Why Are Nasdaq and S&P 500 Futures Weak Pre-Market? Nvidia, Apple, Intel, CRWD and Other Stocks in Focus

TradingKey - In pre-market trading on August 31 Eastern Time, U.S. stock index futures showed weak performance. As of press time, Nasdaq index futures dropped 0.21%, while S&P 500 futures and Dow futures fell by approximately 0.26% and 0.23%, respectively.

Geopolitical conflicts drove up oil prices, which, combined with expectations of Federal Reserve rate hikes pushing U.S. Treasury yields higher, created dual pressures that weighed on equity index futures in pre-market trading. Despite escalating geopolitical risks, U.S. stocks remain on track to finish August higher, with the Dow up about 2.1% for the month, the S&P 500 up about 3%, and the Nasdaq up about 4%.

[Source: CME Group]

Oil Tops $90 as Geopolitical Risks Heat Up Again

Over the weekend, the U.S. military launched strikes against two Iranian rocket launchers on Larak Island in the Strait of Hormuz, marking the first time since July that the U.S. has publicly acknowledged using force against Iranian targets. U.S. Central Command stated that the action was taken after discovering that Iran's Islamic Revolutionary Guard Corps was preparing to launch mine-laden rockets into the Strait of Hormuz. Iran subsequently claimed to have launched retaliatory attacks on U.S. military bases in Jordan.

According to reports, U.S. Treasury Secretary Scott Bessent stated that the U.S. plans to unveil a new round of secondary sanctions against Iran on a weekly basis, beginning with banks linked to the Iranian regime. Meanwhile, U.S. President Trump announced an agreement under which the U.S. will gain majority control over more than 65 billion barrels of Venezuela's proven oil reserves.

Driven by these combined developments, Brent crude oil prices breached $91 per barrel.

[Source: TradingView]

Meanwhile, Federal Reserve Chairman Kevin Warsh delivered a speech at the Jackson Hole annual central banking symposium last Friday, emphasizing that inflation "has not yet slowed materially." Market bets on a September rate hike rose from 35% to 57%, and the 10-year U.S. Treasury yield climbed to 4.73%. Geopolitical risks combined with tightening expectations have formed the two main drivers dampening risk appetite.

Nvidia Leads Gains as Apple Officially Changes Leadership Tomorrow

In tech stocks, Nvidia (NVDA) delivered a stellar earnings report last week, with its stock surging 8.7% the day after the release. As of writing, Nvidia has gained over 8% in August. Over the weekend, CEO Jensen Huang outlined the company's latest investment strategy, stating that AI is reshaping the global manufacturing landscape and driving capacity and re-industrialization back to the U.S.

However, shortages of key components such as HBM memory persist. According to South Korean media reports, Nvidia is seeking to diversify its supply chain through initiatives such as custom development of Samsung's 8-layer HBM4E.

Apple (AAPL) will officially undergo its first CEO transition in nearly 15 years tomorrow, with Senior Vice President of Hardware Engineering John Ternus succeeding Tim Cook as CEO, while Cook transitions to Executive Chairman of the Board.

The first test for Ternus will be the September product launches, while the market is also closely watching whether he can accelerate the push to catch up with rivals in the AI application ecosystem. Apple's footprint in generative AI lags noticeably behind Microsoft (MSFT), Google (GOOGL), and OpenAI, with the rollout of Apple Intelligence moving at a slow pace and integration talks with Google's Gemini still ongoing.

The memory chip sector is also in focus. According to South Korean media, SK Hynix (SKHY) is considering outsourcing part of its HBM4E base die manufacturing to Intel (INTC) Foundry to reduce reliance on TSMC. However, SK Hynix subsequently responded that parts of the report were inaccurate, and the potential collaboration should currently be viewed as an unconfirmed rumor.

Boosted by the news, Intel rose over 2% in pre-market trading. As of writing, its gain has trimmed to around 0.2%.

CrowdStrike (CRWD) kicks off its annual flagship conference, Fal.Con 2026, today, with the market watching how it will showcase product enhancements. The stock surged over 20% in a single day following its earnings release last week.