US Stock Futures Dip on Heightened Trade Tensions and Earnings Jitters
Amidst escalating trade hostilities between the US and China, US stock futures retreated on Wednesday.
* Dow Jones futures (YM=F) held steady.
* S&P 500 futures (ES=F) declined by approximately 0.2%.
* Nasdaq futures (NQ=F) dropped by 0.3%.
Overnight, the Trump administration implemented 10% tariffs on Chinese goods, prompting Chinese authorities to retaliate with tariffs on 80 US products. President Trump expressed indifference towards China's tariffs and downplayed the urgency of communication with President Xi.
Alphabet (GOOG, GOOGL) bears the brunt of the trade war. China launched an antitrust probe into Google in response to Trump's tariffs. The tech giant also announced earnings results that disappointed investors, despite surpassing expectations on earnings and revenue. Concerns over declining cloud sales and increased spending sent Google shares plummeting 7% after-hours.
AMD (AMD) also faced a sell-off after its Q4 earnings call. While the chipmaker exceeded revenue estimates, the company's forecast of declining data center sales dragged shares down by over 8% in after-hours trading.
Burrito chain Chipotle (CMG) met earnings expectations, but its conservative guidance led to a 5% drop in share value after market close.
Disney (DIS) is expected to report earnings on Wednesday, with headwinds anticipated for its theme parks and Disney+ streaming platform.