【US Pre-Market】Brent Crude Nears $115, Chip Stocks Rebound, SK Hynix Rises Over 4%

TradingKey - On October 23, Eastern Time, the three major U.S. stock index futures fell in unison in pre-market trading. As of press time, Dow futures dropped 0.66%, S&P 500 futures fell 0.29%, and Nasdaq 100 futures slipped 0.14%.

[Source: Investing]

In commodities, oil prices continued to move higher, with WTI crude futures (USOIL) rising to around $101/barrel, and Brent crude futures (UKOIL) climbing to around $114.50/barrel, as tensions in the Middle East heightened market concerns over energy supply disruptions.

As of press time, gold (XAUUSD) stood at $4,024.17/oz, and silver (XAGUSD) was at $53.93/oz. Bitcoin (BTCUSD) traded at $81,577.

Market Action

Intel (INTC) surged over 3% in pre-market trading at one point. The U.S. Federal Communications Commission (FCC) granted Intel a one-year waiver on October 22, allowing it to continue operating and maintaining specific automated guided vehicles (AGVs) to avoid disruptions to its U.S. semiconductor manufacturing operations. The decision helps ensure the continuous operation of the relevant equipment, though whether the stock price rise was directly driven by this still needs to be evaluated alongside other market factors.

SK Hynix (SKHY) rose over 4% in U.S. pre-market trading. The company announced it has halted evaluating a U.S. IPO and pre-IPO financing options for its subsidiary Solidigm, citing changes in capital market conditions and stock price trends. SK Hynix stated that it will continue to explore alternative financing options to support Solidigm's expansion of production facilities in the U.S. This adjustment does not mean the expansion plan has been canceled; the focus going forward is whether alternative financing options can meet its funding needs.

RingCentral (RNG) jumped over 15% in pre-market trading at one point. The company's third-quarter revenue increased 5.9% year-over-year to $676 million, Non-GAAP operating margin rose to 24.7%, and free cash flow reached $157 million, all demonstrating improved profitability. RingCentral also raised its full-year guidance for revenue, operating margin, and free cash flow. Annual recurring revenue for the company's paid AI products doubled year-over-year, while the commercialization progress of its AI communications services also drew market attention.

Aardvark Therapeutics (AARD) rose over 20% in pre-market trading at one point. The U.S. Food and Drug Administration (FDA) lifted the clinical hold on its drug candidate ARD-101, which is primarily intended to treat hyperphagia associated with Prader-Willi syndrome. Previously, the company paused the relevant trials after ECG changes were detected during safety monitoring. The FDA's removal of the hold creates conditions for further R&D, but the company still needs to consult further with regulators on the Phase 3 trial design, leaving uncertainty regarding the drug's eventual approval and commercialization.

Market News

Moderna Shares Plunge as Phase 3 Cancer Vaccine Data Released.

Moderna (MRNA) and Merck (MRK)'s jointly developed personalized melanoma mRNA vaccine released Phase 3 clinical data, sending Moderna shares down 17.57% at the close on October 22.

Trial data showed that the vaccine Intismeran autogene combined with Keytruda reduced the risk of recurrence or death by 42% and the risk of distant metastasis or death by 38%. Although the trial met its primary endpoint, the detailed results fell short of some investors' prior expectations, prompting the stock to pull back after a previous sharp rally. Going forward, attention should focus on regulatory approval progress and commercialization plans.

SpaceX in Talks to Acquire 80,000 Cellular Sites to Advance U.S. Wireless Network Expansion.

SpaceX is reportedly in talks with communications infrastructure companies to acquire at least 80,000 cellular sites in the U.S. to advance its nationwide wireless network buildout. Crown Castle (CCI) is among the potential negotiating partners.

If an agreement is reached, SpaceX will have the opportunity to expand its terrestrial network coverage and further challenge incumbent wireless carriers. However, negotiations are not yet finalized, and subsequent progress will depend on partnership agreements, spectrum resources, regulatory approvals, and buildout costs.

Western Digital Beats Earnings Expectations, Hikes Dividend, and Remains Upbeat on Future Demand.

Western Digital (WDC) reported a 55% year-over-year increase in revenue to $4.381 billion for the first quarter of fiscal 2027, with non-GAAP EPS of $4.64, both exceeding market expectations. The company also raised its quarterly cash dividend by 17% to $0.175 per share.

Looking ahead to the second fiscal quarter, the company expects revenue midpoint to be approximately $5.1 billion, representing year-over-year growth of 66% to 72%. The strong results reflect improvements in storage demand and product pricing, but attention will still need to be paid to cloud computing and AI data center demand, product pricing, and margin fluctuations going forward.

OpenAI Reportedly in Talks for New Funding Round, Lowering Target Pre-Money Valuation to $1.25 Trillion.

OpenAI is reportedly negotiating a new funding round of up to approximately $300 billion, targeting a pre-money valuation of about $1.25 trillion, down from the previously reported $1.4 trillion. Terms are still being negotiated, and the final valuation and funding size have not been finalized.

The valuation adjustment comes as tech stocks face pressure and investors reassess returns on AI infrastructure spending. Moving forward, key aspects to watch include whether the financing can be completed as planned and whether massive computing power investments can consistently translate into revenue and cash flow.

Apple's First Foldable iPhone Duo Goes on Sale as Market Focuses on Actual Sales.

Apple's (AAPL) first foldable smartphone, the iPhone Duo, officially went on sale on October 23, with a starting price of $1,999 in the U.S.

Estimated delivery times for some pre-orders have been pushed to early 2027, though delivery delays may also be affected by initial production capacity constraints. Investors should focus on actual sales volume, supply chain improvements, and consumer acceptance of high-priced foldables to gauge whether the new product can drive iPhone revenue growth.

Micron Launches Global Quarterly Profit-Sharing Plan Amid Ongoing Labor Dispute at Taoyuan Plant.

Micron Technology (MU) announced a quarterly profit-sharing plan for eligible global employees starting in fiscal year 2027, with bonuses split 50-50 between cash and stock.

However, the union at the Taoyuan plant believes the company has not yet clarified the profit allocation ratio. On October 22, 11 union officers participated in a 24-hour symbolic strike; a day earlier, Micron signed a labor agreement with the union at its Taichung plant.

The key focus going forward will be whether Micron can reach a consensus with the Taoyuan plant union on profit distribution rules and whether the labor dispute will affect production schedules.

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