AM Markets Need to Know: Wood warns on chip cycles, FERC rejects PJM plan, and more

Stock index futures were mixed on Tuesday as technology stocks came under pressure while investors awaited quarterly earnings from major banks.

Here are the five news items investors should watch:

Cathie Wood warns on memory-chip volatility: ARK Investment Management cofounder Cathie Wood is avoiding traditional memory-chip makers, warning that additional Chinese production capacity could intensify the industry's boom-and-bust cycles. Although demand for high-bandwidth memory remains strong and supply is tight, new competitors could increase price swings, putting semiconductor stocks at risk if supply growth outpaces demand.

Asian chip stocks slide on U.S. losses: Asian technology shares fell Tuesday after semiconductor stocks weakened on Wall Street, extending pressure across AI-linked companies. SK Hynix (SKHY) dropped about 8%, Samsung Electronics (SSNLF) lost roughly 7%, and SoftBank Group (SFTBY) declined nearly 9%. Equipment suppliers Tokyo Electron (TOELF) and Advantest (ATEYY) also fell, while Micron Technology (MU) slid 3.9% Monday.

FERC rejects key elements of PJM's grid plan: The Federal Energy Regulatory Commission rejected most of PJM Interconnection's proposal for connecting data centers and other large electricity users to the grid, Utility Dive reported Monday. FERC raised concerns that proposed interim service and bring-your-own-capacity rules could intrude on state authority over retail rates and discriminate against large loads. The decision adds uncertainty for data center developers and power providers planning infrastructure to support rising electricity demand.

Bank of America sees risks for gold prices: Bank of America remains cautious on gold despite positive exchange-traded fund demand over the past two months, forecasting that prices will struggle to sustain levels above $4,000 an ounce over the next three months. Analysts said ETF inflows alone may not offset weak physical demand. A price decline could also prompt investors to liquidate holdings, adding selling pressure to the market.

Trump's Russian diesel deal may have limited impact: President Trump's agreement for Russia to supply diesel to the U.S. and global markets is unlikely to materially reduce American fuel prices, analysts said Monday. The initial 300,000 metric tons equates to roughly 75,000 barrels per day, a small amount relative to global diesel demand of about 28 million barrels per day. Further deliveries depend partly on the condition of Russia's war-damaged refineries, raising doubts about whether the larger promised volumes will materialize.