Top 5 Essential Insights Before the Stock Market Opens Today

Market highlights for May 8, 2025

U.S. stock futures are surging following President Donald Trump's announcement of a comprehensive trade agreement with the United Kingdom. Alphabet (GOOGL) shares are recovering in early trading after a sharp decline sparked by concerns over AI impacting its search engine dominance. Semiconductor stocks are rallying as the Trump administration signals plans to roll back certain AI chip export restrictions. Additionally, AppLovin (APP) stock is climbing after reporting strong quarterly earnings and revealing the sale of its mobile gaming division. Here’s what investors should focus on today.

1. U.S. Stock Futures Climb on Trade Breakthrough and Chip Policy Updates

Investors are optimistic as U.S. stock futures point upward, boosted by the new trade deal with the U.K. and anticipated easing of AI chip export limits. Futures for the Nasdaq, S&P 500, and Dow Jones Industrial Average have increased by approximately 1.2%, 0.9%, and 0.7%, respectively, following gains in the previous session after the Federal Reserve maintained steady interest rates. Bitcoin (BTCUSD) is rallying near $99,500, while 10-year Treasury yields edge higher. Oil prices are rising, contrasting with a dip in gold futures.

2. President Trump Declares Historic U.S.-U.K. Trade Agreement

President Trump announced via Truth Social that the United States has secured a "full and comprehensive" trade deal with the United Kingdom, marking the first major trade pact since his administration’s tariff implementations that unsettled markets. This trade breakthrough arrives as U.S. and Chinese officials prepare for talks amid ongoing trade tensions. Trump plans to detail the agreement during a 10 a.m. ET press conference from the Oval Office.

3. Alphabet's Stock Rebounds Following AI-Related Market Concerns

Alphabet (GOOGL) shares are climbing by 2% in premarket trading after a steep drop fueled by reports that Apple (AAPL) is exploring AI-driven search features for its Safari browser, potentially reducing reliance on traditional search engines like Google. This news intensified fears about AI disrupting Alphabet's core search business. Alphabet's stock had fallen over 7% the previous day and is down 20% year-to-date.

4. Semiconductor Stocks Rally as Trump Moves to Reverse Biden-Era Export Restrictions

Shares of leading chipmakers are gaining momentum in premarket trading amid indications that the Trump administration intends to revoke Biden-era restrictions on AI chip exports set to take effect mid-May. The "AI diffusion rule," designed to tighten controls on American AI hardware sales abroad, may be replaced with new guidelines while current export limits remain enforced. Notable gains are seen in Advanced Micro Devices (AMD), Nvidia (NVDA), Broadcom (AVGO), and Intel (INTC).

5. AppLovin Stock Surges on Strong Earnings and Strategic Mobile Gaming Sale

AppLovin (APP) stock jumps 13% in premarket trading after the company reported quarterly results exceeding expectations, with revenues rising 40% year-over-year to $1.48 billion and profits increasing to $1.67 per share from $0.67. Additionally, AppLovin announced the sale of its mobile gaming business to Tripledot Studios for $400 million in cash, retaining a 20% stake in the business.

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