Pre-Market | Federal Reserve Rate Cut Expectations Boost Markets Alibaba Cloud Growth Drives Stock Surge

29 Aug., DOW FUTURES down 0.31% in pre-market, NASDAQ FUTURES down 0.48% in pre-market, S&P FUTURES down 0.28% in pre-market. Federal Reserve Governor Waller reaffirmed his support for imminent rate cuts, citing lower inflation pressure. The latest CME data indicates an 86.2% probability of a 25-basis-point cut in September, boosting investor confidence. Concurrently, US weekly jobless claims fell to 229,000, below expectations, signaling labor market resilience amid slowing economic indicators.

In pre-market trading, Alibaba Group Holding Ltd. (BABA) saw a rise of 2.70%, driven by strong AI-driven cloud business growth and momentum in fast delivery services, which fueled investor confidence. British American Tobacco PLC (BTI) also rose, up 0.50%, as the company generated strong free cash flow and funded share buybacks, boosting investor confidence. Meanwhile, Caterpillar Inc. (CAT) dropped 2.87% due to higher estimated tariff impact on its financial outlook. Banco Santander SA (SAN) also saw a decline, down 2.38%, after its rating was downgraded from strong-buy to hold by Kepler Capital Markets.

In pre-market trading, Movano Inc. surged over 61%, following the approval of a Nasdaq listing extension. SMX rose nearly 42%, driven by a strategic partnership with A*STAR for the development of a plastic circularity platform. CaliberCos, however, saw a significant drop of nearly 29%, due to a reported decline in sales. TNF Pharmaceuticals also experienced a decline of nearly 21%, as the company announced a reverse stock split as part of its strategic financial restructuring.

Federal Reserve rate cut expectations for September strengthened, with high probabilities leading to increased gold demand and market speculation. Alibaba reported Q1 revenue growth of 10% excluding sold businesses, net profit up 76%, with cloud revenue rising 26% and AI products achieving triple-digit growth for eight straight quarters, alongside an $815 million share repurchase and expanded retail user activity. Meta partnered with Reliance Industries to provide open-source AI models for Indian businesses. Multiple Chinese provinces advanced brain-computer interface industry plans to drive innovation and development support.