US Stock Futures Dip Amid Escalating Trade War
Dow Jones futures (YM=F) hover slightly above flat, while S&P 500 futures (ES=F) decline approximately 0.2%, and Nasdaq futures (NQ=F) drop 0.3% as investors navigate ongoing trade tensions between the US and China.
Trump Administration's Trade War Intensifies
President Trump has imposed 10% tariffs on Chinese imports, prompting Beijing to retaliate with tariffs on 80 US products. Trump's subsequent indication that China's countermeasures are "fine" and that he is not eager to engage with President Xi suggests that a resolution to the trade war may not be imminent.
Alphabet Faces Antitrust Probe and Earnings Disappointment
Alphabet (GOOG, GOOGL) has become a target of the trade war, with China launching an antitrust investigation into Google. This follows disappointing earnings results that included a decline in cloud sales and increased spending, leading to a 7% drop in Google's parent company's shares.
AMD and Chipotle Disappoint Wall Street
Chipmaker AMD (AMD) reported mixed Q4 earnings, with stronger-than-expected revenue but disappointing data center sales forecasts, resulting in an 8%+ decline in after-hours trading. Burrito chain Chipotle (CMG) met earnings expectations but issued conservative guidance, causing its shares to fall over 5% after market close.
Disney Earnings on Horizon
Entertainment giant Disney (DIS) is scheduled to report earnings on Wednesday, with analysts expecting headwinds for its theme parks and Disney+ streaming platform.
Toyota Raises Profit Forecast
Despite weaker-than-expected third-quarter results, Toyota Motor (TM) has raised its full-year operating profit forecast by 9%, expressing confidence in its ability to mitigate potential US tariffs. The automaker also plans to establish a subsidiary in Shanghai to develop and produce electric vehicles for its Lexus brand.
Gold Reaches Record High
Gold (GC=F) has surged to a record high, driven by increased demand for safe-haven assets amid the US-China trade war. The price of bullion has topped $2,854 an ounce, reflecting investor concerns about the potential economic impact of the escalating tensions.
Asian Stocks Fall Amid Trade Uncertainty
Asian stocks have experienced declines as investors react to the trade tensions between China and the US. The CSI 300 Index (83188.HK) lost its initial gains, falling 0.6%, while Japan's Nikkei 225 (^N225) and Hong Kong's Hang Seng (^HSI) both dropped over 0.5%. The US Postal Service's suspension of inbound parcels from China has added to investor volatility, highlighting the ongoing uncertainty surrounding the trade conflict.