US Futures Edge Lower as Trade War Intensifies, Corporate Earnings Disappoint

US stock futures retreated on Wednesday amid escalating trade tensions between the US and China, as well as disappointing corporate earnings reports.

Tech-Heavy Nasdaq 100 Futures Lead Declines

The tech-heavy Nasdaq 100 futures (NQ=F) fell 0.7%, leading the declines. This slide was fueled by weak earnings from Alphabet (GOOG, GOOGL) and chipmaker AMD (AMD).

S&P 500 Futures Drop 0.5%

S&P 500 futures (ES=F) dropped 0.5%, impacted by disappointing earnings from Google parent Alphabet and AMD.

Dow Jones Industrial Average Futures Slip 0.2%

Dow Jones Industrial Average futures (YM=F) slipped 0.2%, following gains in the previous trading session.

Trade War Heats Up

The Trump administration's 10% tariffs on Chinese goods prompted retaliation from Chinese leader Xi Jinping, who announced tariffs on 80 US products. Trump downplayed these retaliatory measures, suggesting an end to the trade war may not be imminent.

Alphabet Faces Trade War Crosshairs

Alphabet finds itself in the crosshairs of the trade war. China launched an antitrust probe into Google, seen as a retaliatory move against Trump's tariffs. The tech giant's earnings results further spooked investors, leading to a 7% drop in share price after hours.

AMD Earnings Disappoint

AMD's earnings also fell short of expectations. Despite exceeding revenue estimates, the company's CEO forecast declining data center sales, sending shares down more than 8% in after-hours trading.

Chipotle Meets Expectations but Guides Conservatively

Chipotle (CMG) met earnings expectations but its conservative guidance caused a 5% decline in share price after market close.

Disney to Report Earnings

Disney (DIS) is scheduled to report earnings on Wednesday, with headwinds expected for its theme parks and Disney+ streaming platform.

Toyota Raises Profit Forecast

Toyota Motor (TM) raised its full-year operating profit forecast by 9%, expressing confidence in its ability to navigate potential US tariffs. The automaker also plans to establish an EV and battery production facility in Shanghai, with production slated for 2027.

Gold Hits Record High

Gold (GC=F) surged to a record high, reaching nearly 1% as the US-China trade war increased demand for safe-haven assets. The price of bullion exceeded $2,854 an ounce, hitting an all-time peak.

Asian Stocks Mixed

Asian stocks were mixed on Wednesday, with some markets falling in response to the escalating trade tensions. The CSI 300 Index (000300.SS) lost 0.6%, while the Nikkei 225 (^N225) declined 0.2%.