US Pre-Market: Fed Decision Looms; Nasdaq Futures Lead, AI Chip Stocks Rebound, SpaceX Rises Over 4%

TradingKey - On Wednesday, US Eastern Time, the three major US stock index futures showed a mixed performance pre-market, with the overall market maintaining a cautious but firm upward trend. Investors are awaiting the Federal Reserve's June interest rate decision, as well as the debut press conference of the new Fed Chairman Kevin Warsh. The previous interim US-Iran agreement had driven oil prices down sharply, easing market worries over energy inflation, but the market continues to evaluate the execution details of the agreement and whether the Fed will signal a more hawkish interest rate path.

As of press time, Dow futures fell 0.01%, S&P 500 futures rose 0.12%, and Nasdaq 100 futures rose 0.55%.

US Stock Index Futures Performance, Source: Investing

In commodities, Brent crude broke below the $80 mark, while WTI crude ( USOIL) dropped to around $76, both hovering near three-month lows. The market expects that after the signing of the US-Iran agreement, Iranian crude supply is expected to gradually return to the global market, further easing energy supply pressures. Gold ( XAUUSD) prices remained largely steady, trading at around $4,326, with investors staying on the sidelines ahead of the Fed's decision.

In cryptocurrencies, Bitcoin ( BTC) maintained a downward trend during the day, dipping below $65,000 intraday with a decline of 1.53%; Ethereum ( ETH) fell 1.52%.

Unusual Market Movements

AI chip stocks rebounded across the board pre-market. Broadcom ( AVGO) rose about 1.8%, Micron Technology ( MU) gained nearly 4%, AMD ( AMD) rose about 2.5%, Intel ( INTC) rose over 3%. The semiconductor sector had previously undergone a correction, but capital flowed back into AI hardware today, indicating that the market is still trading around the core themes of AI computing power, storage, and data center expansion.

SpaceX ( SPCX) rose over 4% pre-market. The stock has continued to attract capital since its listing, and its market capitalization surpassed Amazon ( AMZN) on Tuesday, making it the world's fifth-largest company by market value. Although its pre-market gains today narrowed compared to previous trading sessions, SpaceX remains one of the most closely watched newly listed tech stocks in the U.S. market. The market continues to trade on its space economy, satellite internet, AI infrastructure, and Elon Musk concept premium.

Energy stocks faced pressure pre-market. As Brent crude fell below $80, Exxon Mobil ( XOM ), Chevron ( CVX ), Occidental Petroleum ( OXY) and other oil and gas stocks faced pressure. The U.S.-Iran agreement improved expectations for Middle East crude supply, and the market's risk premium for supply disruptions in the Strait of Hormuz continued to recede, leaving upstream oil and gas stocks still dragged down by the downward trend in oil prices in the short term.

La-Z-Boy ( LZB) surged 16% pre-market. The company's fourth-quarter sales and earnings both beat market expectations, driving its stock price significantly higher pre-market. Amid divergence in the U.S. consumer sector, La-Z-Boy's better-than-expected performance provided a sentiment boost to the furniture and home furnishings consumer chain.

Market Headlines

The Federal Reserve is set to announce its June interest rate decision, marking Kevin Warsh's first press conference as Chairman. The market widely expects the Fed to keep the interest rate range unchanged at 3.50% to 3.75%. Investors will focus closely on the Fed's latest economic projections, the dot plot, and Warsh's stance on inflation, employment, and the future path of interest rates. If Warsh downplays rate-cut expectations, tech stocks and high-valuation growth stocks may come under pressure; if his rhetoric is relatively dovish, the Nasdaq and the AI theme are expected to continue to find support.

Details of the U.S.-Iran agreement continue to influence oil prices. Market reports indicate that the U.S. may ease restrictions on Iranian crude oil exports under the framework of the agreement, with Iranian crude supply expected to gradually return to the market. Impacted by this, Brent crude fell below $80, and global bond yields declined in tandem. While the decline in oil prices has eased inflation concerns, the agreement has not been fully disclosed, and a time lag remains before shipping through the Strait of Hormuz is fully restored.

Iranian tankers have begun to break through the blockade, improving global crude oil supply expectations. Shipping data shows that at least three Iranian tankers have passed through blockaded zones this week and headed toward Asian markets, carrying a combined total of millions of barrels of crude. The news has reinforced market expectations for a recovery in Middle East crude supply, further depressing international oil prices. If more Iranian crude enters the market in the future, energy prices may continue to exert downward pressure on inflation expectations.

UK CPI in May remained at 2.8%, as the divergence in global central bank policies continues to play out. With UK inflation holding near a 13-month low, the market expects the Bank of England to keep interest rates unchanged in the near term. Meanwhile, the Bank of Japan had previously raised interest rates to a 31-year high, showing that major global central banks are still pursuing different policy paths based on domestic inflation and exchange rate pressures. Global interest rate divergence may continue to influence the U.S. dollar, Treasury yields, and cross-market capital flows.

Key Data and Events Preview

At 8:30 AM ET on June 17, the U.S. will release retail sales data for May.

At 10:00 AM ET on June 17, the U.S. will release pending home sales data for May.

At 10:00 AM ET on June 17, the U.S. will release business inventories data for April.

At 2:00 PM ET on June 17, the Federal Reserve will announce its June interest rate decision.

At 2:30 PM ET on June 17, Federal Reserve Chair Kevin Warsh will hold a press conference.