U.S. stock futures are indicating a potential recovery as the market prepares to open, following a week marked by significant declines. The Dow Jones Industrial Average futures have risen by 0.7%, bouncing back from its worst weekly performance since October. Similarly, both the S&P 500 and Nasdaq futures are up by about 0.5%.
Market Sentiment and Upcoming Reports
Investors are eagerly anticipating upcoming earnings reports from Nvidia and January’s inflation data, which could further impact market sentiment. In the cryptocurrency market, Bitcoin has seen a slight dip, trading below $96,000, while yields on the 10-year Treasury note and gold futures have experienced minor increases.
Apple’s Major Investment
In a major development, Apple has announced a plan to invest $500 billion in the United States over the next four years. This investment will include the construction of a new factory in Texas focused on producing servers for the company’s AI platform, Apple Intelligence.
Additionally, Apple plans to double its U.S. Advanced Manufacturing Fund, which includes a significant commitment to advanced silicon production at TSMC’s Fab 21 facility in Arizona. Despite this ambitious investment, Apple shares have declined slightly by less than 1% in premarket trading.
Domino’s Pizza Performance
Domino’s Pizza is facing a decline in its stock, with shares dropping nearly 4% in premarket trading after the company reported mixed fourth-quarter results. The pizza chain posted earnings per share of $4.89 on revenue of $1.44 billion, which fell short of analysts’ expectations for an EPS of $4.87 and revenue of $1.48 billion.
The company reported a modest same-store sales increase of just 0.4% in the U.S., significantly below the 1.5% consensus forecast. However, international sales performed better with a 2.7% increase compared to the expected 1.7%.
Microsoft’s Strategic Changes
In another significant move, Microsoft has reportedly started canceling leases for AI data center capacity in the U.S., raising questions about its long-term AI computing power needs. The software giant has voided leases totaling a couple of hundred megawatts of capacity, indicating a potential reassessment of its AI infrastructure strategy.
Microsoft has committed to spending $80 billion on AI infrastructure this year and is also shifting some of its international spending back to the U.S. Despite these changes, Microsoft shares have remained relatively stable in premarket trading.
Alibaba’s Investment Plans
Alibaba Group has announced plans to invest over $52 billion in AI and cloud computing infrastructure over the next three years, highlighting its focus on AI-driven growth and ambition to strengthen its position as a leading global cloud provider. Following this announcement, U.S.-listed shares of Alibaba fell by 3% in premarket trading.
However, the company had recently seen its shares soar to a three-year high after reporting better-than-expected quarterly results, reflecting a remarkable 90% increase in value over the past year. As the market opens, investors will be closely watching these developments, particularly the implications of major investments and strategic shifts from leading tech companies.
📎 Related coverage from: investopedia.com
