1. Earnings report of Japanese memory chip giant plunges, with stock prices locked in a limit-down throughout the day, dragging down a collective correction among AI star stocks; 2. Reports suggest a major reversal in the UK fiscal plan, with the market pre-enacting a 'Truss Moment'; 3. Applied Materials fell over 6% after releasing its earnings report; 4. Merck & Co acquired flu drug developer for $9.2 billion.
Cailian Press, November 14 (Editor: Shi Zhengzhi) As the "AI high-flyers" in the Japanese stock market experienced eye-popping declines, coupled with the shock from the UK's 'triple whammy' in equities, currency, and bonds, the US stock market also fell into turmoil before the opening on Friday, led by a decline in tech stocks. Doubts raised by Federal Reserve officials regarding the prospects of a rate cut in December further weighed on market sentiment.
As of press time, Nasdaq 100 Index futures (December 2025 contract) dropped 1.51%, S&P 500 Index futures fell 1.01%, and Dow futures declined 0.62%. Star tech stocks NVIDIA and Tesla both dropped more than 3% in pre-market trading.
Spot gold and Bitcoin also experienced a sharp drop in pre-market trading, with some safe-haven funds flowing into U.S. Treasuries.
(Minute chart of 10-year U.S. Treasury yields, a decline in yield means an increase in Treasury prices)
As the worst-hit star tech stock today, Kioxia, one of the world's top three NAND memory manufacturers, saw its market value evaporate by 23% after publishing its semi-annual report.
(Kioxia daily chart, Source: TradingView)
It should be noted that Japan's stock market adjusts price limits according to share price ranges, meaning Kioxia was effectively locked at the lower limit all day. Even so, Friday’s closing price was still four times that of early September. Meanwhile, SoftBank Group, a shareholder of OpenAI, has fallen nearly 30% from its late October peak. Affected by this, other leading US-listed memory stocks such as SanDisk and Micron Technology also declined in pre-market trading on Friday.
Meanwhile, as news emerged that the UK is considering abandoning income tax hikes, financial markets showed their displeasure towards the Starmer government while also weighing on sentiment in European and even U.S. stock markets. The UK FTSE 100 index fell nearly 2% during the day, and if it does not recover before the close, it will mark the largest single-day drop since April.
(FTSE 100 Index Daily Chart, Source: TradingView)
In the U.S. stock market, as a series of Federal Reserve officials expressed doubts about the need for three consecutive rate cuts, the pricing of the swaps market reflected by the "Fed Watch" has adjusted the probability of a rate cut on December 9-10 to "fifty-fifty." A month ago, the predicted probability of a December rate cut was still 95%. On Friday, three Federal Reserve officials will also make speeches, including Schmid, who has voting rights this year.
(Source: CME)
Aneeka Gupta, Head of Macro Research at Wisdom Tree (Europe), commented that when setbacks occur in the market, tech stocks are hit the hardest because their valuations are the most "bubble-like." When the market is concerned that the Federal Reserve might adopt a more hawkish stance, sectors with the longest duration suffer the most severe impact.
Other Market News
[Applied Materials fell over 6% after releasing earnings report]
Before the market opened on Friday, Applied Materials, a U.S. semiconductor equipment giant, fell over 6% after releasing its earnings report. Although the report itself showed better-than-expected data, the company stated that due to the tightening of U.S. semiconductor export controls, its revenue from China was severely impacted, which made investors increasingly worried about the company’s earnings prospects.
[Google rejects EU Commission's business split requirement]
Google announced on Friday that it would appeal against the European Commission's antitrust ruling decision. The company refused the European Commission's request to split part of its business.
In September this year, the European Commission fined Google €2.95 billion ($3.4 billion). This decision stemmed from an investigation that began four years ago following a complaint by the European Publishers Council. In 2023, the European Commission officially accused Google of favoring its own platforms and squeezing out competitors in advertising services. The European Commission required Google to propose measures by November to address conflicts of interest in the ad tech supply chain and suggested that Google sell off parts of its business.
[Merck & Co acquires Cidara Therapeutics for $9.2 billion]
Merck & Co announced on Friday that it will make an all-cash tender offer to acquire Cidara Therapeutics, a biotech company specializing in the development of influenza drugs, at $221.50 per share. The offer represents more than double the closing price on Thursday, bringing the total value of the transaction to approximately $9.2 billion. Following the announcement, shares of Cidara Therapeutics surged over 100% in pre-market trading.
Other notable events/data tonight
November 14
22:20 Atlanta Fed President Bostic delivers a speech
23:05 Kansas City Fed President Schmid delivers a speech
November 15
03:30 Dallas Fed President Logan participates in a dialogue event
04:20 Atlanta Fed President Bostic participates in another dialogue event
