US Stock Market Outlook: Talks Pause, Active Pre-Market for Top Stocks, IONQ Soars 13%

Market Overview

On Thursday morning, despite Nvidia's (NVDA) earnings exceeding expectations, the market reaction was muted. The three major U.S. stock index futures showed little movement, with the Dow futures up 0.05%, Nasdaq futures up 0.01%, and S&P 500 futures up 0.04%.

Pre-Market Movements

• Star Tech Stocks:

  • Star tech stocks fell, with Salesforce (CRM) down over 3%, and Tesla (TSLA), AMD, and Intel (INTC) each down nearly 1%.

• Chinese Stocks:

  • Most popular Chinese stocks declined, with Trip.com (TCOM), Bilibili (BILI), and Li Auto (LI) down over 4%, and Xpeng Motors (XPEV) down over 3%. Alibaba (BABA) and Baidu (BIDU) fell over 2%.

• Quantum Computing Stocks:

  • IonQ Inc (IONQ) surged over 13% post-earnings, while Rigetti Computing (RGTI) and Quantum Computing (QUBT) rose over 4% and 3%, respectively.

• Korean ETFs:

  • Korean ETFs saw gains, with Direxion Daily South Korea Bull 3X Shares (KORU) up over 12%.

Nvidia's Earnings Report

Nvidia's stock rose over 1% in pre-market trading, marking the 14th consecutive quarter of revenue exceeding expectations. However, concerns about the sustainability of AI demand and supply constraints have shifted market focus. Goldman Sachs reaffirmed a "Buy" rating on Nvidia, projecting a price target of $250.

Key Developments

SK Hynix and SanDisk Collaboration

SK Hynix (07709.HK) and SanDisk (SNDK) are collaborating to standardize high-bandwidth flash memory (HBF), aiming to fill the gap between HBM and SSD technologies. This initiative is expected to be commercialized by 2027.

IonQ's Strong Q4 Performance

IonQ reported a Q4 revenue of $61.9 million, a 429% year-over-year increase, leading to a pre-market surge of 13%. The company anticipates Q1 2026 revenue between $48 million and $51 million.

Baidu's Q4 Earnings

Baidu (BIDU) reported Q4 revenue of 32.74 billion yuan, exceeding expectations, with AI subscription revenue up 143%. The company announced a $5 billion buyback plan and a new dividend policy.

Tesla's New Promotion in China

Tesla (TSLA) launched a limited-time promotion in China for Model 3/Y, with a down payment starting at 79,900 yuan, aimed at boosting sales amid increasing competition.

Alibaba's AI Programming Package

Alibaba (BABA) introduced a low-cost AI programming package integrating four major open-source models, with competitive pricing aimed at attracting developers.

Conclusion

The market remains cautious despite strong earnings from key players like Nvidia and IonQ. The focus is shifting towards sustainability in AI demand and the implications of rising competition in the tech sector.