Dow Falls as Trade War Heats Up, Earnings Miss
US stock futures declined as the Trump administration's trade conflict with China intensified and investors scrutinized corporate earnings reports.
Dow Jones futures (YM=F) hovered around breakeven levels, while S&P 500 futures (ES=F) shed approximately 0.2%, and Nasdaq futures (NQ=F) dipped 0.3%.
Overnight, President Trump levied 10% tariffs on Chinese imports, prompting retaliation from Chinese President Xi Jinping in the form of tariffs on 80 US products. Trump downplayed Beijing's response, indicating that trade negotiations remain distant.
Alphabet (GOOG, GOOGL) faced scrutiny amid the trade war. China launched an antitrust investigation into Google, perceived as a Beijing's retaliation against Trump's tariffs. The tech giant's quarterly earnings also disappointed, with cloud sales declining and expenses rising. Google's shares plummeted 7% after the close.
Chipmaker AMD (AMD) reported modest revenue growth but forecasted a decline in data center sales, causing its shares to plunge over 8% in after-hours trading.
Burrito chain Chipotle (CMG) met earnings expectations but underwhelmed with conservative guidance, sending its stock down 5% after markets closed.
The focus now shifts to Disney (DIS), which releases its earnings report on Wednesday. The entertainment giant's theme parks and Disney+ streaming service are expected to face headwinds.