Key insights
- US equities are poised for a fourth consecutive losing week amid rising crude prices and geopolitical tensions surrounding Iran. Concerns exist that markets haven't fully priced in the energy shock's impact on consumer spending. A "quadruple witching" event is expected to increase market volatility. News of Super Micro Computer's co-founder being charged with smuggling Nvidia AI servers to China adds further negative pressure.
📌 Top story -- scroll down for more updates
9:35 am
The S&P 500 and Nasdaq fell Friday, tracking toward their fourth consecutive losing week as Brent crude surged to $110. While Israel’s leadership suggests the Iran conflict could conclude faster than feared, some analysts warn that market stability hinges entirely on reopening the Strait of Hormuz. Adding to the friction, today’s "quadruple witching" event — the simultaneous expiration of trillions in derivatives — is expected to amplify intraday swings. Despite the Dow nearing correction territory, some analysts argue equities haven't yet priced in the 2% hit to household purchasing power caused by the energy shock.
8:30 am -- AMZN -0.51% in pre-market trading
Amazon (AMZN 1.50%) is reportedly taking a second shot at the smartphone market with a secretive new project codenamed "Transformer." Developing within its devices and services unit, the device aims to succeed where the 2014 Fire Phone failed by focusing on deep "mobile personalization" and seamless synchronization with Alexa. Unlike its predecessor, which prioritized shopping, Transformer is designed as a ubiquitous AI assistant--a "Star Trek" style conduit intended to capture the high-value mobile user data currently controlled by Apple (AAPL 0.23%) and Alphabet (GOOG 1.58%). While internal sources caution the project remains subject to financial shifting, the initiative signals Jeff Bezos' refusal to cede the primary gateway of the digital "everything store" to rival operating systems.
8:15 am -- SMCI -25.50%, NVDA -0.57% in pre-market trading
Super Micro Computer (SMCI 27.10%) is reeling after its co-founder, Wally Liaw, was charged in a $2.5 billion scheme to smuggle high-end Nvidia (NVDA 1.23%) AI servers to China. Federal prosecutors allege Liaw and other insiders used a "pass-through" entity in Southeast Asia to ship restricted hardware in unmarked boxes, bypassing strict U.S. export controls. While Supermicro itself is not named as a defendant, shares tumbled as the indictment revealed the illicit entity had become one of the company's largest customers, accounting for nearly $100 million in quarterly revenue. The scandal puts a harsh spotlight on the "server partner" ecosystem, raising fears that regulators may tighten oversight on how Nvidia chips are distributed globally.
7:30 am -- TSLA -0.62% in pre-market trading
Reuters reports Tesla (TSLA 2.43%) is looking to buy Chinese-made solar equipment worth $2.9 billion in a bid to boost solar power capacity for Tesla and CEO Elon Musk's related companies, a clear signal of intent for renewable energy.
7:00 am -- MKC +0.20%, UL +0.93% in pre-market trading
Unilever (UL +1.14%) is in talks to sell its massive food division to spice giant McCormick & Co. (MKC 1.02%) in a deal that could be valued at up to $37 billion. The move would mark the final step in a decade-long transformation for the FTSE 100 company, allowing it to exit slower-growth categories like Hellmann's mayonnaise, Marmite, and Pot Noodle to focus entirely on high-margin beauty and personal care. McCormick, which is expected to fund the acquisition through a mix of stock and cash, would instantly become a global pantry powerhouse. Analysts at Jefferies suggest the divested unit carries an enterprise value of roughly 9.5 times EBITDA, providing Unilever with a massive cash pile to fuel further acquisitions in the premium skincare and wellness sectors.
6:45 am -- AMZN -0.80% in pre-market trading
Amazon (AMZN 1.50%) has quietly acquired Swiss robotics start-up Rivr to solve the "final 100 yards" of logistics. Rivr's unique hardware--a four-legged robot on wheels often described as a "dog on roller skates"--can autonomously climb stairs and navigate curbs, obstacles that grounded Amazon's previous "Scout" sidewalk bots. While terms weren't disclosed, Rivr was recently valued at $100 million and had been a standout in the Amazon Industrial Innovation Fund. This move coincides with reports that Amazon founder Jeff Bezos is separately seeking to raise $100 billion for a "manufacturing transformation" fund. That vehicle aims to acquire industrial firms in aerospace and chipmaking to radically automate them using "physical AI" developed by his new start-up, Project Prometheus.
6:30 am
By Morning Show host Jim Mueller, CFATeam Rule Breakers
Whenever something big happens in the world, the markets will react. Heck, it doesn't even have to be a big event if it catches the imagination (and fears) of Wall Street and Main Street.
Today, it's obviously the U.S. and Israeli war against Iran, and Iran's response. This is affecting oil. (It's the Mideast, remember, everything there affect oil.) Oil prices have spiked and everyone's trying to come to terms with that.
Even more, they're trying to figure out how to profit from it. Human, all too human.
Higher oil prices will almost certainly lead to higher prices for pretty much everything. Transportation costs, if nothing else, will go up, but petroleum is used all throughout the economy, not just as transportation fuel. That means higher prices and lower margins, right? How should I position my portfolio to avoid the expected pain?
On the other side, where can I put my money to work to make money off this? Oil companies? Pick and shovel oil-related companies? Nuclear or wind or solar companies? (If oil prices stay high, won't electric cars become more popular, which means other sources of electricity become more in demand?)
Honestly, just slow down people. Prices on a lot of this (if not all of it) have already moved. You now want to sell some stuff that could be hurt at lower prices and buy some stuff that could benefit at higher prices? Isn't that kinda backward?
5:45 am -- ALAB +0.51% in pre-market trading
Astera Labs (ALAB 4.44%) was the subject of the latest Scoreboard video.
5:00 am
Stock futures are edging higher Friday morning as investors cling to a tentative de-escalation in the Middle East. While the S&P 500 is still on track for its fourth consecutive weekly decline, sentiment stabilized after Israeli Prime Minister Benjamin Netanyahu claimed Iran's missile infrastructure has been "decimated," potentially shortening the war's timeline. President Trump added to the relief, stating the economic fallout has been "less than expected." However, the "higher-for-longer" interest rate narrative remains a potent drag; with the Federal Reserve highlighting energy-driven inflation risks, the Dow Jones and Nasdaq Composite both sit roughly 8% below their record highs, teetering on the edge of official correction territory.