Stock Market Steady Amid Tech AI Spending Jitters and Trump Tariffs
US stock futures remained stable as markets grappled with concerns over Big Tech's AI spending and the impact of President Donald Trump's economic policies.
Nasdaq (NQ=F) futures edged up 0.02%, while S&P 500 (ES=F) futures gained 0.08%. Dow Jones (YM=F) futures advanced 0.13%.
Alphabet (GOOG, GOOGL) shares dropped during regular trading but recovered in after-hours trading. Investors expressed caution after the company's earnings report revealed a decline in cloud revenue.
Nvidia (NVDA) shares surged 6% during trading and held steady after hours, indicating potential benefits from Big Tech's AI investments. Amazon (AMZN) is slated to release earnings after Thursday's market close, and investors will monitor its results closely after Google's cloud revenue performance.
Trump's tariffs continued to impact US companies. Ford (FORD) shares fell in after-hours trading despite earnings exceeding expectations due to muted Q1 forecasts. The CFO cited tariffs as a headwind. Chipotle also addressed tariff exposure, announcing plans to absorb additional costs.
Concerns about inflation rose among Fed watchers as tariffs threatened to escalate. Federal Reserve officials maintained a "wait and see" approach to interest rate cuts. Treasury Secretary Scott Bessant emphasized focusing on lowering 10-year Treasury yields.
Gold (GC=F) reached record highs for a fifth consecutive day. Demand for the asset surged as investors sought stability amidst trade tensions. Futures traded around $2885 per ounce, approaching today's all-time high of $2905.