Market Brief: US futures flat, persistent momentum in semiconductors

Semiconductors and tech sector

• Applied Materials: The AI chip equipment supplier posted solid revenue forecasts for its fourth quarter. However, the stock faces pressure as investors maintain elevated expectations.
• SanDisk: Shares surged +13.67% following its Investor Day. Management projected the global NAND memory market to surpass $300 billion in 2026 and $500 billion in 2027, with tight supply expected through 2028 and strong revenue growth through 2030.
• SMIC: The Chinese semiconductor foundry reported a sharp increase in second-quarter revenue and profit.

US trade policies

• Tariffs on foreign drones: The Trump administration signed a Section 232 proclamation imposing tariffs on imported unmanned aircraft systems and key components.
• Duty structure: A 100% duty applies to heavy industrial and military drones (over 25 kg or equipped with thermal imaging) and docking stations, while smaller commercial and recreational drones face a 25% tariff. The measure aims to reduce foreign dependency and boost domestic output.

What to watch today

• US futures stance: S&P 500 and Nasdaq 100 futures are virtually flat, while Dow Jones futures show a mild pull-back of 0.1% (-72 points).
• Market sentiment: Index traders continue to digest cooling inflation figures alongside tech earnings to define intraday bias.