US Stock Futures Edge Higher Amid Tech Spending Jitters and Trump's Economic Policies
US stock futures are trending upward as markets navigate concerns related to Big Tech's AI investments and President Trump's economic initiatives.
Tech Sector Performance
Futures tied to the tech-heavy Nasdaq (NQ=F) rise 0.3%, while the benchmark S&P 500 futures (ES=F) gain 0.3%. Dow Jones futures (YM=F) inch up 0.2%.
Despite a decline in its stock price on Tuesday, Alphabet (GOOG, GOOGL) remains flat in after-hours trading. Investors are cautious about the tech giant's AI spending strategy following a dip in cloud revenue.
Conversely, Nvidia has benefited from Big Tech's AI investment plans, with its shares surging 6% on Tuesday and holding steady after hours.
Earnings Focus
Amazon (AMZN) is poised to release earnings after market close on Thursday. Investors are closely monitoring the company's results after Google's disappointing cloud sales performance.
Trump's Tariffs
President Trump's tariffs continue to impact US businesses. Ford (FORD) experienced a dip in after-hours trading despite surpassing earnings expectations due to concerns over the impact of tariffs in Q1.
Chipotle also acknowledged its tariff exposure, indicating that it will absorb additional costs, affecting its bottom line by 10%.
Federal Reserve Stance
Federal Reserve officials reiterate their "wait and see" approach to lowering interest rates amid concerns that the new tariffs could fuel inflation.
Commodities Market
Gold (GC=F) scales record highs for the fifth consecutive day. The asset is in high demand as investors seek stability amidst escalating trade tensions. Futures are trading at $2885 per ounce, approaching the $2905 high set earlier in the day.
Oil Price Rebound
Oil prices recover from losses after Saudi Arabia raises March oil prices. Brent crude futures (BZ=F) climb 14 cents to $74.75 a barrel, while West Texas Intermediate (CL=F) crude gains 18 cents to $71.21 a barrel.