Why Are Nasdaq, S&P 500 Futures Falling Premarket? NVDA, BABA, PSKY, SLS, AAOI, SPCX, RKLB Stocks In Focus

• U.S. Treasury Secretary Scott Bessent is expected to unveil what he has called the “toughest sanctions in history” against Iran on Monday.
• A renewed U.S.-Canada trade fight adds to market uncertainty. 
• Gold extended its rally, while crude prices moved lower despite the geopolitical backdrop. 

U.S. stock futures were lower early Monday as Treasury Secretary Scott Bessent prepared to announce new Iran sanctions, while U.S.-Canada trade talks collapsed into 50% tariff retaliations. 

Bessent has reportedly scheduled a press conference for 2:00 PM ET to detail economic measures against Iran. Iranian Foreign Minister Abbas Araqchi, meanwhile, has warned that support for the sanctions could amount to an act of war and has threatened retaliation against oil shipping routes. Gold has risen to $4,700 per ounce for the first time in over three months. U.S. crude futures slid more than 2% to $85.23/bbl, the lowest in four sessions. 

Meanwhile, trade negotiations with Canada collapsed over the weekend, with the U.S. imposing new 50% tariffs on roughly $20 billion of Canadian goods. Canada has threatened dollar-for-dollar retaliation.

As of 4:00 a.m. ET, Nasdaq futures fell 0.8%, S&P 500 futures were down 0.3%, while Dow and Russell 2000 futures were down 0.1%. 

On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index, has dipped into ‘bearish’ territory.’

What To Watch This Week 

The market's attention will shift to two potentially bigger catalysts later this week: Nvidia's earnings report on Wednesday and the Jackson Hole Economic Symposium in the latter half of the week, with Fed Chair Kevin Warsh scheduled to speak on Aug. 28 at 10 a.m. ET.

Investors will also monitor July PCE inflation, durable-goods data, second estimate of Q2 GDP, weekly jobless claims, trade data and inventories through the week. 

Tech Radar 

Nvidia (NVDA) has reportedly informed customers of hardware price hikes of over 15% due to rising memory costs. Other reported catalysts include a $6 billion licensing deal with Poolside and potential participation in a $30 billion valuation round in Perplexity. These triggers come ahead of the AI bellwether’s much-awaited earnings report this week.

Alibaba (BABA) shares fell 4% in early premarket trading after announcing a $10.2 billion equity raise over the weekend to fund AI infrastructure. Michael Burry remained skeptical about the fundraise, adding that he previously flipped his Alibaba position into JD and would not move back into BABA unless the stock falls by roughly half. 

Marvell Technology (MRVL): The chipmaker remains on retail radar after its agreement with Google. Investors expect its Thursday earnings report to offer another read on demand for AI infrastructure. 

Applied Optoelectronics (AAOI): Shares fell 13% in early premarket trade after filing a $600 million at-the-market (ATM) equity offering to fund manufacturing expansion for AI data center optical transceivers.

Trending Stocks

SpaceX (SPCX): Elon Musk mapped out plans to wind down the Falcon program to focus resources on Starship. Meanwhile, DZ Bank initiated a rare 'Sell' with a $100 price target. Cathie Wood’s ARK bought into SpaceX shares on Friday. 

Rocket Lab (RKLB): The company initiated flight-like testing on its "Hungry Hippo" fairing mechanism ahead of the Neutron rocket debut.

Sellas Life Sciences (SLS): Shares gained 2% in early premarket as traders reacted to reports that its REGAL Phase 3 AML trial may have reached the 80th event required for final analysis. Retail sentiment, however, remains split.

Eli Lilly (LLY) has launched its oral weight-management pill, Foundayo, in the UK, marking its first European market entry at a price point below injectable alternatives.

Paramount Skydance (PSKY): CEO David Ellison and California Attorney General Rob Bonta are expected to meet Monday as Paramount tries to resolve an antitrust lawsuit threatening its proposed Warner Bros. Discovery deal. 

Other tickers trending on Stocktwits at the time of writing included Broadcom (AVGO), Coreweave (CRWV), Applied Digital (APLD), and Boeing (BA).

What Else To Watch Monday

On the earnings front, Gorilla Technology (GRRR), PDD Holdings (PDD), and Newegg Commerce (NEGG) are among those reporting today. 

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