Pre-Market | Fed Rate Cut Hopes Boost Markets as AI Chip Sales to China Resume

15 Jul., DOW FUTURES down 0.04% in pre-market, NASDAQ FUTURES up 0.60% in pre-market, S&P FUTURES up 0.39% in pre-market. Federal Reserve rate cut expectations strengthen with 47% of fund managers forecasting two reductions in 2025, influencing broad monetary policy outlook. Separately, trade approvals for AI chips to resume sales to China indicate potential easing of export restrictions, addressing geopolitical and tariff-related market pressures.

In pre-market trading, Alibaba shares rose nearly 6%, driven by the company's increased investment in instant retail to secure a long-term advantage in e-commerce. Advanced Micro Devices (AMD) shares climbed over 5%, following an upgrade by HSBC, which cited the momentum in AI chip demand. Wells Fargo shares dropped over 2%, after Raymond James downgraded the stock, citing limited upside potential. Microstrategy shares fell over 2%, following the announcement of a $4.2 billion equity offering, which raised concerns about share dilution.

Longevity Health's stock surged nearly 89% in pre-market trading, driven by its strategic pivot into the plasma industry through a merger with THPlasma. The deal is expected to significantly boost revenue, with the stock premium and deal valuation reinforcing this as the key positive driver. SMX shares rose nearly 78% in pre-market trading. LQR House shares dropped over 34% in pre-market trading. Organogenesis shares fell over 30% in pre-market trading.

US Bank's fund manager survey reveals 47% expect the Federal Reserve to cut rates twice this year. Nvidia received US approval to resume H20 GPU sales in China, with CEO Jensen Huang stressing the importance of the Chinese market and engaging in talks on AI cooperation during a visit. Elon Musk's xAI signed a contract with the Pentagon, worth up to $200 million, to provide AI services. Google plans to invest $25 billion in building data centers across multiple US states.