Key Takeaways
- Storage and memory chip stocks including Sandisk, Western Digital, and Micron declined more than 3% in premarket Thursday following Wednesday’s steep losses
- Software companies ServiceNow, Oracle, and Adobe extended gains, highlighting an ongoing sector rotation
- Palantir climbed over 3% following its announcement of an Nvidia AI collaboration for U.S. government applications
- Rising cryptocurrency prices drove Strategy higher by more than 5%, while Coinbase and Robinhood also advanced
- National Beverage jumped 6% on special dividend news; Embraer dropped 5% following a strategic acquisition
Storage and memory chip manufacturers faced additional selling pressure Thursday morning, extending a brutal session from the day prior that saw some of the sector’s steepest declines this year.
Sandisk shares tumbled more than 10% Wednesday and continued their descent in premarket hours Thursday. Western Digital retreated over 6%, while Seagate Technology joined the downturn. Micron Technology declined 2.7% Thursday morning after plunging 10.6% in the previous session.
The weakness rippled through adjacent hardware sectors. Corning shares fell 2.6% while Dell Technologies retreated 2.7% in early trading.
Software Names Continue Upward Momentum
In stark contrast to hardware struggles, software equities pushed higher. ServiceNow, Oracle, and Adobe all traded in positive territory, extending a sector rotation trend that has gained momentum in recent trading sessions.
Bending Spoons, the AOL owner that made a spectacular 40% debut Wednesday, gave back approximately 3% in premarket activity Thursday.
Palantir Advances on AI Government Contract
Palantir shares climbed more than 3% Thursday, building on Wednesday’s 7.8% advance. The data analytics firm unveiled a strategic partnership with Nvidia earlier this week focused on developing specialized AI solutions for federal government use.
Advanced Micro Devices declined 2%, drifting further from the trillion-dollar valuation milestone. The chipmaker’s market capitalization contracted from $947 billion Tuesday to $881 billion by Wednesday’s close. Intel and Marvell Technology each surrendered more than 2%.
A rebound in cryptocurrency valuations propelled Strategy, which holds the largest corporate Bitcoin position, up more than 5%. Robinhood Markets advanced 2.6% while Coinbase Global gained 3%.
National Beverage, the company behind LaCroix sparkling water, surged 6% after announcing a $3.25 per share special cash dividend. The beverage maker posted full-year revenue of $1.2 billion alongside earnings per share of $1.96.
Can-Fite BioPharma tumbled 12% despite disclosing encouraging Phase 2a clinical trial results for Namodenoson, its pancreatic cancer treatment candidate. The study achieved its primary safety objective, positioning the company to advance into Phase 2b testing.
Embraer declined 5% after finalizing its acquisition of Safran Cabin’s 50% interest in a joint venture producing aircraft interiors. The Mexico-based operation manufactures components for Embraer’s E-Jet aircraft series. The companies did not reveal transaction details.
Broad market futures indicated lower opening levels Thursday as trading activity winds down in a week shortened by the holiday. Markets prepare for America’s 250th Independence Day celebration.
Market participants are closely monitoring Friday’s June employment data release. Ongoing U.S.-Iran diplomatic discussions in Doha are also contributing to cautious sentiment as the extended weekend approaches.
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