US Open: S&P 500 Tries to Halt the Decline 🗽 GE Vernova Falls 5%

U.S. index futures are edging lower after Wednesday’s market open. The earlier rebound in semiconductor stocks is losing momentum, while oil prices have reached their highest levels in around six weeks. Investors are primarily awaiting earnings from Alphabet, Tesla, Intel, and IBM, which could set the direction for the broader technology sector after the U.S. session. The market will closely assess whether record AI spending is already translating into faster cloud growth, stronger margins, and greater demand for infrastructure.

• S&P 500 futures are down around 0.1%, while Nasdaq 100 futures are falling approximately 0.4%.
• Nvidia is losing just under 1% and is underperforming some of the other Magnificent Seven stocks.
• Micron is down around 3%, SanDisk is losing 2.2%, and Marvell is falling 2.5%, while Super Micro Computer is gaining around 1% after raising its gross margin outlook and reporting a record backlog.
• Rising oil prices are adding pressure to the indices amid geopolitical tensions surrounding the war between Israel and Iran.
• Alphabet remains around 13% below its May record high, making Google Cloud results and management’s commentary on AI spending particularly important for market sentiment.
• Investors expect Alphabet’s and Intel’s reports to show how rising artificial intelligence spending is reshaping the competitive landscape across the technology sector.
• Tesla’s results should provide a clearer picture of whether its automotive business can finance the development of Robotaxi, Optimus, and AI infrastructure.

US500 and SanDisk charts (D1 interval)

The lower wick on the US500 candlestick suggests that buyers are attempting to halt the weakening momentum in the U.S. equity market. A break above 7,550 points will be crucial, as it could open the way toward a test of 7,600 points and the all-time highs. An important support level is located around 7,470 points, where declines were halted during each of the previous three sessions.

Source: xStation5

Shares of one of the key memory-chip suppliers are trading more than 30% below their all-time high and are attempting to move back above the EMA50, shown by the orange line, near $1,700. An important support level is located around $1,300, reinforced by two significant previous price reactions.

Source: xStation5

Company news

• Microsoft, Alphabet, Amazon, Meta, Apple, and Tesla shares are trading slightly higher in premarket trading, while Nvidia remains close to the previous session’s closing level.
• AT&T is gaining around 5% after its second-quarter results exceeded analyst expectations, supported by stronger wireless subscriber additions and better-than-expected earnings.
• Verizon is losing more than 2% after second-quarter revenue came in below market consensus.
• Arrowhead Pharmaceuticals is rising around 17% following positive clinical trial results for its treatment targeting metabolic dysfunction-associated steatohepatitis, or MASH.
• Cal-Maine Foods is gaining approximately 6% after reporting better-than-expected quarterly results.
• Crocs and Coinbase shares are under pressure after Raymond James downgraded both companies, citing intensifying competition.
• Digital Turbine is rising around 5% after Benchmark initiated coverage with a Buy rating and a $15 price target.
• DocuSign is gaining approximately 0.4% after JMP Securities upgraded the stock to Buy.
• EQT is rising around 1.7% after second-quarter gas production exceeded expectations, although the company lowered its capital expenditure guidance.
• Reddit is losing around 4% following reports that the platform may restrict Google’s access to its content for AI model training.
• Renewable energy stocks are gaining after the U.S. Senate approved new tax incentives supporting the sector’s development.
• Joby Aviation is rising around 2% after finalizing an agreement with Virgin Atlantic to launch an electric air-taxi service in the United Kingdom.
• Summit Therapeutics is falling around 3% after clinical trial results failed to meet investors’ elevated expectations.
• Super Micro Computer is gaining around 12% after a business update in which the company raised its gross margin outlook and reported a record order backlog.

Despite attempts to halt the decline, semiconductor stocks continue to underperform other companies in the Nasdaq 100. The industrial sector is performing considerably better, while Cisco shares are gaining more than 1%.

Source: XTB Research

GE Vernova results disappoint analysts

GE Vernova is falling around 5% following its earnings report, as adjusted EBITDA missed market expectations despite higher sales. The company delivered very strong results for the second quarter of 2026 and raised its full-year revenue and cash flow guidance. Despite a record order backlog and strong demand for energy infrastructure, the shares declined in premarket trading as investors focused on the quality of the company’s cash generation and its demanding valuation.

Key facts

• Revenue increased 22% year over year to $11.1 billion, while net income rose to $649 million from $492 million a year earlier. Diluted EPS climbed 33% to $2.47.
• Orders grew organically by 88% to a record $24.2 billion, while backlog reached $176.3 billion.
• The company raised its 2026 revenue guidance to $45.5–46.5 billion and increased the midpoint of its free cash flow outlook by $5 billion.
• Despite the strong report, shares fell around 4–5% before the market opened because adjusted EBITDA slightly missed expectations and investors scrutinized the source of the record cash flow.

Record backlog confirms the boom in energy infrastructure and data centers

Demand was the strongest positive surprise. Orders increased organically by 88% to $24.2 billion, driven primarily by the Power and Electrification segments. The company’s backlog rose to $176.3 billion, equivalent to almost four times its projected revenue for the current year.

Management also reported that data center-related orders have exceeded $5 billion since the beginning of the year, more than twice the total recorded for the whole of 2025. GE Vernova expects to have at least 125 GW of gas turbine equipment under contract by year-end, while annual production capacity is projected to rise from around 20 GW currently to 24 GW in 2028 and 30 GW in 2030.

Why are the shares falling despite higher guidance?

Investors’ main concern is the quality of the company’s cash flow. Free cash flow reached $9.9 billion in the first half of the year, already representing around 82% of the new full-year guidance. At the same time, inflows from contract liabilities reached as much as $13.7 billion, exceeding the company’s total operating cash flow. This means that a significant portion of the cash came from customer advance payments for future turbine deliveries and manufacturing-slot reservations rather than from completed contracts.

In addition, although revenue exceeded Wall Street expectations, adjusted EBITDA came in slightly below consensus. After the stock’s very strong rally in recent months, investors were effectively expecting a near-perfect report. The market is also focusing on continued losses in the wind segment, the potential impact of tariffs, and the company’s demanding valuation despite the latest correction.

Source: xStation5