tuesday.
Energy prices edged upward after Iran’s Revolutionary Guard opened fire on two commercial vessels near the Strait of Hormuz. Brent crude moved back toward $73 per barrel, while European natural gas prices gained in tandem.
Corporate News
SpaceX Clinches Broad Wall Street Backing; Morgan Stanley Sets Street-High $300 Target
Following the expiration of the IPO quiet period, multiple Wall Street underwriters launched coverage on SpaceX. Aggregate data reveals that at least six brokerages—including Morgan Stanley, Goldman Sachs, and UBS—initiated with "Buy" or equivalent ratings, cheering the company's long-term growth trajectory.
Morgan Stanley established a Street-high price target of $300, representing roughly 87% upside from Monday's close of $160.42. RBC and Banco BTG Pactual both issued targets of $225, while UBS, Goldman Sachs, and Stifel pitched $210, $205, and $190, respectively.
Analysts noted that while margins, execution risks, and elevated valuations remain core focuses, the company's multi-year growth potential in aerospace and artificial intelligence is widely embraced.
Samsung Electronics Projects Q2 Operating Profit to Rocket 1,810% YoY
Samsung Electronics released its Q2 earnings guidance, forecasting revenue of KRW 171.00T, up 129% year-over-year to beat the consensus estimate of KRW 169.23T and the prior year's KRW 74.6T. Q2 operating profit is projected at KRW 89.40T, an 1,810% explosion year-over-year that clears the KRW 84.2T consensus and the KRW 4.7T recorded in the same period last year. Samsung will disclose full quarterly results on July 30.
Saudi Aramco slashes Key Crude Pricing for Asia
Facing a surge in global supply and intensifying competition for buyers, Saudi Arabia aggressively slashed official selling prices (OSPs) for its flagship crude to Asian buyers, offering discounts for the first time since the 2020 price war.
According to a price list released on July 6, Saudi Aramco will lower next month’s Arab Light pricing by $11 per barrel, moving it to a $1.50 per barrel discount against the regional benchmark.
Previous instances of Arab Light trading at a discount occurred only during the price wars of 2020 and 2015; this adjustment also marks the largest single-month drop in official selling prices since at least 2000.