US Stock Futures Reaction to Big Tech AI Spending and Trump's Policies

US stock futures remained stable on Thursday, Feb. 6, 2025, amid market anxiety over Big Tech's AI spending and President Donald Trump's economic policies.

Tech Sector Movement

Nasdaq (NQ=F) futures remained relatively unchanged, with a slight increase of 0.03%. S&P 500 (ES=F) futures experienced a 0.09% gain, while Dow Jones (YM=F) futures rose 0.11%.

Alphabet and Nvidia Performance

Alphabet (GOOG, GOOGL) stocks declined slightly on Tuesday but remained steady in after-hours trading. Investor concerns arose after the company's earnings report revealed a decrease in cloud revenue. In contrast, Nvidia's shares surged 6% on Tuesday and held their value after the closing bell, indicating the company's potential benefit from increased AI spending by Big Tech.

Amazon Earnings Anticipation

Amazon (AMZN) is set to release its earnings report after markets close on Thursday. Investors eagerly await the results, particularly in light of Google's recent disappointing cloud sales performance.

Tariff Impact

President Trump's tariffs continue to affect US companies across various industries. Ford (FORD) saw a decline in after-hours trading despite exceeding earnings expectations due to tempered Q1 forecasts. The company's Chief Financial Officer attributed this performance to the tariffs, stating their significant impact on the industry. Additionally, Chipotle acknowledged its exposure to tariffs and plans to absorb additional costs, potentially impacting its bottom line.

Federal Reserve and Inflation Concerns

Federal Reserve officials reiterated their cautious stance regarding interest rate cuts amid the tariff-induced market uncertainty. Treasury Secretary Scott Bessant emphasized the administration's focus on lowering 10-year Treasury yields rather than directly reducing interest rates.

Gold's Record-Breaking Performance

Gold (GC=F) hit record highs for the fifth consecutive day. The demand for gold soared as investors and banks sought stability amidst the intensifying trade war. Futures are currently trading at $2885 per ounce, approaching the intraday high of $2905.