Pre-Market | US Inflation Risks Rise as Trump Pressures Fed, Alibaba AI Spending Boosts Stock

24 Sep., Concerns arise over U.S. inflation risks as presidential pressure threatens Federal Reserve independence and pushes for rate cuts, though bond markets show no significant reaction. Meanwhile, potential Bank of Japan interest rate hikes in October could be driven by strong economic data, signaling global monetary policy shifts. In pre-market trading, DOW FUTURES rose 0.16%, NASDAQ FUTURES increased 0.29%, and S&P FUTURES gained 0.21%.

In pre-market trading, Alibaba shares surged by 9.33% following the company's announcement to increase its spending on artificial intelligence. This strategic move has sparked investor optimism, driving the stock higher. Meanwhile, PDD Holdings saw a modest rise of 2.16% as investors reacted positively to the company's increased spending to boost revenue. On the other hand, MercadoLibre shares dropped by 1.87% after an analyst downgraded the stock from a buy to a hold rating. Sony Group shares also declined, falling by 1.61%.

In pre-market trading, SHF Holdings surged over 150%, driven by strong quarterly earnings that exceeded market expectations. Lithium rose nearly 72%. Aytu BioPharma dropped over 16%. Oriental Rise, the most shorted stock on US markets, fell nearly 16%.

US President Donald Trump's unprecedented interference with the Federal Reserve, including calls to lower rates and potential actions against officials, sparked inflation concerns among experts, yet bond markets showed muted reactions. Former Bank of Japan Policy Board member Seiji Adachi indicated the BOJ might raise interest rates as soon as October, driven by strong GDP data and upward revisions in economic forecasts. Alibaba partnered with Nvidia on Physical AI initiatives, encompassing data synthesis and model training, while also securing new patents in chip technology; concurrently, Ark Investment Management purchased Alibaba ADRs, resuming its investments in this sector after prior holdings.