US EQUITY OPEN: Tech outperforms as NVDA/MSFT announce Windows AI superchip, but risk-off seen amid US/Iran reporting

OPEN: US indices opened mixed, as downside was seen in US equity futures, which has carried into cash trade, just prior to the open as Tasnim reported that Iran has stopped exchanging messages with the US via mediators, and it will "completely" block the Bab al-Mandab Strait and Strait of Hormuz due to Israeli actions. As such, geopolitical risk-off trade was seen, with upside in oil and Dollar, and downside in stocks/Treasuries and gold. Sectors are mainly in the red, with only Technology and Energy in the green, with the former supported by Nvidia (NVDA) and Microsoft’s (MSFT) unveiling Windows AI superchip. Consumer Discretionary lags. In FX, the Dollar is firmer, with CHF and NZD lagging, with focus on USD/JPY which hovers around 159.70 with focus on 160 to the upside in case of any intervention measures or jawboning by Japanese officials. Treasuries are lower, as are precious metals, while WTI sees gains of c. USD 5.50/bbl and Brent USD 4.10/bbl. On US/Iran, attention is on any response from Trump and the US following the Tasnim report. Scheduled events for the rest of the day are pretty thin aside from ISM Manufacturing PMI at the top of the hour. Ahead of it, S&P Global Manufacturing PMI was revised up to 55.1 from  54.5, but beneath the expected 55.3.

STOCK SPECIFICS:

• Nvidia (NVDA) and Microsoft (MSFT) unveiled RTX Spark, Windows AI superchip, to bring AI directly to personal computers. As a result, chipmaking competitors QCOM, INTC, and AMD fell, while Cos. who work with NVDA's computer chip gain DELL, HP, ARM.
• Nutanix (NTNX) announces Nvidia certification of Nutanix Unified Storage solution
• Cadence (CDNS) announces fully autonomous virtual agentic AI design engineer
• Hewlett Packard Enterprises (HPE) introduces CPU server with Nvidia Vera CPU.
• Berkshire Hathaway agreed to buy Taylor Morrison Home (TMHC) for USD 8.5bln & will pay USD 72.50/shr; closed Fri. at 58.50.
• FedEx (FDX) announced the completion of its spin-off of $FDXF, FedEx Freight Holding
• Yum Brands (YUM) is in talks to sell its Pizza Hut brand to LongRange Capital
• Barclays initiated coverage at IBM (IBM) with an 'Overweight' rating.
• People Inc preparing to buy MGM Resorts (MGM) in a deal that values it at over USD 18bln.
• Summit Therapeutics (SMMT) phase 2 Chinese trial showed Cos. experimental lung cancer drug reduced the risk of death by 34%.