Nasdaq Index, Dow Jones, S&P 500 News: Futures Stable; TSMC and TDK Announce Key Technology Updates

Stock Futures Steady Amid Holiday-Shortened Week

Stock futures remained stable on Monday morning as traders entered a week shortened by the Juneteenth holiday. Last week saw mixed results with the Dow facing its third losing week in four, while the S&P 500 and Nasdaq reached record highs, marking their seventh weekly gain in the last eight weeks. This week, investors will scrutinize whether this rally can sustain amid emerging market uncertainties.

At 12:54 GMT, Dow Futures are trading 38908.00, down 101.00 or -0.26%. S&P 500 Index Futures are at 5496.75, down 5.50 or -0.10% and Nasdaq Futures are trading 19960.25, up 14.75 or +0.07%.

Key Themes Driving the Market

Investors are focusing on two major themes this year: the growth in artificial intelligence (AI) and the resurgence of manufacturing and reshoring initiatives. Despite strong economic growth, recent weaker economic data has cast doubt on the speed of this industrial rebound compared to the rapid advancements in AI.

Economic Data and Earnings Reports

This week is critical for economic data releases and corporate earnings. May retail sales data, set to be released on Tuesday, along with housing starts and home sales data later in the week, will be closely monitored. Major earnings reports from Lennar, Kroger, Darden Restaurants, and CarMax are also on the radar.

Apple Supplier TDK’s Breakthrough

TDK, an Apple supplier, announced a significant breakthrough in solid-state battery technology, potentially enhancing performance for wearable devices. The new material boasts an energy density of 1,000 Watt hours per liter, far surpassing current mass-produced batteries. This innovation is expected to benefit wireless earphones, hearing aids, and smartwatches, and aligns with EU battery regulations due to its safety and efficiency.

TSMC Faces Strong Demand and Price Hikes

Taiwan’s TSMC is experiencing overwhelming demand for its 3nm technology, with clients like Apple and NVIDIA filling its production capacity through 2026. TSMC plans to raise its 3nm prices by over 5% and increase advanced packaging prices by 10-20% next year. The company’s advanced packaging capacity is crucial for AI accelerators and high-performance computing, with NVIDIA, AMD, and others heavily relying on it. TSMC’s expansions and equipment upgrades are set to meet this surging demand, ensuring robust market control for its clients.

Market Forecast

Given the mixed signals from economic data and strong earnings reports, the market outlook remains cautiously optimistic. The AI sector’s continued strength and potential breakthroughs in technology like TDK’s batteries offer bullish signals. However, weaker industrial data and macroeconomic pressures may temper this optimism, suggesting a balanced approach for traders in the near term.

Technical Analysis

E-mini Nasdaq-100 Index futures are grinding higher during the premarket session, setting the table for the cash market index to reach another record high.

On the downside, the key level to watch is 19760.50. Taking out this level will be an early sign of weakness, but not a trend changing event.