US Equity Futures Drop Amid Trade War and Earnings Concerns
US equity futures declined as investors navigate trade tensions and anticipated earnings reports from global giants.
NASDAQ 100 Futures Slide
NASDAQ 100 futures fell 0.7% after disappointing results from Alphabet (Google) and Advanced Micro Devices (AMD) in pre-market trading.
S&P 500 Contracts Slip
S&P 500 contracts dipped 0.4%, indicating the market's recent recovery may be short-lived. Uncertainty over the US-China trade dispute persists despite President Xi Jinping's cautious approach.
Disappointing Tech Earnings
Alphabet's missed revenue expectations and AMD's weak data center outlook heightened concerns about the prospects of tech giants driving S&P 500 gains. Amazon's earnings report is scheduled for Thursday.
Haven Assets Gain, Dollar Weakens
The Japanese yen and gold surged on safe-haven demand. The 10-year Treasury yield declined slightly, while the Bloomberg Dollar Spot Index weakened.
Employment Data and Earnings Reports
A report revealed an unexpected increase in US company employment, but uncertainty remains elevated. ISM services data later today will provide insights into the Federal Reserve's rate path. Several companies, including Ford Motor and Qualcomm, are set to release earnings on Wednesday.
European Markets Mixed
The Stoxx Europe 600 fluctuated, with losses in technology companies offsetting gains in healthcare. Banco Santander surged after reporting record profits, while GSK gained on a raised sales forecast. Renault declined following news that Nissan would withdraw from its deal with Honda.
Asian Share Index Rises, China Equities Drop
Asian shares extended gains for a second day, while China's equities declined after Lunar New Year holidays. US Postal Service has temporarily suspended inbound international packages from China and Hong Kong, adding to trade tensions.
Commodities Prices Dip
Oil prices fell due to concerns over the impact of the trade war on global growth, despite reinforced sanctions on Iran.
Key Economic Events This Week
* US trade data, Wednesday
* Eurozone retail sales, Thursday
* UK rate decision, Thursday
* US nonfarm payrolls, unemployment, Friday
* Fed's Michelle Bowman, Adriana Kugler speak, Friday