U.S. Stock Futures Dip on Subdued Earnings Forecasts
U.S. stock index futures declined on Wednesday, led by a pullback in Nasdaq futures as shares of Alphabet and AMD dropped following disappointing earnings projections.
Alphabet, Google's parent company, tumbled 7.5% in premarket trading after reporting a slowdown in cloud revenue growth. AMD lost 8.2% after CEO Lisa Su indicated a decrease in data center sales, a proxy for AI revenue, for the current quarter.
Other sectors also contributed to the losses, with Apple declining 2.5% after Bloomberg News reported a potential antitrust investigation in China. Prominent companies including Walt Disney, Uber, and Bunge are set to announce earnings before market open.
At 04:49 a.m. ET, Dow E-minis decreased 153 points (0.34%), S&P 500 E-minis declined 40.5 points (0.67%), and Nasdaq 100 E-minis fell 227.5 points (1.05%).
Economic data releases on tap include January private payrolls at 8:15 a.m. ET and a survey on U.S. services activity shortly after market open. The critical nonfarm payrolls report for January is expected Friday.
Meanwhile, investors monitor developments on the tariff front. President Trump's reluctance to engage with China's President Xi Jinping on the matter has sparked concerns about a potential trade war. Analysts warn that Trump's tariffs could lead to higher domestic inflation, reducing the likelihood of further interest rate cuts by the U.S. Federal Reserve this year.
Fed officials, including Vice Chair Philip Jefferson and San Francisco Fed President Mary Daly, reiterated the central bank's cautious approach to future rate adjustments. Comments from other Fed heads throughout the day are expected to influence market sentiment.
In other notable market moves, FMC Corp plunged 20.7% on below-estimate revenue forecasts, Chipotle Mexican Grill slipped 6.8% after tepid sales projections, and Tinder-parent Match Group lost 8.9% on weaker revenue estimates.