Premarket Trading Highlights: Meta Platforms, Newmont, and Nvidia Report Significant Movements
- Meta Platforms dropped 3% in premarket after a nearly 13% rise last week.
- Gold miner Newmont fell over 4% as gold prices declined, influenced by rising bond yields.
- Nvidia rose 1.5% after announcing new AI safety software and a $150 billion stock buyback increase.
Meta Platforms, following a significant nearly 13% gain the previous week, experienced a 3% decline in premarket trading. This drop coincided with a broader sell-off in stocks associated with the AI sector, particularly after announcements regarding its personal AI agent, Muse.
Newmont, a major gold mining company, saw its shares fall more than 4%. This decline was attributed to a 3% decrease in gold prices, as higher global bond yields, including the 10-year U.S. Treasury note yield surpassing 5.2%, diminished the attractiveness of non-interest-bearing assets.
In contrast, energy stocks benefited from a significant rise in U.S. oil prices, which climbed over 4% to exceed $96 per barrel. Consequently, companies like Occidental Petroleum and ConocoPhillips each posted increases of 2%, while Exxon Mobil and Chevron gained 1.5%.
Meanwhile, airlines faced pressure from rising oil prices, prompting major carriers to report losses. United Airlines and American Airlines each dropped more than 2%, while Southwest Airlines and Delta Air Lines saw declines of over 1.5% as investors considered the implications for jet fuel costs.
On the semiconductor front, while the overall sector faced a downturn with the iShares Semiconductor ETF (SOXX) falling nearly 2%, Nvidia distinguished itself by gaining 1.5%. The company recently announced the introduction of new AI safety software and a substantial increase of $150 billion to its stock buyback program. Other semiconductor firms like Marvell Technology and Advanced Micro Devices also started the week down by about 2%.
News Courtesy of CNBC
