The S&P 500 futures are down this morning following a sharp pullback in the major indexes, which ended a lengthy winning streak. This decline was driven by a rise in oil prices, which increased by about 2% on Wednesday, and a spike in U.S. Treasury yields, with the 10-year note nearing 4.5%. Concerns about valuations in private equity stocks have also weighed on the market.
Notably, chipmakers are leading the downturn, with shares of Micron and Marvell dropping over 6% before the market opened. In geopolitical news, Israeli Prime Minister Benjamin Netanyahu discussed tactical disagreements with U.S. President Donald Trump regarding the Iran war, while a ceasefire was announced between Israel and Lebanon.
On the corporate front, SpaceX has set its IPO price at $135 per share, aiming to raise $75 billion, which would position it as the seventh-largest U.S. company by market cap. However, investors should be cautious as stocks often decline in the first year post-IPO.
Broadcom's shares fell 15% after missing revenue expectations, despite a 48% year-over-year revenue increase, indicating strong demand for its AI chips. CrowdStrike also faced a 10% drop despite beating earnings expectations and announcing a stock split.
Lastly, as the World Cup approaches, public health officials are monitoring potential infectious disease outbreaks, particularly Ebola, although the risk of widespread transmission is considered low