US Stock Futures Fall Amid Trade War Escalation and Earnings Reports
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US stock futures declined on Tuesday as the Trump administration's trade war with China intensified.
Dow Jones futures (YM=F) remained relatively stable, while S&P 500 futures (ES=F) and Nasdaq futures (NQ=F) slipped by approximately 0.2% and 0.3%, respectively.
The trade war heated up when President Trump imposed 10% tariffs on Chinese goods, prompting a retaliatory response from Chinese President Xi Jinping. Trump's subsequent declaration that China's tariffs were "fine" and that he was in no hurry to engage in further dialogue suggests a prolonged conflict.
Alphabet (GOOG, GOOGL) faced antitrust scrutiny from China and disappointed investors with its earnings report, leading to a 7% drop in share prices after the bell.
AMD (AMD) earnings also fell short, with shares diving 8% in after-hours trading after the company's CEO forecasted a decline in data center sales.
Chipotle (CMG) met earnings expectations but issued conservative guidance, resulting in a 5% decline in share prices after market close.
Disney (DIS) is poised to report earnings on Wednesday, with headwinds anticipated in its theme park and streaming businesses.
Additional Updates:
* Toyota Motor (TM) raised its full-year operating profit forecast, expressing confidence in its ability to withstand potential tariffs.
* Gold (GC=F) reached a record high as investors sought safe-haven assets amid the trade war.
* Asian stocks experienced a downturn on Wednesday due to rising trade tensions.