Pre-Market | US Stocks Rise on Fed Rate Hopes, Mitsubishi UFJ Financial Group Shares Surge

12 Aug., DOW FUTURES up 0.03% in pre-market, NASDAQ FUTURES up 0.04% in pre-market, S&P FUTURES up 0.02% in pre-market. U.S. stock market is influenced by U.S. monetary policy, with weak labor market data leading to lowered forecasts for U.S. Treasury yields, with two-year and 10-year rates revised down to 3.5% and 4.25% respectively. The Federal Reserve is expected to hold interest rates steady until late 2025, though softer economic indicators heighten risks of potential rate cuts.

Mitsubishi UFJ Financial Group saw a 2.84% rise in pre-market trading, driven by an improved earnings outlook with a return on equity reaching 10% and dividend growth boosting fair value. Sumitomo Mitsui Financial Group also experienced a 1.60% increase in pre-market trading, as the company plans to acquire a 20% stake in Yes Bank. Meanwhile, SAP shares dropped 3.86% in pre-market trading due to concerns over AI-powered software disruption impacting the industry. Coca-Cola FEMSA shares fell 3.56% in pre-market trading, as earnings growth lags behind shareholder returns.

In pre-market trading, WideOpenWest surged nearly 48%, driven by its announcement to be acquired and taken private. Hanesbrands also saw a significant rise, up over 43%, following its decision to raise its full-year outlook for sales and profit. Meanwhile, Myomo experienced a sharp decline, dropping over 32%, due to reduced revenue guidance and a larger-than-anticipated loss. BigBear.ai Holdings also faced a substantial drop, falling over 31%, after reporting significant earnings and revenue misses along with lowered annual revenue guidance.

Trump suggested possible permission for Nvidia to sell tailored AI chips to China; Nvidia responded to a new US-imposed 15% revenue transaction license fee on such exports, affirming commitment to regulatory compliance while serving global clients. An Australian court ruled that Apple and Google engaged in anticompetitive practices via their app stores, deeming their market dominance misuse illegal. Bank of America revised down US Treasury yield forecasts, citing economic data risks and expecting the Federal Reserve to hold interest rates unchanged until the second half of next year.