US stock markets are expected to hold their gains from Monday, with falling oil prices providing support. The Nasdaq 100, a tech-heavy index, is currently trading just under its previous close, having gained 2.8% since the start of the week and nearing its record high from June. The index's performance was driven by a significant rally in Meta, which benefited from the successful launch of its AI assistant Muse, and strong gains in semiconductor suppliers.
The Dow Jones Industrial Average, another major index, is expected to rise by 0.4% to 52,278 points. David Kruk, head of trading at La Financière de l'Echiquier in Paris, noted that there is no indication of short selling in technology and AI stocks ahead of the third-quarter earnings season. Kruk also expressed hope that President Donald Trump will find a way to lower oil prices before the upcoming US elections in November.
The upcoming US elections, where the entire House of Representatives and a third of the Senate will be up for election, are a concern for Trump due to the unpopularity of the Iran war. However, the diplomatic efforts of the Iranian leadership have put pressure on oil prices. Iranian Parliament Speaker Mohammed Bagher Ghalibaf emphasized that diplomacy does not mean surrender but the transformation of military strength into political gains. Iran's chief negotiator also warned Trump that he cannot impose his power on the Iranian people and forces.
Iran's President Massud Peseschkian arrived in New York for the UN General Assembly, where he is expected to deliver a speech. There are speculations about potential meetings between the Iranian delegation and mediators or US government representatives.
Alibaba's shares, listed in New York, are expected to gain 3.1% after a recent recovery. The Chinese e-commerce giant is launching what it claims to be the most powerful AI chip, which is expected to compete with Nvidia and support its expansion of data center capacity.
Other semiconductor stocks, which have seen significant recovery, are expected to see modest declines. ARM Holdings, Intel, and AMD are all expected to fall by more than 1% pre-market. AMD's market value surpassed $1 billion for the first time on Monday.
Grab, an Asian ride-hailing and tech company, is expected to stabilize with a 4.8% gain. The company's CEO, Anthony Tan, reported significant stock purchases to the US Securities and Exchange Commission. Grab's shares had attempted a stabilization move on Monday after a prolonged downturn.
Gamestop, a video game retailer, is expected to see a 4.1% rise due to insider stock purchases.
