Stock futures are edging higher after major indexes snapped a three-day streak of record highs; Micron Technology (MU) shares are in focus after the chipmaker posted record revenue on strong AI demand; Stable coin issuer Tether is reportedly seeking funding that would value the company at $500 billion; shares of Chinese e-commerce giant Alibaba (BABA) are surging on its AI spending plans; and Lithium Americas (LAC) stock is soaring on a report that the U.S. government seeks to own a stake in the mining firm. Here's what investors need to know today.
1. Stock Futures Point to Slightly Higher Open
Stock futures are higher this morning after the market lost ground yesterday following comments from Fed Chair Jerome Powell, who said the central bank faces challenges in determining interest rates as the labor market weakens while inflation remains elevated. Futures associated with the benchmark S&P 500, the tech-focused Nasdaq and the Dow Jones Industrial Average are pointing to a slightly higher opens for each of the major indexes. Gold futures, which have hit a series of record highs recently, ticked lower to around $3,800 an ounce. The yield on the 10-year Treasury note, which affects a wide range of consumer loans, was little changed at 4.13%. Bitcoin (BTCUSD) was at $113,100 recently, up from an overnight low of around $111,000.
2. Micron Reports Strong Results, Issues Rosy Outlook Amid Surging AI Demand
Memory chip maker Micron Technology (MU) posted record quarterly sales and delivered an optimistic outlook on surging demand for AI hardware. Micron reported adjusted earnings per share of $3.03 on revenue that jumped 46% year-over-year to $11.32 billion in its fiscal fourth quarter, both above estimates compiled by Visible Alpha. The partner to Nvidia (NVDA) and Advanced Micro Devices (AMD) said it expects adjusted earnings per share of $3.41 to $3.71 on revenue of $12.20 billion to $12.80 billion in the fiscal first quarter, also ahead of expectations. Shares of Micron, which have nearly doubled year-to-date, were down 1% in recent premarket trading.
3. Stable Coin Issuer Tether Seeks $500 Billion Valuation in Fundraising Deal
Stable coin issuer Tether is reportedly seeking to raise as much as $20 billion in private investment in a deal that could put the cryptocurrency firm’s value on par with ChatGPT-maker OpenAI and Elon Musk’s SpaceX. Bloomberg reported that the El Salvador-based company is looking to raise between $15 billion and $20 billion in exchange for a 3% stake. The deal could see the company valued at $500 billion. In a social media post, CEO Paolo Ardoino said the funding would help scale by “several orders of magnitude” the firm’s business lines, which also included AI, commodity trading, energy, communications and media.
Shares of Chinese e-commerce giant Alibaba (BABA) surged after a report that the firm plans to boost its AI spending. Bloomberg reported that CEO Eddie Wu said the company would ramp up AI spending beyond the original plan announced in February of around $53 billion, as overall spending on the technology worldwide is expected to reach $4 trillion over the next five years. The company will invest in the development of AI models and infrastructure, including plans to build data centers in Brazil, France and the Netherlands, the report said. U.S.-traded shares of Alibaba were up more than 8% ahead of the opening bell.
5. Lithium Americas Stock Soars on Report U.S. Government Will Take Stake in Company
Shares of Lithium Americas (LAC) soared in premarket trading on a report that the Trump administration may seek a stake in the mining company as part of a government loan deal. Reuters reported that the government may ask for a 10% stake in Lithium Americas as a condition in renegotiation talks over a $2.26 billion Energy Department loan for its Thacker Pass lithium project with General Motors (GM). Lithium is used to make electric vehicle batteries and other key electronic equipment. The move would come after the Trump administration took a similar stake in chipmaker Intel (INTC). Shares of Lithium Americas were up 70% in recent premarket trading, while GM gained more than 2%.
