Global markets struggled on Wednesday as US equity futures declined following disappointing earnings from Alphabet (GOOGL) and Advanced Micro Devices (AMD). Investors remain cautious amid ongoing trade tensions and a packed week of economic data.
Key Market Developments:
đź”´ US Futures Fall:
- Nasdaq 100 futures down 0.9% as Alphabet and AMD tumble in pre-market trading.
- S&P 500 futures down 0.6%, pressured by tech weakness.
- Dow Jones futures down 0.3% ahead of earnings from major companies.
🔵 European Stocks Mixed:
- Stoxx Europe 600 fell 0.1%, dragged down by tech stocks, despite gains in healthcare.
- Novo Nordisk (NVO) surged on strong guidance.
- Banco Santander (SAN) jumped after record profits and a €10 billion buyback.
🟢 Asian Markets Hold Steady:
- MSCI Asia Pacific Index up 0.8%, but Chinese equities fell after Lunar New Year holidays.
Tech Earnings Disappoint: Alphabet & AMD Drag Nasdaq Lower
- Alphabet (-5% pre-market): Missed Q4 revenue expectations as cloud growth slowed. Heavy AI investments raised concerns.
- AMD (-4.2% pre-market): Weak data center outlook, struggling to compete with Nvidia (NVDA).
- Apple (AAPL -2%): Under pressure after China’s antitrust watchdog signaled a probe into its policies.
🏢 Earnings to Watch Today:
- Uber (UBER), Disney (DIS), Ford (F), Qualcomm (QCOM) report after the bell.
- Amazon (AMZN) earnings due Thursday, a key test for AI-driven stock rally.
Trade War: US-China Tariff Risks Resurface
- Trump administration revoked “de minimis” rule, removing duty-free status for small Chinese imports (<$800).
- US Postal Service suspends inbound packages from China & Hong Kong.
- Markets eye possible escalation if China retaliates with tariffs.
📢 Trump on China:
“There’s no rush to talk to Xi. I’ll speak to him at the appropriate time.”
Other Market Movers
đź’° Gold Hits Record High as investors seek safe havens amid trade tensions.
📉 US 10-Year Treasury Yield Dips after job openings fell to a three-month low.
📉 Oil Prices Drop as trade war concerns outweigh new Iran sanctions.
Key Economic Events to Watch This Week
đź“Š Wednesday: US ISM Services PMI, US Trade Data
🏦 Thursday: UK Interest Rate Decision, Eurozone Retail Sales, Amazon Earnings
📉 Friday: US Non-Farm Payrolls, Unemployment Data, University of Michigan Consumer Sentiment
Market Outlook
- Tech weakness could weigh on broader markets, especially if Amazon disappoints.
- US-China trade risks remain a wildcard, keeping volatility high.
- Fed officials speaking this week may provide clues on interest rate cuts.
Bottom Line: Markets face uncertainty from disappointing tech earnings, trade tensions, and Fed policy outlook. Traders are treading cautiously, awaiting Amazon’s earnings and Friday’s US jobs report for further direction. 🚨
