5 Things to Know Before the Stock Market Opens

Stock futures are pointing slightly higher after the U.S. and EU reach a trade deal; Samsung will produce AI chips for Tesla (TSLA) at a Texas facility in a $16.5 billion deal; Alibaba (BABA) unveils new AI glasses set to rival those from Meta Platforms (META); and Nike (NKE) shares are moving higher after JPMorgan upgrades the footwear maker’s stock on momentum for global orders. Here’s what investors need to know today.

1. US Stock Futures Point Higher on US-EU Trade Agreement

U.S. stock futures are moving higher as investors digest the latest trade deal between the U.S. and EU, which sent global stocks mostly higher. Nasdaq and S&P 500 futures are up 0.4% and 0.2%, respectively, after the indexes ended last week at fresh all-time closing highs. Futures associated with the Dow Jones Industrial Average are 0.1% higher as the index hovers near its all-time high set last December. Bitcoin (BTCUSD) is edging lower at just below $119,000. The 10-year Treasury note yield is ticking higher. Oil futures are trading higher by more than 1%. Gold futures are little changed. 

2. US, EU Agree to Trade Deal

The U.S. and the European Union reached a trade deal Sunday that will set a 15% tariff on goods from the 27-nation bloc, half the rate that was set to take effect Aug. 1. President Donald Trump and European Commission President Ursula von der Leyen announced the deal, which also includes an EU commitment to purchase $750 billion worth of U.S. energy and invest $600 billion more in the country than current levels. The EU will not charge a tariff on U.S. goods.

3. Samsung, Tesla Ink $16.5B AI Chip Deal

Tesla (TSLA) CEO Elon Musk announced in a post on his X network that Samsung Electronics will produce artificial intelligence semiconductors for the automaker in a new Texas facility. Samsung had disclosed the deal to make the AI6 chip for a “large global company” was worth more than $16.5 billion. Musk said that Samsung is currently making the AI4 chip for Tesla, while Taiwan Semiconductor Manufacturing (TSM) will make the AI5. Tesla shares are moving nearly 2% higher in premarket trading.

4. Alibaba Unveils AI-Powered Smart Glasses to Rival Meta’s

Alibaba (BABA) unveiled a pair of AI-powered smart glasses as the Chinese e-commerce giants seeks to compete with the likes of Meta Platforms (META) in the wearable devices market. Alibaba’s Quark AI Glasses “support hands-free calling, music streaming, real-time language translation, and meeting transcription,” the company said. Meta announced it would release AI-powered glasses this summer with sunglasses maker Oakley. U.S.-listed shares of Alibaba are 1.5% higher in premarket trading.

5. Nike Stock Jumps on JPMorgan Upgrade

Nike (NKE) shares are about 4% higher in premarket trading after JPMorgan analysts upgraded the footwear maker’s stock to “overweight” on momentum in global orders. JPMorgan also raised its earnings per share estimates for Nike’s fiscal 2026 and 2027 for the first time since downgrading the stock to “neutral” in June 2024. Late last month, Nike stock soared after it beat fiscal fourth-quarter estimates amid CEO Elliott Hill’s turnaround plan to return to sales growth.