Nasdaq Futures Reel From Weak Results, AI Worries: Markets Wrap

(Bloomberg) — Stock futures signaled a sharply weaker open for Wall Street, with tech stocks in particular hit by a raft of disappointing earnings and further signs of Chinese innovation in artificial intelligence.

Contracts on the Nasdaq 100 fell 1.6% while those on the S&P 500 dropped 1.2%. Marvell Technology Inc. shares were among the biggest premarket losers, dropping about 15%, after the chipmaker’s result and revenue forecast failed to live up to investors’ lofty expectations. CrowdStrike Holding Inc. tumbled after the cybersecurity company issued a worse-than-expected earnings outlook. MongoDB Inc. dropped 17% after the database software company gave a disappointing forecast.

Chip shares came under renewed pressure after Alibaba Group Holding Ltd. introduced its Qwen platform, a model that it claims performs as well as Chinese start-up DeepSeek but with a fraction of the data. The news, alongside the underwhelming earnings, are denting investor confidence in US companies’ dominance in AI.

“Clearly Alibaba is weighing on sentiment,” said Alexandre Hezez, chief investment officer at Group Richelieu in Paris. “The tech sector has been weakened lately, if you combine that with Marvell, it’s a pretty sour cocktail for US stocks.”

US jobless claims data came in weaker than anticipated at 221,000, versus the 233,000 forecast by economists. Treasuries were steady and the dollar edged 0.2% lower. 

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Meanwhile, the euro extended gains to briefly rise as much as 0.5% against the dollar, after the European Central Bank delivered an anticipated 25 basis-point interest rate cut and indicated its policy-easing phase is drawing to a close. 

Europe’s Stoxx 600 index extended losses after the ECB statement to slip as much as 0.9%. The market was already under pressure from sharply higher bond yields across the continent, following Germany’s announcement earlier this week that it would deploy hundreds of billions of euros in additional spending. 

Germany’s spending plan drove bunds to their worst session since 1990 on Wednesday, with the selloff continuing for a second day. 

Key events this week:

• Eurozone retail sales, ECB rate decision, Thursday
• US trade, initial jobless claims, wholesale inventories, Thursday
• US Treasury Secretary Scott Bessent speaks, Thursday
• Fed’s Christopher Waller and Raphael Bostic speak, Thursday
• Eurozone GDP, Friday
• US jobs report, Friday
• Fed Chair Jerome Powell gives keynote speech at an event in New York hosted by University of Chicago Booth School of Business, Friday
• Fed’s John Williams, Michelle Bowman and Adriana Kugler speak, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 1.1% as of 8:35 a.m. New York time
• Nasdaq 100 futures fell 1.5%
• Futures on the Dow Jones Industrial Average fell 1%
• The Stoxx Europe 600 fell 0.6%
• The MSCI World Index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%
• The euro rose 0.3% to $1.0816
• The British pound was little changed at $1.2886
• The Japanese yen rose 0.9% to 147.57 per dollar

Cryptocurrencies

• Bitcoin fell 0.1% to $90,267.35
• Ether rose 1.2% to $2,261.85

Bonds

• The yield on 10-year Treasuries was little changed at 4.29%
• Germany’s 10-year yield advanced six basis points to 2.85%
• Britain’s 10-year yield advanced two basis points to 4.70%

Commodities

• West Texas Intermediate crude rose 0.3% to $66.54 a barrel
• Spot gold fell 0.4% to $2,906.91 an ounce

This story was produced with the assistance of Bloomberg Automation.

 

–With assistance from Divya Patil and Sujata Rao.

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