Most Important News

1. Iran Designates Two Lanes for Strait of Hormuz Transits
2. AI Compute Demand Drives Semiconductor Boom
3. ARM: Data Center to Become Largest Business, Eyes CPU Market Lead
4. Coherent Orders Booked Through 2028, 1.6T Modules Ramp Fast

Futures linked to the S&P 500 edged higher early Thursday after the index touched new highs, buoyed by hopes that the U.S. and Iran were closing in on an agreement to end the war.

As of 03:00 PM Riyadh Time, S&P 500 futures rose 0.08%, while Nasdaq 100 futures hovered around the flatline. Futures tied to the Dow Jones Industrial Average added 64 points, or 0.13%.

Shares of DoorDash(DASH.US)  popped 10% after the food delivery giant issued rosy guidance for orders in its second quarter. Meanwhile, Fortinet, Inc.(FTNT.US)  climbed 16% after lifting its full-year billings guidance.

As of 03:05 PM Riyadh Time, top pre-market movements are as follows:

Iran Designates Two Lanes for Strait of Hormuz Transits

Iran's Islamic Revolutionary Guard Corps Navy has designated two specific shipping lanes for vessels to pass through the Strait of Hormuz, state media reported. However, ships still require Iranian permission to cross the strategic waterway, maintaining tight control amid ongoing regional tensions.

April Payrolls Forecast Slumps to 65K, Rate Cut Bets Rise

Economists expect April nonfarm payrolls to add just 65,000 jobs, a sharp drop from March's 178,000, signaling continued cooling in the U.S. labor market. A weak or in-line reading could pave the way for a Fed rate cut as soon as June. Fed funds futures currently price a near 70% probability of a 25-basis-point cut in June, supporting equity valuations.

AI Compute Demand Drives Semiconductor Boom, 2026 Growth Seen Above 25%

Global AI infrastructure buildout continues to accelerate, with demand for GPUs, memory chips, and optical modules persistently beating expectations. Multiple research firms have raised 2026 global semiconductor growth forecasts to over 25%, with AI-related chips expected to surge more than 80%. The sector's strong outlook reflects sustained capital spending by hyperscalers.

Morgan Stanley Sees Gold at $5,200 by Year-End, One Fed Cut

Morgan Stanley maintains a bullish gold outlook, forecasting prices to reach $5,200 per ounce by year-end, implying about 10% upside from current levels near $4,700. The bank expects at least one Fed rate cut this year, which would further support gold amid ongoing geopolitical and inflationary risks. The metal is currently testing key resistance.

Shell Q1 Profit Beats on Strong Trading, War-Driven Volatility

Shell Plc Sponsored ADR(SHEL.US)  reported Q1 adjusted net profit of $6.92 billion, up from $5.58 billion a year earlier and above the $6.36 billion consensus, driven by strong trading results amid oil and gas price volatility linked to the Iran war. Adjusted EBITDA rose to $17.7 billion from $15.3 billion. Shares edged down 2% in pre-market trading.

ARM: Data Center to Become Largest Business, Eyes CPU Market Lead

Arm Holdings(ARM.US)  reported record Q4 FY2026 revenue of $1.49 billion, up 20% year-over-year, with full-year revenue up 23% to $4.92 billion—the third straight year of over 20% growth. CEO Rene Haas said demand for the new AGI CPU has doubled in six weeks to over $2 billion, well above the $1 billion supply target. He expects data center to become ARM's largest segment and predicts Arm will hold the biggest share of the CPU market by 2030.

Coherent Orders Booked Through 2028, 1.6T Modules Ramp Fast

Coherent Corp.(COHR.US)  CEO Jim Anderson reported "step-function" order growth with record backlogs extending into 2028. The company is accelerating its 6-inch indium phosphide capacity expansion, achieving a doubling one quarter ahead of schedule. 1.6T optical modules are also ramping at a "stunning pace," driven by surging demand for AI interconnect infrastructure.

McDonald's Q1 Tops Estimates, Shares Rise 3% Pre-Market

McDonald's Corporation(MCD.US) 's reported Q1 revenue of $6.52 billion, above the $6.47 billion consensus, and adjusted EPS of $2.83, beating estimates of $2.74. The better-than-expected results lifted shares nearly 3% in pre-market trading.

SanDisk's 356% Surge: AI-Driven Transformation or Cycle Peak?

Sandisk Corporation(SNDK.US)  has surged over 356% year-to-date, fueled by a narrative that long-term $42 billion hyperscale cloud contracts have "de-cycled" NAND. Analyst Louis Gerard questions whether the rally reflects a permanent business shift or marks the most extreme cyclical peak in flash history. The debate underscores broader uncertainty about AI's lasting impact on memory valuations.

Albemarle Jumps 7% on Strong Q1, Lithium Sales Surge 70%

Albemarle Corporation(ALB.US) shares rose over 7% pre-market after Q1 net sales climbed 32.7% to $1.43 billion, beating estimates, with adjusted EBITDA up 148.5% to $660 million. Its lithium business saw net sales surge 70% to $891 million, driven by 51% price and 14% volume growth. EBITDA from that segment jumped 196% to $551 million. The results underscore robust demand for battery materials amid the EV and energy storage transition.