Key Points To Watch Out For:
- Tesla shares fall on tension between Trump and Elon Musk
- Robinhood and AppLovin fall out of the S&P 500
- MP Materials rises 2% on optimistic China talks
Tesla (TSLA): pressure due to dispute between Musk and Trump
Tesla shares are down in pre-market trading as the market remains focused on new developments in the public feud between Elon Musk and President Trump. The dispute, which has grown more intensely in recent days, has caused volatility in the stock, with sharp declines on Thursday and a slight rebound on Friday. Investors fear potential spillover effects on Musk’s relationship with government agencies and federal contracts.
Intuitive Machines, AST SpaceMobile (ASTS), Rocket Lab (RKLB): rise due to space tensions
The Musk-Trump conflict has also driven other stocks in the space sector. Shares of Intuitive Machines, AST SpaceMobile and Rocket Lab are up in premarket trading, benefiting from fears of a potential impact on SpaceX and its missions with NASA. Although Musk withdrew his threat to halt operations, the uncertainties have led to a rotation toward alternative technologies in the aerospace industry. In a related development, United Airlines disabled Starlinkinternet connectivity on its flights, citing technical issues.
Robinhood (HOOD) and AppLovin (APP): hit by exclusion from the S&P 500
Robinhood and AppLovin were seen as probables for entry into the S&P 500 in the quarterly rebalancing, but the index made no membership changes. Shares of both companies are down more than 5% in premarket trading, reflecting the market’s disappointment. This exclusion could limit the technical demand that index entries by passive and institutional funds typically generate in the short term.
MP Materials (MP): rebound on optimism in negotiations with China
US rare earth producer MP Materials is up 2% before the open as the US seeks to ease Chinese exports of strategic minerals. The resumption of trade negotiations is fueling expectations of a more supportive environment for the supply of critical metals, which are key to industries such as defense, batteries, and green technology.
AlphaWave IP (UK:AWE): Qualcomm (QCOM) pushes ahead with acquisition
British semiconductor company AlphaWave surges in London after qualifying announced that Qualcomm has agreed to purchase it for approximately $2.4 billion. The deal aims to strengthen Qualcomm’s portfolio in high-performance chip design at a time when artificial intelligence applications demand greater processing power.
EchoStar (SATS): Plummets amid bankruptcy risk
EchoStar faces a sharp 11% drop in premarket trading after it was disclosed that the company is exploring bankruptcy protection. The satellite and mobile connectivity company is facing regulatory concerns related to spectrum licenses, which have weakened its financial position. This uncertainty is puttingdownward pressure on the stock and could complicate its operations in the short term.
