Most Important News

1. Trump Threatens Strike on Iran's "Kuh-e Kolang Gaz La" Site;
2. Oil Prices Surge; US Chip Stocks Plunge Pre-Market;
3. Gold Prices Surge Amid Market Optimism;
4. SpaceX Short Interest Rises to 32%; Musk Responds;

Stock futures fell on Wednesday, pressured by a rise in oil prices, as investors looked ahead to another busy day of corporate earnings.

As of 03:49 PM Riyadh Time, futures tied to the Dow Jones Industrial Average dipped 87 points, or 0.17%. S&P 500 futures and Nasdaq-100 futures were down 0.38% and 1.02%, respectively.

Brent crude futures rose 3% to trade above $93 per barrel, hitting their highest levels in over a month and briefly topping $95. West Texas Intermediate futures climbed 2% to above $86 per barrel.

Oil prices traded higher following the 11th straight round of US strikes against Iran, with Secretary of State Marco Rubio saying Iran is “not serious about talks.”

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As of 03:25 PM Riyadh Time, top pre-market movements are as follows:

Gainers

Trump Threatens Strike on Iran's "Kuh-e Kolang Gaz La" Site

Trump stated on the 21st that US forces would soon launch a "very fierce" attack on Iran’s "Kuh-e Kolang Gaz La," claiming Iran was powerless to prevent it. Iran's military warned such actions could spark a regional war, vowing retaliation against US and allied interests. Iran’s Foreign Ministry dismissed US claims, asserting the site has no nuclear activities and labeling the focus as a pretext for aggression.

Rubio Open to Diplomatic Solution with Iran

US Secretary of State Marco Rubio expressed willingness to resolve issues with Iran through negotiations but criticized Tehran's lack of sincerity. The escalating conflict has disrupted critical global energy routes. Speaking at a Southeast Asian foreign ministers' meeting, Rubio noted recent events, including three oil tankers turning back from the Red Sea amid threats by Yemeni Houthi forces. The conflict, intensified by US and Israeli actions, has led to thousands of deaths in the Gulf region.

Oil Prices Surge; US Chip Stocks Plunge Pre-Market

Amid escalating Middle East tensions, Brent crude futures rose nearly 5%. In response, US tech stocks fell pre-market, with PHLX Sox Semiconductor Sector Ishares(SOXX.US) dropping almost 3% and SK hynix Inc. Sponsored ADR(SKHY.US) over 6%. Analysts suggest rising oil prices could boost inflation expectations, potentially constraining global central banks' monetary policies and pressuring tech stock valuations.

AI Concerns Cast Shadow on SaaS Sector

Fears that AI could disrupt software companies have led many Wall Street analysts to recommend selling Adobe Systems Incorporated(ADBE.US) and Salesforce.com, inc.(CRM.US) stocks. This bearish sentiment is at a multi-year high. Since early June, at least five firms, including Morgan Stanley, have downgraded Adobe, with over a dozen downgrades in 2026 alone.

Gold Prices Surge Amid Market Optimism

Gold prices climbed above $4,140, boosting shares of Harmony Gold Mining Co. Ltd. Sponsored ADR(HMY.US) by over 2%, while Kinross Gold Corporation(KGC.US) and Newmont Corporation(NEM.US) rose nearly 2%. Companies like Gold Fields, Agnico Eagle, and Pan American Silver saw over 1% gains. Wells Fargo analysts suggested limited downside risk for gold, with potential for significant long-term gains. Despite short-term fluctuations to $3,500, they forecast gold reaching $5,300-5,500 by 2026 and $5,800-6,000 by 2027.

Market Awaits Alphabet AI Capex Guidance

Alphabet Inc. Class A(GOOGL.US) is set to release its Q2 earnings post-market on July 22, but investors are focused on potential increases in AI capital expenditure guidance. The Information Network's Robert Castellano suggests Alphabet's previous 2026 Capex estimate of $180-190 billion might be conservative. With rapid AI data center expansion and strong cloud demand, Castellano anticipates an increase to $190-200 billion, while maintaining a 2027 forecast near $300 billion.

Alphabet Unveils New Gemini Models, Begins Gemini 4 Pre-training

Alphabet Inc. Class A(GOOGL.US) has launched Gemini 3.6 Flash, Gemini 3.5 Flash-Lite, and Gemini 3.5 Flash Cyber, with plans to test Gemini 3.5 Pro with partners. Development of the next-gen Gemini 4 is underway. Google aims for efficiency and quality in large-scale workflows, improving programming and multimodal performance. Artificial Analysis shows a 17% reduction in token usage, with some benchmarks like DeepSWE seeing a 65% decrease and lower costs per token.

Apple Begins Mass Production of iPhone 18 Series

Industry sources report that Apple Inc.(AAPL.US) has started mass production of the iPhone 18 series as of July 22, with production capacity ramping up. Foxconn, Apple's assembly partner, is experiencing a peak in hiring to meet demand.

UBS: ASML's Demand Visibility Extends Exceptionally Long

UBS analysts, after a virtual meeting with ASML Holding NV ADR(ASML.US)'s CFO Roger Dassen, report that $ASML plans to increase semiconductor equipment production in 2027 and 2028, indicating unusually long-term demand visibility. ASML aims to boost EUV lithography machine output by 30% in 2027 and again in 2028 due to substantial customer orders. Analysts believe this extended visibility suggests semiconductor demand may exceed supply for an extended period.

Rocket Lab Rises Nearly 3% Pre-Market After Securing $266M Government Contract

Rocket Lab(RKLB.US) has been awarded a $266 million fixed-price contract to conduct 12 suborbital launches for the U.S. government, with an option for 6 additional launches. The launches will take place at the Pacific Spaceport Complex in Alaska, expected to be completed by December 31, 2028. Approximately $112 million in FY 2025 R&D funding has been allocated at the time of the award.

SpaceX Short Interest Rises to 32%; Musk Responds

According to S3 Partners, approximately 206 million shares of SpaceX(SPCX.US), or 32% of its publicly traded float, are currently shorted, with a nominal short position of about $25 billion. This marks an increase from last week's 29% and a significant rise from about 5-7% a month ago. S3's Matthew Unterman notes that short sellers are increasing positions ahead of key catalysts, including SpaceX's first earnings report as a public company and the expiration of the lock-up period. Musk responded on X, stating that companies maintaining large short positions in SpaceX have a low chance of survival, reiterating his belief in SpaceX's potential to surpass Earth in value.

Super Micro Computer Soars Over 14% Pre-Market on Strong Q4 Preliminary Results

AI server maker Super Micro Computer, Inc.(SMCI.US) reported preliminary Q4 results for the period ending June 30, with GAAP and non-GAAP gross margins expected between 15% and 17%, nearly double the previous guidance of 8.2% to 8.4%. Management attributed this to a favorable customer mix and product lineup. Additionally, the company secured over $60 billion in new orders, marking a record high.

GE Vernova Drops Nearly 7% Pre-Market Despite 22% Q2 Revenue Growth

GE Vernova Inc.(GEV.US) reported a 22% year-over-year increase in Q2 revenue to $11.1 billion, driven by strong demand for gas turbines and grid equipment amid AI-driven power needs. Orders hit a record $24.2 billion. The company raised its full-year revenue and free cash flow guidance, projecting 2026 revenue between $45.5 billion and $46.5 billion. However, adjusted EPS of $2.47 missed expectations of $3.01, with ongoing losses in the wind power segment impacting short-term profitability.

SK Hynix Denies Intel Ohio Buyout

SK hynix Inc. Sponsored ADR(SKHY.US) has dismissed a report claiming it plans to acquire Intel Corporation(INTC.US)'s Ohio plant, stating it has no acquisition plans. Read in detail>>

Google Nvidia Back German Robot Startup

Alphabet Inc. Class A(GOOGL.US) and NVIDIA Corporation(NVDA.US) partner with German startup Microagi to deepen Europe's robotics push, per Semafor. Read in detail>>

Rocket Lab Wins $266M Space Force Deal

Rocket Lab(RKLB.US) just landed a $266 million US Space Force contract. This deal presents a test for its undervalued stock case. Read in detail>>

CPHI Stock Skyrockets Over 700%

China Pharma Holdings, Inc.(CPHI.US) soared nearly 700% on Tuesday, with shares adding 10% in after-hours trading. Read in detail>>