US Stock Futures Dip amid Trade Tensions

US stock futures retreated on Wednesday as the trade war between the Trump administration and China intensified, weighing on investor sentiment.

Tech Sector Weighs on Futures

The tech-heavy Nasdaq 100 futures (NQ=F) led declines, falling 0.7%, while S&P 500 futures (ES=F) dropped 0.5% following disappointing earnings from Google parent Alphabet (GOOG, GOOGL) and chipmaker AMD (AMD). Dow Jones Industrial Average futures (YM=F) slipped 0.2%, despite the major gauges closing with gains on Tuesday.

Trade War Escalates

Tensions escalated on Tuesday as President Trump imposed 10% tariffs on Chinese goods, prompting China to retaliate with tariffs on 80 US products. Trump indicated that he was in no rush to engage with Chinese President Xi Jinping, suggesting an end to the trade war may be distant.

Alphabet's Earnings Hit

Alphabet, already targeted by China's antitrust probe, faced further setbacks after its Q4 earnings report. Despite beating earnings estimates, a dip in cloud sales and increased spending sent shares down 7%.

AMD Disappoints

AMD's earnings also underwhelmed. While Q4 revenue exceeded estimates, a forecast of declining data center sales caused shares to dive over 8% in after-hours trading.

Chipotle Guidance Concerns

Burrito chain Chipotle (CMG) met earnings expectations, but its conservative guidance resulted in a 5% drop in shares after market close.

Earnings on Tap

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

Toyota Raises Guidance

Despite weaker-than-expected Q3 results, Toyota Motor (TM) raised its full-year operating profit forecast signaling confidence in its ability to mitigate potential tariffs. The automaker also announced plans to establish an EV subsidiary in Shanghai.

Gold Soars

Gold (GC=F) surged to a record high, driven by demand for safe-haven assets amid the trade war. The price of bullion surpassed $2,854 an ounce, the highest point ever.

Asian Stocks Drop

Asian stocks generally declined as investors reacted to rising trade tensions. The CSI 300 Index (000300.SS) erased its initial gains, falling 0.6%, while Japan's Nikkei 225 (^N225) slipped 0.2%.