Tonight's Highlights: Zuckerberg Returns to Open-Source Models; Middle East Tensions See New Twists
Following the S&P 500's record-high close last Friday, U.S. stock index futures remained muted in Monday's pre-market trading.
Market focus has shifted to the U.S. inflation data due later this week, while investors also keep a cautious eye on fresh developments in the Middle East.
As of writing, Nasdaq 100 futures (SEP6) slipped 0.14%, S&P 500 futures fell 0.08%, and Dow futures dropped 0.17%.
Regarding the reopening of the Strait of Hormuz, new complications emerged over the weekend. Iranian Foreign Minister Araghchi stated that while talks between Iran and Oman to establish a new shipping route in the Strait of Hormuz have reached their final stages, "this does not mean the strait will reopen."
He emphasized that the reopening remains contingent on the U.S. satisfying a series of conditions first.
Reportedly, Iran's demands include "ceasing verbal threats against Iran," "permanently halting military aggression against Iran and its allies," "lifting the naval blockade," and "providing full compensation for damages caused by the two wars over the past two years."
In response to these conditions, Brent crude rallied to a high of $85 per barrel on Monday.
Also over the weekend, another oil tanker operated by Abu Dhabi National Oil Company was targeted in the Strait of Hormuz, while Yemen's Houthi rebels claimed responsibility for an attack on Saudi Arabia's Jizan oil refinery.
The Saudi Energy Ministry stated that the fire at the Jizan refinery was extinguished early Sunday morning, though it did not disclose the cause of the blaze.
In contrast to previous threats of heavy retaliation against Iran, U.S. President Trump stated on Sunday that he is currently taking a "low-key approach" to the Iran issue, signaling a preference for economic pressure over large-scale military action.
Other News
Latest Study: iPhone 18 Pro Production Costs Jump Nearly 40%
Adding to ongoing discussions regarding upcoming iPhone price hikes, industry research firm TrendForce released a study on Monday comparing the Bill of Materials (BOM) costs of recent iPhone Pro models (256GB).
The study estimates that the iPhone 18 Pro, set for release in Q3 2026, will cost 38% more to produce than its predecessor from last year.
With memory prices continuing to rise, that cost gap is expected to widen further in the first half of next year.
Sony and TSMC Plan Joint Venture Factory
Reports emerged on Monday that Sony Group and TSMC plan to jointly invest approximately ¥1 trillion (around $6.32 billion) to co-develop and manufacture next-generation image sensor chips.
Nvidia Takes Stake in Power Infrastructure Developer
Nvidia has agreed to invest up to $3 billion in Lancium, a power infrastructure developer backed by Blackstone. Lancium also serves as the power infrastructure provider for the "Stargate" AI campus operated by OpenAI and Oracle in Texas.
Apple Reportedly Considering Apple Watch Redesign
Renowned tech reporter Mark Gurman noted that Apple is considering a major revamp of its Apple Watch lineup as screenless fitness devices and smart health rings—such as the Oura Ring from Finnish brand Oura—pose increasingly fierce competition.
Intel Announces Public Offering Plan
Intel announced in pre-market trading on Monday that it intends to raise $15 billion through a common stock offering, with underwriters granted an option to purchase up to an additional $2.25 billion in shares.
The company stated that the offering will help it capture growth opportunities in AI computing, physical AI, custom silicon, advanced packaging, and external foundry operations while maintaining a strong balance sheet and investment-grade rating.
Following the news, Intel shares fell over 5% in pre-market trading.
Bezos Reportedly Close to Buying Stake in Premier League Club
Latest reports on Monday morning indicate that a consortium including Amazon founder Jeff Bezos is nearing a deal to acquire approximately a one-third stake in Liverpool Football Club.
The investment would value the club at $6 billion, making it one of the largest transactions in sports history.
Zuckerberg Pivots Back to Open-Source Model Strategy
In a video released on Monday, Meta CEO Mark Zuckerberg announced that the company will open-source the weights for its latest AI model, Muse Spark 1.2.
He also revealed plans to release a new open-source model family named Muse Glimmer, specifically optimized to run on laptops.
Strategy Sells Bitcoin Again
Strategy disclosed on Monday that it sold 1,690 Bitcoins last week to fund preferred stock repurchases.
The sale raised approximately $109 million, marking the company's second consecutive week of Bitcoin sales. Strategy had previously stated last Monday that it unloaded roughly $105 million worth of the cryptocurrency the week prior.
Berkshire Ticks Up Post-Earnings
Berkshire Hathaway Class B shares (BRK.B) rose 0.5% in pre-market trading. In its quarterly report released on Saturday, the company revealed that its quarterly profit more than doubled, driven by investment gains alongside solid performance in its industrial and retail segments.
Catching market attention was Berkshire turning into a net buyer of stocks for the first time in over three years—purchasing $23.5 billion in equities—while also resuming its share buyback program.