Morning Market Setup
| S&P 500 futuresSteady near records | Nasdaq 100 futuresSoft as chips lag |
| Dow futuresFirm, record in view | Small-cap toneMixed before jobs data |
| 10-year TreasuryNear 4.61% | U.S. Dollar IndexSlightly firmer |
| WTI / Brent crudeWTI near $75; Brent below $80 | Gold / BitcoinGold firm; BTC near $64.9K |
U.S. futures are mixed to softer as chip and AI-infrastructure names keep weighing on Nasdaq sentiment, while the Dow is holding firmer near record territory. The immediate pressure is in memory and storage after Sandisk and Western Digital beat backward-looking estimates but fail to clear elevated AI-demand expectations. Oil is steady with Brent just under $80 as traders wait for concrete progress on a temporary Strait of Hormuz reopening, and the 10-year yield is hovering near 4.61% before jobless claims, productivity, and unit labor-cost data. The open is a test of whether broader earnings strength can offset another AI-capex valuation reset.
Sector & Theme Watch
Memory and storage shares are trading lower as Sandisk and Western Digital show huge AI-linked demand but guidance that does not satisfy stretched expectations. Micron is lower in sympathy, and Korean chip leaders are dragging Asia after SK Hynix and Samsung sell off. Why it matters: the market is separating actual AI revenue from how much future growth is already priced in. What to watch: whether hyperscaler commentary stabilizes memory demand into the open.
Crude is steady with Brent below $80 and WTI near $75 as investors wait for a temporary Iran-Oman shipping-route agreement through the Strait of Hormuz. The event evidence is geopolitical, while the equity read-through is supported by current crude prices rather than a confirmed stock cluster. Why it matters: lower energy-risk premia help airlines, parcel carriers, restaurants, and consumer stocks. What to watch: route terms, tanker security, and any renewed Red Sea spillover.
Global trading is split: South Korea's Kospi is down sharply as AI-chip selling hits SK Hynix and Samsung, while Europe is modestly higher with consumer and healthcare leadership. U.S. futures are taking the same shape, with Dow resilience and Nasdaq pressure. Why it matters: cross-market confirmation argues against treating the U.S. chip weakness as one isolated earnings reaction. What to watch: U.S. semiconductor breadth and whether cyclicals keep absorbing the pressure.
Premarket Trading
Stocks in Focus
Datadog reports second-quarter revenue of $1.12 billion, up 36%, and non-GAAP EPS of $0.65, while raising full-year revenue guidance to $4.45-$4.47 billion. Shares are trading about 21% lower before the open after closing Wednesday near a record. Why it matters: the reaction shows how demanding expectations have become for premium AI-software names. What to watch: management’s 8:00 a.m. call, large-customer growth, and margin commentary.
Unity reports second-quarter revenue of $546 million, up 24%, adjusted EPS of $0.28, and 63% growth in Strategic Grow revenue. Shares are trading about 15% higher as third-quarter strategic-revenue guidance reaches $540-$550 million and adjusted EBITDA guidance lands at $185-$190 million. Why it matters: Vector AI is accelerating Unity’s advertising recovery. What to watch: the 8:30 a.m. call, Vector durability, and progress toward GAAP profitability.
Sandisk reported fiscal fourth-quarter results after Wednesday's close and is trading about 9% lower this morning as its next-quarter outlook does not clear elevated AI-memory expectations. Adjusted EPS and revenue beat estimates, but guidance lands near consensus after a massive year-to-date run. Why it matters: SNDK is the cleanest morning signal that AI storage winners still need accelerating guidance. What to watch: management commentary on multiyear supply agreements, gross margin, and Investor Day setup.
Western Digital reported fiscal fourth-quarter results after Wednesday's close and is trading more than 14% lower this morning despite profit and revenue topping estimates. The market is focused on a conservative forward setup after the stock's AI-storage rally. Why it matters: WDC turns the storage selloff into a broader question about AI data-center expectations. What to watch: whether buyers defend the HDD demand story or rotate toward less crowded AI infrastructure names.
AppLovin reported after Wednesday's close and is trading about 17% lower after second-quarter revenue lands below Wall Street expectations and third-quarter guidance looks soft. Management says model-improvement rollout timing held results below its own standards. Why it matters: APP is a high-multiple AI advertising name, so small forecast misses can create outsized de-risking. What to watch: whether buyers accept management's demand commentary or keep discounting AI-model execution risk.
Peloton reports fiscal fourth-quarter revenue of $608 million and net income of $62 million, completing its first profitable fiscal year. Shares are trading about 14% lower as fiscal 2027 revenue guidance of $2.3-$2.4 billion implies a 3.9% decline at the midpoint and paid connected-fitness subscriptions keep shrinking. Why it matters: improving cash flow is colliding with a contracting subscriber base. What to watch: the 8:30 a.m. call and retention assumptions.
Alphabet is trading lower this morning after Wednesday's AI leadership shakeup raises questions about Gemini execution and the company's ability to keep top model talent. Why it matters: GOOGL is a mega-cap AI platform name, so management churn can weigh on the same Nasdaq sentiment already pressured by chip earnings. What to watch: whether buyers treat the move as a one-day reset or demand more clarity on AI product leadership.
eBay reported after Wednesday's close and is indicated slightly higher this morning after raising its 2026 outlook, beating Q2 revenue and EPS estimates, and closing the Depop acquisition. The company also rejects a reported acquisition proposal from GameStop's Ryan Cohen. Why it matters: EBAY gives traders a recommerce and consumer-discretionary read separate from mega-cap retail. What to watch: Depop integration commentary, third-quarter EPS guidance, and whether the bid broadens into Etsy.
Motorola Solutions reported after Wednesday's close and is trading about 5% higher after profit, revenue, and full-year guidance all improve. The company lifts adjusted EPS and revenue expectations while noting higher memory costs tied to AI demand. Why it matters: MSI is a defensive-technology earnings beat with public-safety demand and a direct cost read-through from the chip cycle. What to watch: backlog quality, margin resilience, and whether higher component costs pressure 2027 expectations.
Honeywell Aerospace reported standalone results after Wednesday's close and is trading more than 10% lower after cutting full-year organic growth guidance to 4%-5% from 7%-9%. Supply constraints hold back second-quarter sales and EPS misses expectations. Why it matters: HONA is a fresh aerospace pure play, so the first standalone disappointment can reset valuation quickly. What to watch: commercial aftermarket strength versus supply-chain slippage and read-through to GE Aerospace and RTX.
DoorDash reported after Wednesday's close and is moving around flat to slightly higher this morning after revenue and marketplace GOV beat estimates while profit slips on higher costs. Management's Q3 GOV outlook is slightly ahead of consensus. Why it matters: DASH is a high-volume consumer-growth name where investors are weighing international scale and automation spending against margins. What to watch: DashPass economics, Deliveroo integration, and commentary on delivery-robot investment.
SpaceX faces its first major IPO lockup expiration today after Wednesday's AI-capex-driven selloff, with roughly 911 million shares becoming eligible for sale. The stock is already below its IPO price in current lockup coverage. Why it matters: SPCX remains a retail-attention and AI-capex proxy with unusually large potential supply. What to watch: early volume, insider-sale disclosures, and whether staggered unlocks reduce pressure into the next lockup date.
Etsy announced after Wednesday's close that it is cutting about 12% of its workforce and is trading lower this morning as investors weigh stronger marketplace sales, a Depop-sale-related loss, and a new $2 billion buyback. Why it matters: ETSY is a direct read-through on recommerce discipline after eBay closes Depop. What to watch: whether investors reward the buyback or focus on active-buyer pressure and restructuring execution.
Warner Bros. Discovery reports Q2 results this morning, with revenue down 11% to $8.72 billion and profit pressured by a $1.1 billion pre-tax charge tied to amortization, content valuation, and restructuring. The Paramount deal also faces a March 2027 antitrust trial schedule. Why it matters: WBD is a large-cap media and streaming reset story. What to watch: Max trends, free cash flow, debt, and merger timing.
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