【US Pre-Market】Memory Chip Sector Drops Across the Board, Micron Falls Over 3%, SanDisk Drops About 5%, Western Digital Falls Nearly 6%

TradingKey - On Tuesday, October 13, Eastern Time, major U.S. stock index futures were mixed in pre-market trading. UnitedHealth's better-than-expected earnings boosted Dow futures, while a continued sell-off in chip and memory stocks dragged down Nasdaq futures; meanwhile, investors awaited earnings reports from major Wall Street banks and upcoming U.S. inflation data.

As of press time, Dow futures rose 0.78%, S&P 500 futures fell 0.05%, and Nasdaq 100 futures slipped 0.7%.

Source: Investing

In commodities, gold (XAUUSD) rose about 0.3%, trading near $4,185. The U.S. Dollar Index fell about 0.3% to 102.29, providing support for gold prices. International oil prices pulled back, with WTI (USOIL) crude falling about 1.1% to near $92.1, and Brent (UKOIL) crude down about 1.3% to near $104.8. Expectations of increased Russian diesel supply partially alleviated market concerns over supply disruptions in the Gulf region.

In cryptocurrencies, Bitcoin (BTC) rose about 2%, trading near $83,500.

Market Action

UnitedHealth (UNH) rose about 1.4% in pre-market trading, after earlier surging more than 4%. The company reported third-quarter adjusted earnings per share of $4.69, beating market expectations of $4.14, on revenue of $112.69 billion. UnitedHealth also raised its full-year adjusted EPS guidance to at least $20.50, up from its previous forecast range of $19.50 to $20.00.

Memory stocks fell across the board in pre-market trading. Micron Technology (MU) fell over 3%, SanDisk (SNDK) dropped about 5%, Western Digital (WDC) slid nearly 6%, and Seagate Technology (STX) dropped over 5%. ChangXin Memory Technologies announced progress on a new DRAM architecture and plans to launch server DDR5 products by the end of the year, raising market concerns over memory chip competition and future pricing pressure.

AI chip stocks remained under pressure in pre-market trading. Nvidia (NVDA) fell about 1%, while AMD (AMD) dropped over 1%. Against the backdrop of a broader pullback in global semiconductor stocks, investors continued to assess the impact of AI data center capital expenditures, growing chip supply, and competition from domestic Chinese manufacturers.

Adobe (ADBE) fell about 1.4% in pre-market trading. HSBC downgraded Adobe to "Hold" and lowered its price target from $310 to $267, following an earlier downgrade by Wells Fargo to "Underweight". Analysts are primarily focused on the impact of generative AI competition on Adobe's growth rate and its share of software budgets.

Market News

U.S. small business confidence fell slightly. Data from the National Federation of Independent Business (NFIB) showed that the Small Business Optimism Index dropped from 98.7 in August to 97.9 in September, slightly below the long-term average of 98.0. The Uncertainty Index rose 1 point to 90, with labor quality and availability remaining the primary issues facing businesses.

Johnson & Johnson (JNJ) reported third-quarter results. Company sales grew 5.9% year-over-year to $25.4 billion, with adjusted earnings per share of $2.59, and it raised the midpoint of its 2026 sales guidance to $101.2 billion and the midpoint of its adjusted EPS guidance to $11.10.

Russia expects diesel exports could exceed the volume of the previously announced deal with the U.S. The Trump administration temporarily lifted certain sanctions on Russian fuel, with expectations of additional supply offsetting supply risks caused by attacks on facilities in Saudi Arabia and the Gulf region.

The Houthis said Saudi airstrikes hit several areas under their control in Yemen, including Kamaran Island, Al Qanawis, and Al Jawf Governorate. Saudi Arabia has not yet responded to the claims.

Key Data and Events Preview

At 10:00 ET on October 13, the U.S. will release September existing home sales data.

At 13:00 ET on October 13, Richmond Fed President Barkin will deliver a speech.

At 14:00 ET on October 13, the U.S. will release the September federal budget.

At 16:00 ET on October 13, Boston Fed President Collins will deliver a speech.