Dow futures are experiencing a slight decline as traders prepare for a week filled with technology earnings reports and key economic indicators that are under close observation. The chipmaker is poised to be a focal point in the upcoming tech earnings reports, as analysts seek additional insights into the ongoing surge of interest in artificial intelligence. Meanwhile, shares of Indian IT firms have declined following the announcement of a new U.S. visa fee, while shares have decreased on reports indicating that Warren Buffett’s entity has completely divested its stake in the electric car manufacturer.
Dow futures indicated a downward trajectory on Monday, as investors prepared for the upcoming trading week, which is set to include significant earnings reports from the technology sector and important economic indicators. As of 03:01, the Dow futures contract experienced a decline of 87 points, representing a decrease of 0.2%. Similarly, futures fell by 12 points, also a reduction of 0.2%, while Nasdaq 100 futures saw a drop of 46 points, equating to a 0.2% decrease. The principal indices recorded a second consecutive day of record closing highs on Friday, as trading volume surged to its highest level since April. The benchmark S&P 500 and tech-heavy Nasdaq Composite recorded a third consecutive weekly gain, largely supported by the Federal Reserve’s decision to reduce interest rates by 25 basis points and indicate that further reductions may be forthcoming in the coming months. In individual stocks, shares of the shipping group advanced following a better-than-expected quarterly financial report and experienced an uptick after analysts at JPMorgan Chase raised their price target for the iPhone maker.
This week, focus shifts to a new round of earnings reports from the tech sector, with analysts indicating that these results could offer updated perspectives on the ongoing surge of interest in artificial intelligence. The rising prominence of AI has catalyzed a significant upswing in the overall stock markets, positioning any advancements related to the technology or the firms aiming to leverage it as a pivotal concern for investors. On Tuesday, Micron is scheduled to report following the closing bell. Sentiment has been positive regarding the chipmaker, particularly following impressive returns from peers and a series of favorable sell-side preview notes, analysts noted. Electronics component manufacturer and Apple supplier, which has been investing significantly in the belief that the data centers driving AI will generate robust demand for infrastructure services, is set to release its quarterly earnings on Thursday. The consulting giant is poised to release its results on the same day, yet analysts have raised concerns regarding the potential effects of AI on its operations.
Mega-cap U.S. technology companies exhibited stability in Frankfurt trading after the implementation of a new visa fee by President Donald Trump. On Friday, the White House revealed its intention to request that companies contribute $100,000 annually for H-1B working visas, prompting numerous businesses to counsel employees against leaving the U.S. or making immediate returns to the country. IT majors in India, including and were among several groups whose shares declined following the announcement. The visa has historically served as a mechanism for Indian tech firms to deploy personnel to projects in the U.S., where these enterprises produce a substantial share of their income. The Indian technology sector has significantly profited from the outsourcing of labor and operations from the United States to more cost-effective local enterprises. Trump’s heightened examination of this practice may signal forthcoming challenges. Last month, Trump increased tariffs on India to 50% in response to its purchases of Russian oil.
BYD experienced a decline in both Hong Kong and Chinese markets on Monday, following a report indicating that Warren Buffett’s Berkshire Hathaway has completely divested its stake in the electric vehicle company, after years of substantial profits from the investment. Shares of BYD listed in Hong Kong, via which Berkshire maintained its investment, declined by 3.5% to HK109.50. The downturn in the electric vehicle manufacturer exerted downward pressure on the Hang Seng, resulting in a decline of 1.0%. Mainland BYD shares experienced a decline of 1.0%. Reports says that Berkshire Hathaway has confirmed it has completely divested its stake in BYD. The company revealed in a filing earlier this year that the value of its investment in BYD had diminished to zero. Berkshire has commenced a gradual divestment of its stake in BYD, a position it established over ten years ago, starting in mid-2022. By the end of last year, its holdings had diminished to below 5% of the electric vehicle manufacturer’s outstanding shares.
Gold prices reached a new record high on Monday, driven by the anticipation of additional U.S. interest rate cuts following the Federal Reserve’s recent reduction in borrowing costs, which bolstered the outlook for bullion. Markets exhibited a preference for gold in anticipation of several significant U.S. economic indicators this week, notably including the Federal Reserve’s favored measure of inflation. Several Federal Reserve policymakers are scheduled to deliver remarks as well. Decreased interest rates are favorable for non-yielding assets like gold, as they reduce the opportunity cost associated with investing in this sector. Broader metal prices have also increased following the Fed’s cut. Spot gold increased by 0.9% to $3,715.50 per ounce, whereas gold futures advanced by 1.2% to $3,750.20 per ounce as of 03:32.