Premarket movers: Alibaba slides on discounted share sale, chipmakers dip

Investing.com -- S&P 500 and Nasdaq futures fell Monday as investors braced for a heavy week featuring potential new U.S. sanctions on Iran, Federal Reserve Chair Kevin Warsh’s Jackson Hole address, and quarterly results from Nvidia.

The U.S. is preparing sanctions targeting Iran’s trade partners, in what officials have called "the greatest financial offensive ever," with Treasury Secretary Scott Bessent set to hold a press conference Monday afternoon.

At 06:33 ET, Dow E-minis were down 0.05%. S&P 500 E-minis fell 0.2%, while Nasdaq 100 E-minis dropped 0.6%.

Nvidia, the world’s most valuable company, reports earnings Wednesday, with investors watching for any signs of slowing growth that could revive concerns over stretched AI valuations. Bloomberg News reported Saturday that some of Nvidia’s largest customers were told prices for servers containing its AI chips would rise by more than 15% in many cases.

Megacap trading was mixed premarket: Apple rose 0.4%, and Nvidia gained 0.1%, while Alphabet slipped 0.3%. Most chipmakers declined, with Sandisk down 5%, Seagate off 3.2%, and Coherent down 4.7%.

Alibaba’s U.S.-listed shares dropped 3.4% after the Chinese e-commerce giant launched a $10.2 billion share sale at a steep discount to fund its AI investments, adding to broader investor unease over how AI spending is straining hyperscalers’ free cash flow.

Birkenstock gained over 3% premarket, rebounding from near its 52-week low as investors reassessed the stock following a secondary offering and subsequent selloff in mid-August. The move follows last week’s fiscal third-quarter results, which showed revenue of €719.5 million, above forecasts, alongside raised full-year revenue growth guidance of 15% in constant currency and higher adjusted EBITDA guidance. Earnings per share came in slightly below consensus. An ongoing accelerated share buyback program is also supporting the stock.

Elsewhere, PulteGroup gained 2.1% after Wolfe Research upgraded the homebuilder to "Outperform" from "Peerperform," citing superior earnings durability versus peers. Wolfe noted PulteGroup’s 2026 EPS estimate had been cut just 2.7% from its start-of-year forecast, the smallest reduction in its homebuilder coverage, compared with a 21.4% average cut across peers.

Jersey Mike’s Subs also rose slightly after at least four brokerages initiated coverage with mostly bullish ratings as the post-IPO quiet period ended. The sandwich chain’s IPO raised about $1 billion, pricing at $23 per share, the midpoint of its marketed range.

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