Tech Stocks lead Nasdaq decline 06/08/2025

HOT stories for today

US market wrap:

• Technology stocks underperformed in Tuesday’s trading, with the Nasdaq Composite dipping nearly 0.7%. In contrast, small-cap equities defied the broader market weakness, as the Russell 2000 gained 0.6%. It was a downbeat day on Wall Street, marking the fifth decline in six sessions for the S&P 500, and the sixth loss in seven for the Dow Jones Industrial Average. 
• Sentiment remained cautious with anti-Russian oil tariffs approaching, steep pharmaceutical taxes looming, and uncertainty surrounding the pending China trade agreement. After the bell, tech and semiconductor companies faced further pressure, as earnings reports disappointed and failed to meet expectations, triggering additional declines in extended trading.

AMD slid on mixed earnings

• AMD shares fell in extended trading after the company missed Wall Street’s earnings expectations for the second quarter. While revenue came in slightly ahead of forecasts, profit margins were pressured, partly due to U.S. export restrictions that impacted sales of AI chips to China. Despite the short-term setback, AMD highlighted strong momentum in its AI business. Major players like Meta and OpenAI are increasingly looking to AMD as a competitive alternative to Nvidia, particularly for running AI models at scale. CEO Lisa Su emphasized growing adoption of the company’s Instinct chips and teased upcoming models expected to rival Nvidia’s latest offerings.
• During the quarter, AMD also saw solid performance in its client and gaming segments, driven by renewed demand for desktop CPUs and gaming hardware. Still, U.S. trade restrictions remain a headwind, and the company acknowledged that some AI-related revenue has been delayed due to pending export approvals. Looking ahead, AMD expects continued growth across its data center and AI portfolio, with key customers planning new infrastructure based on AMD chips.

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Stocks on the move:

• Snap (SNAP): Shares of the social media company tumbled 14% after it fell short of revenue expectations for the second quarter. Snap reported $1.34 billion in revenue, narrowly missing the $1.35 billion forecast from analysts surveyed by LSEG.
• Rivian Automotive (RIVN): The EV maker's stock slid over 3% following mixed Q2 results. Adjusted losses came in at 80 cents per share, deeper than the 65-cent loss projected. Revenue, however, edged past expectations at $1.30 billion vs. $1.28 billion.
• Super Micro Computer (SMCI): The server manufacturer’s stock plunged more than 13% after it missed both earnings and revenue estimates for the fiscal fourth quarter. The company posted adjusted EPS of 41 cents on $5.76 billion in revenue, below LSEG's expectations of 44 cents and $5.89 billion, respectively. Its forward guidance also came in weaker than anticipated.
• Upstart Holdings (UPST): Despite delivering a strong beat on earnings and revenue, the AI-driven lending platform’s shares dropped around 9%. Upstart posted 36 cents per share, topping forecasts by 10 cents, and revenue reached $257 million, well above the expected $225 million.

Watchlist: AMD, RIVN, UPST, SMCI, NVDA, MCD, DIS, UBER SHOP

Today’s action

• Asia-Pacific markets saw a mixed performance on Wednesday, following losses on Wall Street, as investors weighed disappointing U.S. economic data alongside new tariff remarks from former President Donald Trump.“We’re going to be announcing tariffs on semiconductors and chips—it's a separate category, because we want them manufactured in the United States,” Trump said Tuesday, adding the plan would be unveiled “within the next week or so.”
• S&P 500 futures were mostly unchanged Tuesday night as market participants evaluated the latest round of corporate earnings. Dow Jones futures hovered near breakeven, while Nasdaq 100 futures slipped about 0.2%, dragged lower by a decline in Advanced Micro Devices (AMD) shares. Looking ahead to Wednesday, investors will focus on earnings reports from Disney (DIS), Uber (UBER), and McDonald’s (MCD) before the opening bell, with Airbnb (ABNB), DoorDash (DASH), and Lyft (LYFT) set to report after market close. Although no major economic reports are scheduled, comments from Federal Reserve officials, including Boston Fed President Susan Collins and San Francisco Fed President Mary Daly, will be closely watched for policy signals.

Bitcoin

• Bitcoin remains under pressure, trading around $114,000, after briefly dipping below $113K amid ongoing market volatility. Weak U.S. economic data and rising Fed rate cut bets have fueled cautious optimism, though technical signals remain mixed. Meanwhile, institutional investors continue to accumulate crypto assets, with over $4.4 billion in BTC and ETH added in recent days.
• Ethereum is gaining traction, driven by ETF inflows and renewed interest from corporate treasuries. Regulatory shifts also remain in focus, as the U.S. finalizes a strategic Bitcoin reserve, while the UK faces criticism for falling behind on stablecoin policy.
  Watchlist: BTC: 99,000–123,000 | ETH: 3,000–3,800 | SOL: 200–260

Forex

• EUR/USD trades sideways near 1.1570 in Wednesday’s Asian session as markets await remarks from the Fed Chair and a decision on Governor Kugler’s replacement. Caution prevails ahead of Eurozone retail sales data for June and fresh U.S. tariff announcements, with President Trump confirming plans to target semiconductors and chips.
• Meanwhile, the Japanese Yen (JPY) edges higher, supported by expectations of a BoJ rate hike by year-end. However, weak wage data and uncertainty around policy timing are capping further gains. Rising bets on a Fed rate cut in September also weigh slightly on the U.S. Dollar.
  Watchlist: EUR/USD: 1.1000–1.1650 | USD/JPY: 140–162

Basic Materials

• Gold (XAU/USD) snapped a four-day winning streak, slipping further from Tuesday’s two-week high as a modest USD rebound and positive risk sentiment pressured the safe-haven metal. While the pullback lacks a clear catalyst, Fed rate cut expectations may help limit downside.
• Meanwhile, WTI crude recovered to around $65.65 in early Wednesday trading after API data showed a 4.2 million barrel drop in U.S. stockpiles. However, rising OPEC+ supply could cap gains as traders await the EIA’s official inventory report later in the day.
  Watchlist: Gold: 2,600–3,500 | US Oil: 55.60–75.80

Economic Calendar (EST):

10:30 am: Crude Oil Inventories
02:00 pm: FOMC Member Collins Speaks
02:00 pm: FOMC Member Cook Speaks
02:00 pm: FOMC Member Daly Speaks


Earnings:

NVO                    Novo Nordisk
MCD                    McDonald’s Corp.
DIS                      Walt Disney Company
UBER                  Uber Technologies
SHOP                  Shopify Inc.

AMC (After Market Close): APP, DASH
 

The TEFS Analyst team wishes you a successful day!