Stock Market Update

Equity futures point to a higher open this morning as semiconductor stocks attract some buying after last week's selloff, while easing oil prices provide support for the broader market.

Stocks are coming off a tough week in which climbing oil and intense selling across semiconductor stocks and other mega-cap tech names pushed the major averages to a firmly lower finish.

Large chipmakers are moving higher this morning, while memory names such as Micron (MU 892.55, +43.60, +5.1%) lead the advance after Bloomberg reported that Kimi K3, the latest model from Chinese company Moonshot AI that added to last week's semiconductor volatility, requires a large amount of memory to operate. On a related note, Axios reported that the Trump administration could ban Chinese AI models.

Meanwhile, the market still largely expects negotiations to prevail between the U.S. and Iran despite the two sides exchanging fire. Crude oil is currently down $1.43 (-1.8%) to $80.35 per barrel.

Investors received just a couple of earnings reports this morning, though this week will see a considerable ramp-up in the number of companies reporting.

On the data front, the 10:00 a.m. ET release of the June leading Economic Index (Briefing.com consensus 0.1%) kicks off a light week of notable releases.

In corporate news:

• Apple (AAPL 331.50, -2.24, -0.7%) raises iPhone prices by 17% in Japan, according to Bloomberg.
• Domino's Pizza (DPZ 344.00, +21.82, +6.8%) missed EPS expectations by $0.10, beat revenue expectations, and saw U.S. same store sales growth of 0.1%.
• SpaceX (SPCX 125.83, +1.74, +1.4%) now sets a July 23 target for its next Starship launch, according to Reuters.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (-4.5%) closing at its lowest level since late April. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +2.4%, China's Shanghai Composite: +0.9%, India's Sensex: -0.6%, South Korea's Kospi: -4.5%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China Securities Regulatory Commission is reportedly aiming to stabilize the country's equity market at a time when many listed companies are announcing dividends and share buybacks.
• The Trump administration is reportedly considering banning the use of Chinese AI models in the U.S.
• The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.00% and 3.50%.
• The approval rating for Japan's Prime Minister Takaichi has fallen to a 2026 low of 53%.

In economic data: 

• New Zealand's June trade surplus NZD23 mln (expected surplus of NZD250 mln; last surplus of NZD577 mln)

Major European indices trade near their flat lines while sovereign debt is under some light pressure ahead of this week's policy meeting at the European Central Bank, which is not expected to result in a rate hike. STOXX Europe 600: UNCH, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: UNCH.

In news:

• Andy Burnham will become the U.K.'s seventh prime minister since 2016 today.
• Discount carrier Ryanair reported a drop in Q1 profit due to lower demand and higher fuel costs.

In economic data:

• Eurozone's May Construction Output 0.38% yr/yr (last 0.10%)
• Germany's June PPI -0.3% m/m (expected -0.2%; last 0.3%); 1.8% yr/yr (last 0.1%)
• U.K.'s June Rightmove House Price Index -1.0% m/m (last -0.6%); -0.4% yr/yr (last -0.5%)