US Equity Futures Drop Amid Trade War Concerns and Earnings Disappointments

Market Overview:

US equity futures declined on Wednesday as investors grappled with ongoing trade tensions and mixed earnings reports from major companies.

Futures Performance:

* Nasdaq 100 futures plunged 0.9% following weak results from Google parent Alphabet Inc. and Advanced Micro Devices Inc.
* S&P 500 futures slid 0.5%, suggesting the recent Wall Street rebound may be short-lived.

Trade War and Tariffs:

* The first volleys in the latest US-China trade war indicate a more cautious approach by Xi Jinping, but tariff risks remain prominent.

Disappointing Earnings:

* Alphabet missed analysts' revenue estimates as cloud business growth slowed, raising concerns over its AI investments.
* AMD's underwhelming outlook for its data center business heightened unease about megacap tech companies.

Currency Markets:

* The yen gained against the US dollar, while gold surged to a record high on haven demand.
* The 10-year Treasury yield dipped, and the dollar index extended losses.

Economic Data:

* US job openings fell in December, reaching a three-month low.
* ISM services data is expected to show slower growth in January due to weather disruptions.

European Markets:

* The Stoxx Europe 600 fluctuated, with technology declines offset by gains in healthcare.
* Novo Nordisk A/S provided positive guidance, lifting regional companies.

Asian Markets:

* Asian shares rose for a second consecutive day, with China lagging behind after Lunar New Year holidays.
* The US Postal Service temporarily suspended inbound international packages from China and Hong Kong amid trade tensions.

Key Events:

* US trade data (Wednesday)
* Eurozone retail sales (Thursday)
* UK rate decision (Thursday)
* US nonfarm payrolls (Friday)

Market Movers:

* Banco Santander SA surged on record profits and a €10 billion buyback announcement.
* Renault SA declined on reports that its stake in Nissan Motor may be impacted.
* Bitcoin and ether advanced, buoyed by crypto asset purchases.

Additional Information:

This article is provided by Bloomberg Automation. The views expressed in this article are those of the author and do not necessarily reflect the views of Bloomberg L.P.