US EQUITY OPEN: Stocks open in the green with Nasdaq leading on Tech upside

OPEN: Stocks have opened higher on Thursday, with the Nasdaq outperforming. Technology is leading the gains alongside Industrials as both continue to benefit from the AI theme. Communication Services, however, is lagging as fresh capex concerns surrounding Meta (META) weigh on the sector. Reuters reported that Meta has signed long-term supply agreements for memory, networking equipment and flash storage, reinforcing expectations of elevated AI investment. The report is supporting memory names, with the Memory ETF (DRAM) up around 6.6%. Consumer Staples are also underperforming after PepsiCo (PEP) earnings weighed on the sector, as they warned that input cost inflation is expected to be higher in the second half of the year than in H1, also pressuring Coca-Cola (KO).

Energy prices are lower despite fresh military exchanges between the US and Iran overnight. The downside in crude oil was driven by comments from President Trump, who said Iran had reached out and wanted to make a deal. While the IRGC threatened further attacks on US military bases should aggression continue, dampening the immediate risk of attacks on energy infrastructure.

In FX, the New Zealand Dollar is the clear outperformer as the post-RBNZ rally extends following this week's hawkish rate hike, while the Dollar lags across the G10 complex. Treasuries are firmer across the curve as lower oil prices ease inflation concerns, with the decline in yields also supporting precious metals, leaving both gold and silver higher.

Economic data has generated little market reaction. China's overnight inflation data came in softer than expected, while US jobless claims declined, reinforcing the narrative of a still-resilient labour market. Looking ahead, attention turns to this afternoon's USD 22bln 30-year Treasury bond auction. Delta Air Lines (DAL) unofficially kicks off earnings season tomorrow, before reporting activity accelerates next week with the major US banks beginning to release results from Tuesday.

• AstraZeneca (AZN): Wainua failed to meet its target in a Phase III trial
• Meta (META) signs long-term supply agreements for Memory, networking gear, and flash storage, according to Reuters citing a memo Plans to double computing capacity to 14 GW next year. Plans to start manufacturing its Iris AI chip in September.
• Micron (MU) raises planned US fab and tech investment to more than USD 250bln through 2035; increased investment is expected to support the long-term goal of producing 40% of DRAM in the US.
• Costco Wholesale (COST): Total comparable sales growth in June eased from May.
• PepsiCo (PEP): Earnings weighed by tightening consumer budgets; expects higher input cost inflation in H2 versus H1
• Levi Strauss & Co. (LEVI): Q3 and FY26 outlook disappointed
• Cerebras Systems (CBRS): Announced a major expansion of its European AI infrastructure
• International Business Machines (IBM) / Microsoft (MSFT): Starbucks is reportedly developing in-house AI tools that could replace some software applications it currently buys from companies such as Microsoft and IBM
• Enovix (ENVX): Appointed former Apple Director of Product Operations Michael Vyvoda as COO
• AZZ (AZZ): EPS and revenue beat
• FuelCell Energy (FCEL): Announced a collaboration with Siemens to accelerate the deployment of fuel cell-based distributed power generation
• Salesforce (CRM): Downgraded at KeyBanc to 'Sector Weight' from 'Overweight'
• Paramount Skydance (PSKY): Downgraded at Arete to 'Sell' from 'Neutral'