【US Pre-Market】Memory Stocks Including Micron, WDC and SanDisk Fall as Fed Rate-Hike Expectations Rise

Meta (META) fell over 2% in pre-market trading. The company unveiled Meta Charm at the Meta Connect event, a small portable device featuring the Muse AI assistant, an approximately 2-inch touchscreen, and 5G connectivity, which is scheduled to go on sale before the end of the year. Although the new product further expands Meta's AI hardware footprint, the company's stock had accumulated a gain of nearly 12% earlier this week, leading to pre-market profit-taking combined with rising U.S. Treasury yields. Reuters

AI chip stocks broadly fell in pre-market trading. Nvidia (NVDA) dropped about 1%, AMD (AMD) fell about 2%, and Intel (INTC) and Marvell Technology (MRVL) both slipped nearly 3%. As the 10-year U.S. Treasury yield broke above 5%, market bets on a continued rate hike in October rose significantly, putting valuation pressure on high-valuation AI and semiconductor stocks.

Memory storage stocks moved lower across the board in pre-market trading. Micron Technology (MU) fell about 2.3%, SanDisk (SNDK) dropped about 2.7%, while Western Digital (WDC) and Seagate Technology (STX) both slipped over 2%. After significant earlier gains in the sector, capital engaged in short-term profit-taking amid hawkish rate expectations and a broader pullback in tech stocks.

MGM Resorts International (MGM) plunged nearly 9% in pre-market trading. The buyer group under Barry Diller withdrew its privatization acquisition proposal submitted in June, and the MGM board subsequently stated that the company will continue to operate independently. Fading expectations of an acquisition premium were the main reason for the pre-market drop in the stock price.

The U.S. and China have agreed to extend their trade truce. U.S. Treasury Secretary Scott Bessent stated that both sides agreed to extend the trade truce, originally set to expire on November 10, by two months to January 10, 2027. Trump and Xi Jinping will hold a closed-door meeting at the White House today, covering topics including tariffs, chip export restrictions, artificial intelligence, Taiwan, and the situation in Iran.

New York Fed President John Williams stated that another rate hike may still be needed this year. He said that to further reduce inflation risks, market expectations of another Fed rate hike before year-end are a "reasonable way of thinking," but the final decision will still depend on upcoming economic data.

Significant differences remain in negotiations between the U.S. and Iran. Iran is evaluating the U.S. response to its peace proposal and demanding an end to the naval blockade on Iranian ports; an Iranian security official stated that the Strait of Hormuz will not reopen until relevant conditions are met.

The White House denied that it is drafting a 90-day diesel export ban. Previous reports that the U.S. might restrict diesel exports triggered energy market volatility. White House officials denied such plans, and U.S. Energy Secretary Chris Wright also stated that an export ban cannot effectively address high energy prices.

At 8:30 AM ET on September 24, the U.S. releases initial jobless claims data.

At 8:50 AM ET on September 24, Cleveland Fed President Beth Hammack delivers a speech.

At 10:00 AM ET on September 24, the U.S. releases August new home sales data.

At 10:10 AM ET on September 24, Philadelphia Fed President Anna Paulson delivers a speech.

At 11:30 AM ET on September 24, Donald Trump and Xi Jinping hold a bilateral meeting.

After U.S. market close, Costco (COST) reports fourth-quarter fiscal results, with the market expecting EPS of around $6.53 and revenue of around $94.9 billion.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.