US stock futures pulled back as the Trump administration’s trade war with China gained steam and investors digested corporate earnings reports.
Dow Jones futures (YM=F) remained roughly flat, while S&P 500 futures (ES=F) slipped roughly 0.2%, and Nasdaq futures (NQ=F) slid 0.3%.
Trump imposed 10% tariffs on Chinese goods overnight on Tuesday and Chinese leader Xi Jinping quickly countered by announcing tariffs on 80 US products. Trump later indicated China’s retaliatory tariffs were ‘fine’ and he was in no rush to speak with Xi, suggesting an end to the trade war may not be near.
Alphabet (GOOG, GOOGL) is already finding itself in the crosshairs of the trade war. Ahead of the tech giant’s Q4 earnings report, China announced it was launching an antitrust probe into Google in what was widely understood as a retaliatory measure by Beijing against Trump’s tariffs.
Alphabet was dealt a second blow on Tuesday when its earnings results rattled investors. While the company beat on earnings and met expectations on revenue, a dip in cloud sales and jump in spending spooked Wall Street. Shares of the Google parent fell 7% after the bell.
AMD (AMD) earnings received a tough reception too. The chipmaker achieved a solid 4.6% gain after its Q4 revenue topped estimates, but once its CEO forecast declining data center sales, shares dove more than 8% in after-hours trading.
Burrito chain Chipotle (CMG) also met Wall Street’s expectations for earnings, but its conservative guidance led shares down more than 5% after market close.
Looking forward, Disney (DIS) is set to report earnings on Wednesday. The entertainment giant’s theme parks and Disney+ streaming platform are both expected to show headwinds.
Coming soon
Stock market coverage for Wednesday, Feb. 5, 2025
