U.S. Stock Futures Edge Higher Amidst Tech AI Spending Jitters and Trump Tariffs
U.S. stock futures are trending upward in response to market uncertainties surrounding Big Tech's AI investment and President Donald Trump's rapid economic policy implementation.
* Nasdaq (NQ=F) futures gain 0.3%, reflecting the strength in tech-heavy companies.
* S&P 500 (ES=F) futures climb 0.3%, indicating a broader market rise.
* Dow Jones (YM=F) futures rise 0.2%, suggesting a stable market outlook.
Alphabet (GOOG, GOOGL)'s stock dip on Tuesday due to concerns over cloud revenue dampening has subsided in after-hours trading. Conversely, Nvidia (NVDA) benefits from increased AI spending plans, with shares surging 6% on Tuesday and remaining stable after market close.
Amazon (AMZN), another tech giant, is set to release earnings after market close on Thursday, attracting investor attention following Alphabet's cloud sales struggles.
President Trump's tariffs continue to affect U.S. companies, as Ford (FORD) underperforms in after-hours trading despite exceeding earnings expectations. Ford's CFO cites tariffs as a headwind, predicting a significant industry impact.
Fast-food chain Chipotle (CMG) acknowledges its tariff exposure, announcing plans to absorb extra costs with a 10% reduction to its bottom line.
Federal Reserve officials express concerns that tariffs might trigger inflation, while adopting a "wait-and-see" approach to interest rate cuts. Treasury Secretary Scott Bessant emphasizes the focus on lowering 10-year Treasury yields rather than interest rates.
In commodities, gold (GC=F) hits record highs for the fifth consecutive day, as banks and investors seek stability amidst the trade war. Futures trade at $2885 per ounce, close to the $2905 peak reached earlier.
Oil Prices Rebound with Saudi Price Increase
Oil prices recover from losses following a steep increase in March oil prices announced by Saudi Arabia's state oil company.
* Brent crude futures (BZ=F) jump 14 cents to $74.75 per barrel.
* West Texas Intermediate (CL=F) crude gains 18 cents to $71.21 per barrel.