Intel (INTC) Skyrockets 8.8% Pre-Market as TSMC Seeks Investment from NVIDIA, AMD, and Broadcom
Intel Corporation (NASDAQ: INTC) saw an impressive pre-market surge of 8.8% following reports that Taiwan Semiconductor Manufacturing Company (TSMC) has proposed a strategic investment from NVIDIA (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO) into Intel’s wafer factory joint venture. This development marks a potential turning point for Intel as it continues its push for semiconductor dominance.
Broader Market Trends and U.S. Stock Futures Rally
U.S. stock index futures showed significant upward momentum after the release of lower-than-expected Consumer Price Index (CPI) data, which temporarily boosted investor confidence. The Nasdaq 100 futures surged by nearly 2%, while S&P 500 futures climbed 1.59%, and Dow Jones futures increased 1.25%. The U.S. dollar index initially dipped but later rebounded to 103.52.
Chinese Tech Stocks Slide as XPeng, NIO, and Baidu Decline
While Intel and the broader U.S. markets enjoyed positive sentiment, major Chinese stocks faced downward pressure. XPeng Motors (NYSE: XPEV) plummeted by approximately 7%, NIO Inc. (NYSE: NIO) dropped by around 2%, and Baidu Inc. (NASDAQ: BIDU) also declined by 2%. The weakness in Chinese tech stocks comes amid ongoing concerns about economic growth and regulatory uncertainty in China.
European Markets Post Strong Gains Amid Bond Yield Movements
European stock indices followed suit with expanded gains:
- Euro Stoxx 50 Index rose by 1.58%
- German DAX Index surged 1.8%
- UK’s FTSE 100 Index gained 0.65%
- France’s CAC 40 Index climbed 1.49%
Meanwhile, the European bond market saw notable moves, with the German 10-year bond yield reaching its highest level since 2023. The UK bond market also reacted, as the yield spread between the 5-year and 30-year bonds widened to 100 basis points for the first time since 2021.
Geopolitical Developments and Ukraine’s Ceasefire Agreement
Geopolitical tensions remained in focus as U.S. and Ukrainian representatives engaged in a nine-hour meeting in Jeddah, Saudi Arabia. Reports suggest Ukraine agreed to a 30-day temporary ceasefire in exchange for renewed U.S. intelligence sharing and military aid, a move that could have significant implications for global stability and financial markets.
Tesla Rises 5.5% and Gold Holds Steady
Tesla (NASDAQ: TSLA) continued its strong performance, rising 5.5% during pre-market trading. Meanwhile, spot gold remained relatively stable, ticking up 0.01% to $2,916.04 per ounce as investors balanced inflation concerns with shifting market dynamics.
Intel’s sudden surge, combined with strong gains in U.S. and European markets, sets the stage for an eventful trading session. With the semiconductor industry at the forefront of innovation and geopolitical factors influencing investor sentiment, all eyes remain on key market movers.
