Tuesday's Pre-Market: Magnificient 7, Capital One, Sanctions on Chinese firms, Attacks in Red Sea, and Singapore AI ambitions

Magnificent 7 profits now exceed almost every country in the world. Should we be worried?

The so-called “Magnificent 7” U.S. tech behemoths encompass Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla.
In a research note Tuesday, Deutsche Bank analysts highlighted that the Magnificent 7′s combined market cap alone would make it the second-largest country stock exchange in the world.
However, this level of concentration has led some analysts to voice concerns over related risks in the U.S. and global stock markets.

Capital One Financial is set to acquire Discover Financial Services in a $35.3 billion all-stock deal.
The Wall Street Journal reported that Capital One, which already uses Visa and Mastercard networks, plans to keep the Discover brand.
The merger of the two companies, which are among the largest credit card issuers in the U.S., would expand Capital One’s credit card offerings and its deposit base.

The U.S. is considering slapping sanctions on Chinese companies it believes are helping Russia fuel its war in Ukraine, members of Congress told CNBC.
Lawmakers may “very soon” follow similar proposals from the EU, in what would mark the first direct penalties against Beijing over its alleged military support for Moscow.
“China has to understand that the same kinds of sanctions which are beginning to really take hold in Russia ... can also be applied to China,” Senator Gerald Connolly said.

The Iran-backed Houthi group on Sunday damaged a ship offshore Yemen, forcing its crew to abandon the vessel in the latest escalation of maritime tensions that have disrupted trade routes in the Red Sea.
“Vessel at anchor and all crew are safe,” the UKMTO said.
“The ship suffered catastrophic damage and came to a complete halt,” Houthi Spokesperson Yahya Sare’e said. “As a result of the extensive damage the ship suffered, it is now at risk of potential sinking in the Gulf of Aden.”

Singapore will pump more than 1 billion Singapore dollars (about $743 million) over the next five years to further boost AI capabilities, said Deputy Prime Minister Lawrence Wong in his Budget speech on Friday.
“The SG$1 billion allocation towards AI which also includes secure implementation of the National AI Strategy 2.0 demonstrates the government’s commitment towards fostering a trusted and responsible AI ecosystem,” said Sujith Abraham, senior vice president and general manager of ASEAN at Salesforce.