Most Important News

1. Job Losses Surprise Markets;
2. Nasdaq's 23-Hour Trading System Approved by SEC;
3. SK Hynix to Build Two New Chip Factories in South Korea;
4. Alphabet Raises $25B in Bonds Amid AI Spending Concerns;

Stock futures increased on Friday as traders predicted that an unexpected loss in the latest jobs report would prompt the Federal Reserve to pause interest rate changes.

As of 03:47 PM Riyadh time, Nasdaq 100 futures led the gains, climbing 1.17%, while S&P 500 futures rose 0.53%. Dow Jones Industrial Average futures increased by 166points, or 0.31%.

July’s nonfarm payrolls report revealed a decrease of 23,000 jobs, whereas economists surveyed by Dow Jones had anticipated an increase of 83,000. The unemployment rate dropped to 4.1% as the labor force participation rate fell to its lowest level in over five years. Economists had expected it to remain steady at 4.2%.

Airbnb, Inc.(ABNB.US) shares jumped 7% in premarket trading after the vacation rental company exceeded expectations on both revenue and earnings. Cloudflare(NET.US) surged 16% in premarket following a strong full-year and current-quarter outlook from the cloud cybersecurity company.

Meanwhile, oil prices edged lower on Friday. West Texas Intermediate futures for September delivery decreased by 0.6%, trading at $76.85 per barrel, while Brent crude, the international benchmark, fell 0.7% to $81.90.

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As of 03:48 PM Riyadh Time, top pre-market movements are as follows:

Job Losses Surprise Markets

The latest employment data from the United States revealed an unexpected decline in non-farm payrolls for July. The report showed a decrease of 23,000 jobs, significantly missing market expectations of an 80,000 increase. This contrasts sharply with the previous month's growth of 57,000 jobs. Despite the drop in employment numbers, the unemployment rate edged down to 4.1%, slightly better than the anticipated 4.2% and the previous month's rate of 4.2%.

Trump to Meet Mining Executives on Critical Mineral Supply

US President Trump is set to convene a meeting with top mining executives on August 7 at the State Department to address securing critical mineral supplies for the US and its allies. Reuters reports that the US seeks to replenish key minerals depleted during the conflict with Iran. Expected attendees include $RIO.$, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs(BHP.US), Freeport-McMoRan, Inc.(FCX.US), Mountain Pass Materials, USA Rare Earth(USAR.US), Energy Fuels Inc.(UUUU.US), and other firms. Multiple deals and MOUs are anticipated.

Nasdaq's 23-Hour Trading System Approved by SEC

According to Nasdaq's Q1 2026 financial report and SEC 8-K filing, the SEC has approved its 23-hour trading system (23/5), set to launch on December 6, 2026. This new system will allow continuous trading with only a one-hour daily closure from 8:00 PM to 9:00 PM Eastern Time for system clearing and data processing.

KOSPI Plunge Drives Korean Retail Investors Back to US Stocks

The sharp decline in the KOSPI is undermining South Korea's efforts to bring retail investors, known as the "ant army," back to the domestic market. In July, amid the largest monthly drop since the 2008 financial crisis, Korean retail investors poured $4.6 billion into US stocks, according to the Korea Securities Depository. This figure significantly surpasses the 2025 monthly average of $2.7 billion, reflecting a continued shift towards US investments.

SK Hynix to Build Two New Chip Factories in South Korea

SK hynix Inc. Sponsored ADR(SKHY.US) plans to invest approximately KRW54.3 trillion (around $38.28 billion) in constructing two new wafer fabs in Yongin and Cheongju, South Korea. The initiative aims to boost HBM, next-gen DRAM, and NAND production. The company will adopt a "build infrastructure first, add equipment as needed" strategy, with production starting between 2028 and 2029, adjusting capacity based on customer demand to meet the growing AI-driven market.

Applied Optoelectronics Reports Strong Q2 Revenue Growth

Applied Optoelectronics, Inc.(AAOI.US) reported a Q2 revenue of $191.9 million, marking an 86% year-on-year increase. Its data center segment surpassed $100 million for the first time, with 800G product revenue doubling quarter-over-quarter. The company is set to ship 1.6T products soon, with projections indicating monthly data center transceiver revenue could reach $471 million by mid-2027. Demand exceeds supply capacity by 20% to 40%, raising concerns about timely capacity fulfillment.

Micron Sees AI Transforming Memory Industry's Core Value

Micron Technology, Inc.(MU.US) executives highlighted during a meeting with Deutsche Bank at FMS 2026 that memory now accounts for over 50% of system value, with AI driving a fundamental shift in its role within system architecture. Deutsche Bank’s Melissa Weathers noted that $MU.US, leveraging its full-stack technology leadership from HBM to memory, is well-positioned for growth without compromising profitability, potentially leading to upward earnings revisions and valuation re-rating.

Nvidia Reportedly Testing Scaled-Down Rubin Ultra GPU Versions  

NVIDIA Corporation(NVDA.US) is reportedly testing multiple versions of its Rubin Ultra GPU, with some featuring reduced HBM memory capacity. The move addresses supply chain constraints amid surging AI demand, which has led to a shortage of high-end memory and ongoing pressure on data center development. Sources indicate Nvidia has tested at least three downgraded HBM configurations in recent weeks. While initially announced with 1TB of HBM4e memory across 16 stacks, TrendForce reports Nvidia is now evaluating alternative configurations, including 8-layer HBM4e, 12-layer HBM4, and 8-layer HBM4. Final specifications remain undecided.

Alphabet Raises $25B in Bonds Amid AI Spending Concerns

Alphabet Inc. Class C(GOOG.US) parent Alphabet plans to issue $25B in bonds, securing one of the largest AI-related debt order books this year, with demand reaching $115B—over four times the issuance size. This marks the third-largest investment-grade bond subscription in 2026, following Oracle Corporation(ORCL.US)’s $129B and Amazon’s $126B earlier. Insiders reveal Alphabet intends to issue dollar bonds twice annually to reassure markets amid concerns over excessive tech debt supply and soaring AI capital expenditures.

Apple Increases Trade-In Values for Multiple Devices

Apple Inc.(AAPL.US) has raised trade-in values for various iPhone, iPad, Mac, and Apple Watch models, while also adding several Android devices to its recycling program. The adjustments, with increases of up to 30% for select devices and an average hike of 6.6%, aim to ease price pressures on consumers. However, Apple notes that quoted values represent maximum prices, which may vary based on device condition, color, and version.

AMD Acquires AI Chip Startup Taalas to Boost Inference Market Presence

Advanced Micro Devices, Inc.(AMD.US) announced the acquisition of Taalas, a Canadian AI inference chip startup, to expand its footprint in the rapidly growing AI inference market. While transaction details remain undisclosed, Taalas, founded in 2023, focuses on developing chips that address computational and memory bottlenecks in AI inference, enhancing model efficiency and deployment cost-effectiveness. Unlike training chips, inference chips utilize pre-trained models for prediction, serving cloud data centers and various devices. The demand for inference power has surged due to increased usage of large AI models.