US Stock Futures Dip Amid Escalating Trade War with China
US stock futures declined as the Trump administration's trade dispute with China intensifies and investors analyze corporate earnings reports.
* Dow Jones futures (YM=F) remained largely unchanged, while S&P 500 futures (ES=F) dropped by approximately 0.2%, and Nasdaq futures (NQ=F) fell by 0.3%.
Trade War Impacts
* Trump imposed 10% tariffs on Chinese goods overnight, leading to retaliatory tariffs on 80 US products by Chinese leader Xi Jinping.
* Trump's lack of urgency in resuming talks with Xi suggests the trade war resolution is not imminent.
Earnings Reports
* Alphabet (GOOG, GOOGL):
* Beat on earnings and met revenue expectations.
* Declining cloud sales and increased spending spooked investors.
* Shares fell 7% after the earnings announcement.
* AMD (AMD):
* Surpassed revenue estimates, but CEO's forecast of declining data center sales led to an 8% drop in after-hours trading.
* Chipotle (CMG):
* Met earnings expectations, but conservative guidance resulted in a 5% decline in shares after market close.
* Disney (DIS):
* Set to report earnings on Wednesday, with headwinds expected in theme parks and the Disney+ streaming platform.
Other Market News
* Gold (GC=F) reached a record high of $2,854 per ounce due to increased demand for safe-haven assets amidst the trade war.
* Asian stocks mostly declined as investors reacted to rising trade tensions between China and the US.