US Stock Market Outlook: Historic Drop, V-Shaped Rebound, Trump’s $12 Billion Plan, Oracle Rises.

US Stock Market Overview

As of Monday morning, US stock futures showed a narrowing decline. The Dow futures were down 0.08%, having previously dropped nearly 1%. The Nasdaq futures fell 0.63%, with a peak decline of over 1.8%, while the S&P 500 futures were down 0.37%, previously dipping over 1.3%.

Major Tech Stocks

Most major tech stocks were down in pre-market trading.

• Micron Technology (MU) rose nearly 1%.
• Oracle (ORCL) turned from a decline to a gain of over 5%.
• Tesla (TSLA), Nvidia (NVDA), and AMD fell over 1%.

Chinese Stocks

Popular Chinese stocks also saw declines:

• Xpeng Motors (XPEV) dropped over 4%.
• Baidu (BIDU), NIO (NIO), and New Oriental (EDU) fell over 1%.
• Pinduoduo (PDD) rose over 1%.

Rare Earth Stocks Surge

US rare earth stocks experienced a rapid increase in pre-market trading:

• NioCorp Developments (NB) surged over 9%.
• Critical Metals (CRML) rose over 8%.
• United States Antimony (UAMY) increased over 7%.

Reports indicate that Trump plans to initiate a $12 billion strategic critical minerals reserve project, known as "Project Vault," aimed at protecting US manufacturers from supply shocks.

Cryptocurrency Market Update

Cryptocurrency prices fell sharply over the weekend. Bitcoin (BTC) briefly dropped below $75,000 but later recovered above $77,000. Ethereum (ETH) fell below $2,200 before rising above $2,300.

• Cryptocurrency-related stocks fell collectively in pre-market trading, with Strategy (MSTR) down nearly 7% and Bitmine Immersion Technologies (BMNR) down nearly 10%.

Gold and Silver Prices

Gold prices fell to around $4,400 before recovering to above $4,700, with a pre-market decline narrowing to 2%. Silver prices dropped to $71.36 before rising above $83.

• Most gold stocks turned to gains, with AngloGold Ashanti (AU) and Hycroft Mining (HYMC) rising over 2%.

Energy Sector Decline

Oil prices fell, leading to a collective decline in US energy company stocks:

• Apache Corporation (APA) and EQT Energy (EQT) fell over 3%.
• Occidental Petroleum (OXY) and Devon Energy (DVN) dropped over 2%.

Semiconductor Industry Update

TSMC is facing a capacity crunch for its 2nm process, with Apple securing the first batch of production. AMD and Google are in line, while Nvidia is targeting the 1.6nm process.

• The competition for TSMC's advanced processes is heating up, with major players like Nvidia and AMD locking in future nodes.

Tesla's Breakthrough in Battery Technology

Tesla CEO Elon Musk confirmed that the company has achieved large-scale production of dry electrode batteries, marking a significant advancement in lithium battery technology.

• This technology eliminates toxic solvents and expensive drying steps, significantly reducing manufacturing costs and energy consumption.

Upcoming Tesla Products

Tesla announced that its third-generation Optimus robot will debut in Q1 2026, with a target production capacity of 1 million units annually.

SpaceX Financials

Reports indicate that SpaceX earned approximately $8 billion in EBITDA last year, with Starlink accounting for at least 50% of revenue. The company is expected to go public around Musk's 55th birthday.

Oracle's Financing Plan

Oracle has initiated a financing plan of up to $50 billion to address cash flow issues and Wall Street warnings, with its stock rebounding over 5% in pre-market trading.

Nvidia's Investment in OpenAI

Nvidia CEO Jensen Huang stated that the proposed $100 billion investment in OpenAI is not a commitment but will be considered in stages.

Apple’s Developments in India

Apple has secured a significant advantage in India by providing tax exemptions for its suppliers over the next five years.

Conclusion

The market is currently experiencing volatility, with significant movements in tech stocks, cryptocurrencies, and commodities. Investors are advised to stay informed on these developments as they unfold.