Pre-Market Highlights: What to Know Before the Market Opens

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Samiat

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Nov 12, 2024
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Pre-Market Highlights: What to Know Before the Market Opens​

U.S. stock futures are trading lower this morning as investors react to Moody’s downgrade of the U.S. credit rating. Walmart (WMT) shares are slipping after comments from former President Donald Trump, Nvidia and Foxconn have unveiled plans for an AI supercomputer in Taiwan, and Diageo (DEO) warns of a $150 million tariff impact. Here’s what’s moving markets:

1. U.S. Futures Dip After Moody’s Downgrade​

U.S. futures are in the red as investors digest Moody’s downgrade of the U.S. credit rating ahead of a week filled with earnings, housing data, and Fed commentary.

  • Nasdaq futures: -1.6%
  • S&P 500 futures: -1.2%
  • Dow futures: -0.7%
Bitcoin (BTCUSD) is also retreating, trading near $103,000, while oil futures are slipping. Meanwhile, the 10-year Treasury yield and gold prices are ticking higher as investors seek safer assets.

2. Moody’s Cuts U.S. Credit Rating​

Moody’s has downgraded the U.S. government’s credit rating from its highest tier, citing “persistent, large fiscal deficits.” The agency forecasts that U.S. debt could reach 134% of GDP by 2035, up from 98% in 2024. The move comes amid ongoing debates in Congress over extending tax cuts and increasing spending.

3. Walmart Shares Slide After Trump Tariff Comments​

Walmart (WMT) shares are down 2% premarket after former President Donald Trump criticized the company on Truth Social, urging it to absorb tariffs instead of raising prices. Trump said Walmart made “BILLIONS OF DOLLARS” last year and should “EAT THE TARIFFS” alongside China. This follows Walmart’s recent warnings that higher tariffs could lead to price hikes.

4. Nvidia and Foxconn to Build AI Supercomputer in Taiwan​

Nvidia (NVDA) and Foxconn have announced a partnership to build a new AI factory supercomputer in Taiwan. The facility will feature 10,000 Nvidia Blackwell GPUs and will be developed with support from Taiwan’s government. TSMC plans to use the system to enhance its R&D.
Nvidia shares are down 3% in premarket trading.

5. Diageo Warns of $150M Annual Hit From Tariffs​

Diageo (DEO), the parent company of Guinness, Johnnie Walker, and Smirnoff, said it expects a $150 million annualized impact from tariffs, according to its Q3 report. The company plans to cut $500 million in costs over the next three years. This comes despite a new U.S.-U.K. trade deal that reduces some duties, while a 10% baseline tariff remains in place.
DEO shares are down 1% in premarket trading.
 
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