TLDR
- Stock futures fell Monday after U.S.-Iran peace talks failed, pushing oil prices and bond yields higher.
- Intel and Sandisk dropped in premarket trading as investors moved away from artificial-intelligence stocks.
- Chevron and ExxonMobil gained as crude prices climbed.
- Boeing slipped after a report of a software glitch tied to an automated landing feature.
- NIO rose after agreeing to a battery-swapping deal with Geely worth roughly $2.4 billion.
Stock futures dropped on Monday morning. The decline came after peace talks between the United States and Iran ended without a deal.
The failed talks pushed oil prices higher. Bond yields also climbed as a result.
Brent crude rose above $107 a barrel. Treasury yields moved closer to 5%.
AI Stocks Struggle as Investors Pull Back
Investors moved away from riskier assets on Monday. This shift hit artificial-intelligence stocks hard.
Intel shares slid about 3.4% before the opening bell. The chip maker was one of the biggest decliners in premarket trading.
Sandisk, a memory-card maker, fell around 3.3%. Other chip companies dropped too.
Advanced Micro Devices, Corning, Dell, Marvell, and Micron all slipped in early trading. Concerns about AI safety also weighed on sentiment.
Energy Stocks Climb as Oil Prices Rise
Oil stocks moved in the opposite direction. Rising crude prices lifted energy companies across the board.
Chevron added about 1.3% in premarket trading. ExxonMobil gained 1.6%.
Other energy names also rose. APA, Baker Hughes, Devon Energy, Diamondback Energy, and Halliburton each posted gains Monday morning.
Boeing shares slipped 1.1% after a report from The Wall Street Journal. The report said the plane maker found a software glitch.
The glitch could disrupt an automated landing feature. Boeing responded to the report in a statement.
“Our engineers are working on a software update to permanently address the issue,” the company told Barron’s.
NIO shares climbed about 2.2% Monday. The gain came after news of a deal with Zhejiang Geely Holding Group.
Geely agreed to acquire a 30% stake in NIO’s battery-swapping business. The deal values the unit at roughly $2.4 billion.
Geely will contribute its own commercial-vehicle battery-swapping business as part of the agreement. The company will also pay 640 million yuan, or about $95 million, in cash.
The two companies are also discussing further cooperation. This includes Geely adopting NIO’s battery-swapping technology for its passenger and commercial vehicles.
They are also considering opening the charging and swapping collaboration to other companies in the industry.
Elsewhere in the market, Gold Fields shares fell about 13%. Northern Star Resources rejected a $27 billion takeover proposal from the gold miner.
Gold Fields had offered a combination of shares and cash for each Northern Star share. Northern Star’s board called the offer “highly opportunistic.”
Kodiak Sciences shares rose about 7% ahead of planned results from a Phase 3 study. The study is evaluating two treatments for wet age-related macular degeneration.
Results were scheduled to be released Monday morning. Jefferies Financial and Vail Resorts are set to report earnings after the closing bell.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment