Pre-Bell｜U.S. Futures Edge Up; Confluent Surges 29%; Kymera Therapeutics Rockets 28%; Carvana Jumps 9%; Broadcom Rises over 2%; Tesla Falls 1.6%; CoreWeave Drops 6%

U.S. stock index futures edged higher on Monday, supported by expectations that the Federal Reserve will deliver a long-awaited interest rate cut later this week at a meeting widely seen as one of the most divisive in recent history.

Market Snapshot

At 8:30 a.m. ET, Dow e-minis were up 3 points, or 0.01%, S&P 500 E-minis were up 5 points, or 0.07%, and Nasdaq 100 E-minis were up 49.75 points, or 0.19%.

Pre-Market Movers

Tesla fell 1.6% to $447.75 ahead of the opening bell after being downgraded at Morgan Stanley. Andrew Percoco, the bank’s new analyst covering the electric-vehicle maker, downgraded the stock to Equal Weight from Overweight, citing factors including slower EV adoption and a volatile trading outlook for the next 12 months. Percoco hiked his price target to $425 from $410, although that implies Tesla could fall 6.6% from its close Friday of $455. Fellow EV maker Lucid, which was downgraded to Underweight from Equal Weight at Morgan Stanley, dropped 3.4%. Rivian Automotive was downgraded to Underweight from Equal Weight, sending shares down 3.1%.

Netflix was up 1.3%. President Donald Trump said Sunday that the streaming giant’s $72 billion deal to buy Warner Bros. “could be a problem” because it would give Netflix a much larger market share. Wall Street has been worried that Netflix may end up overpaying for Warner Bros. Discovery, so the prospect of the White House scuttling the acquisition probably is good news for the streamer’s shareholders. Warner Bros. Discovery stock was down 1.3% on Monday.

CoreWeave stock fell nearly 6% in premarket trading. CoreWeave has announced its intention to offer $2 billion aggregate principal amount of convertible senior notes due 2031 in a private offering. The company has also granted the initial purchasers an option to buy up to an additional $300 million principal amount of notes within a 13-day period from the initial issuance date.

Shares of NextEra Energy jumped about 3% in premarket trading. NextEra said on Monday it has expanded its partnership with Google Cloud to scale multiple gigawatts of data center capacity and energy infrastructure across the U.S..

Confluent surged 29% to $29.84. International Business Machines is in advanced talks to buy the data-infrastructure company for about $11 billion, The Wall Street Journal reported Sunday, citing people familiar with the matter. The deal could be announced as soon as Monday, according to the Journal. IBM and Confluent didn’t immediately respond to a request for comment from Barron’s. IBM shares rose slightly.

Used-car retailer Carvana jumped 9.1%, building materials provider CRH gained 7.1%, and HVAC and plumbing company Comfort Systems USA climbed 1.8%. The three stocks will be joining the S&P 500 on Dec. 22, as part of the benchmark index’s quarterly rebalancing, S&P Dow Jones Indices said Friday.

Broadcom stock rose over 2% while Marvell fell over 6% in premarket trading after Microsoft is in talks to shift its custom chip business to Broadcom from Marvell.

Shares of Kymera Therapeutics rose 27.6% premarket. Kymera says its experimental oral treatment for eczema eased symptoms and itching in a small early-stage study, while also helping patients who had asthma or hay fever.

Auto parts provider LKQ, chemical company Solstice Advanced Materials, and flooring manufacturer Mohawk Industries will be booted out of the S&P 500 as part of the reshuffle. All three stocks were roughly flat in thin trading.

Crypto stocks were rising, with Bitcoin up 3.1% over the past 24 hours. Major investor Strategy added 2.4%, while digital-asset exchange Coinbase Global was up 2.2%, and online trading platform Robinhood Markets gained 2.1%.

Market News

Investors Remain Exposed to Potential Dollar Losses, BIS Says

Investors outside the U.S. remain exposed to the risk of losses stemming from possible falls in the dollar, said Hyun-Song Shin, economic advisor and head of the monetary and economic department at the Bank for International Settlements.

President Trump’s announcement of sweeping tariffs in April and an unexpected depreciation in the dollar prompted investors to seek more protection against the risk of further declines in the currency, according to the BIS Quarterly Review.

However, hedge ratios for the dollar—the amount of protection against the currency falling—remain fairly low, Shin said in a call with reporters.

Berkshire Hathaway Shuffles Top Ranks in Runup to Warren Buffett’s Retirement

Berkshire Hathaway’s top ranks are changing hands as it prepares for the imminent retirement of its founder Warren Buffett.

One of Buffett’s top lieutenants, Todd Combs, Berkshire’s investment manager and chief executive of its Geico insurance unit, is stepping down to join JPMorgan JPM -0.34%decrease; red down pointing triangle Chase to head up the bank’s recently launched security and resiliency initiative.

JPMorgan on Monday said Combs will lead the initiative’s $10 billion strategic-investment group and act as a special adviser to Chairman and CEO Jamie Dimon.