Drone concept stock UMAC surged over 11% in pre-market trading, Ondas rose nearly 3%, as the US will impose tariffs on imported drones and components; SanDisk continued to rise over 2%, expecting "mid-to-high double-digit" revenue growth in the next three years; Reddit jumped over 11% as the company was included in the S&P 500 index; Applied Materials fell more than 5% after earnings.

Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.