US Stock Futures Pull Back Amid Disappointing Tech Earnings and Trade War Concerns

US stock futures retreated on Wednesday after earnings reports from Alphabet (GOOGL) and AMD (AMD) fell short of expectations. Investors remain on edge over the escalating trade war between the US and China.

Tech Giants Lag

The tech-heavy Nasdaq 100 futures (NQ=F) led declines, down 0.8%, while S&P 500 futures (ES=F) dropped 0.5%. Alphabet's (GOOGL) stock was under pressure, losing almost 7% pre-market, as fourth-quarter cloud revenue missed estimates. AMD's (AMD) earnings also painted a gloomy picture, with a disappointing data center sales forecast raising concerns about a slowdown in AI demand.

Trade War Impact

The US-China trade war is casting a shadow over tech and chip stocks. Apple (AAPL) shares fell over 2% after Bloomberg reported that Beijing is considering targeting Apple's app store with an antitrust investigation.

Market Strength Amidst Uncertainty

Despite the headlines, the stock market has shown resilience, with analysts citing the strength of tech earnings and consumer spending. However, uncertainty about President Trump's tariff plans has prompted Morgan Stanley to lower its forecast for US interest rate cuts this year.

Earnings Highlights

Disney (DIS) was the earnings standout on Wednesday, reporting strong growth in its streaming segment. However, the company's theme park business faced headwinds due to hurricanes.

China Tech Scrutiny

Apple (AAPL) is the latest tech giant to face scrutiny from China. Bloomberg reports that antitrust regulators are investigating its App Store policies.

Economic Indicators

Later today, updates on US services activity and private payrolls will provide further guidance on the pace of interest rate changes.

Global Market Movement

European stocks moved sideways amid uncertainty over US-China trade tensions. Asian markets were mostly lower as investors weighed the impact of the escalating trade dispute.

Gold Surges

Gold (GC=F) surged to a record high on Wednesday, reaching $2,854 an ounce. The precious metal is seen as a safe haven asset in times of uncertainty.