US Stock Futures Fall as Alphabet, AMD Tumble: Markets Wrap

(Bloomberg) — US equity futures dropped as investors navigate the trade war and a busy slate of earnings from some of the world’s biggest companies. 

Futures on the Nasdaq 100 were down 0.7% as Google parent Alphabet Inc. and Advanced Micro Devices Inc. plunged in US pre-market trading after disappointing results. Contracts on the S&P 500 fell 0.4%, suggesting Wall Street’s rebound may be short-lived. 

While the first volleys in the latest US-China trade war made clear that Xi Jinping is taking a more cautious approach than during Donald Trump’s first term, tariff risks remain at the forefront. Disappointing results from Alphabet and AMD also heightened unease about the outlook for megacap tech companies that have driven the S&P 500’s gains. Amazon.com Inc. is scheduled to report on Thursday.

“It remains tough for anyone to have a particularly high degree of conviction when operating in such an uncertain environment,” said Michael Brown, senior research strategist at Pepperstone Group Ltd. “I still favor adopting a more cautious stance in the short run, as uncertainty remains elevated, and participants chew through this week’s remaining risk events, including earnings from Amazon, and Friday’s US jobs report.”

The yen gained against the greenback and gold rose to a record high on haven demand. The 10-year Treasury yield dipped and an index of dollar strength fell, though it pared the decline after a report showed employment at US companies picked up in January by more than forecast, highlighting resilient job growth despite mounting uncertainty.

Alphabet posted fourth-quarter revenue that missed analysts’ expectations after growth in its cloud business slowed, raising concern from investors about the billions the company is spending on artificial intelligence. Chip maker AMD gave a disappointing outlook for its data center business, an area where it’s struggling to catch up with AI computing leader Nvidia Corp.

“Those expectations that analysts have placed, the bar is a lot higher this time,” said Aneeka Gupta, director of macro-economic research at Wisdomtree UK Ltd. “There is a greater probability that they don’t meet that higher bar. If they disappoint, the ramifications are a lot bigger.”

Apple Inc. dropped in premarket trading after China’s antitrust watchdog signaled a probe into the company’s policies. Shares in Uber Technologies Inc. fell after an earnings miss, while The Walt Disney Co. jumped after a beat. Other US companies reporting results on Wednesday include Ford Motor Co. and Qualcomm Inc.

Traders will also look to the US ISM services data later today for more clues on the Federal Reserve’s rate path. Activity in the services sector likely grew more slowly in January amid winter storms across much of the country and wildfires on the West Coast. High-frequency payroll data suggest hiring activity was relatively steady on a seasonally adjusted basis, according to Bloomberg Economics.

The Stoxx Europe 600 fluctuated, with declines for technology shares offsetting gains in health care after upbeat guidance from the region’s biggest listed company, Novo Nordisk A/S.

Among individual movers in Europe, Spanish lender Banco Santander SA surged after reporting record profit and announcing at €10 billion buyback. Drugmaker GSK Plc. jumped after boosting its sales forecast. Renault SA declined after a report that Nissan Motor Co. Ltd., in which it has a 36% stake, will withdraw from its deal with Honda Motor Co. Ltd. to integrate their businesses.

A gauge of Asian shares rose for a second straight day while equities fell in China, which reopened Wednesday after Lunar New Year holidays. 

Amid rising trade tensions, the US Postal Service said it was temporarily suspending inbound international packages from China and Hong Kong. While it’s not clear what prompted the move, it comes after Trump revoked a “de minimis” rule for China, which previously allowed small packages under $800 to enter the US duty-free.

“Trade relations between the US and China remain a risk, though if the 10% US tariff and China’s response measures were to be postponed, it will be good for the market,” said Kenny Wen, head of investment strategy at KGI Asia Ltd. “On the other hand, the disputes may escalate again.”

Trump told reporters there’s no rush to talk to Xi and he’ll speak to the Chinese president at the appropriate time.

In commodities, oil declined as concerns that the trade war would hurt global growth outweighed the announcement of reinforced sanctions on Iran.

Key events this week:

• US trade, Wednesday
• Fed’s Austan Goolsbee, Tom Barkin, Michelle Bowman, Philip Jefferson speak, Wednesday
• Eurozone retail sales, Thursday
• UK rate decision, Thursday
• US initial jobless claims, Thursday
• Fed’s Christopher Waller, Lorie Logan speak, Thursday
• Amazon earnings, Thursday
• US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
• Fed’s Michelle Bowman, Adriana Kugler speak, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.4% as of 8:24 a.m. New York time
• Nasdaq 100 futures fell 0.7%
• Futures on the Dow Jones Industrial Average fell 0.2%
• The Stoxx Europe 600 rose 0.2%
• The MSCI World Index rose 0.2%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%
• The euro rose 0.4% to $1.0417
• The British pound rose 0.4% to $1.2532
• The Japanese yen rose 0.9% to 152.98 per dollar

Cryptocurrencies

• Bitcoin rose 1.9% to $98,361.45
• Ether rose 5.9% to $2,796.37

Bonds

• The yield on 10-year Treasuries declined six basis points to 4.45%
• Germany’s 10-year yield declined five basis points to 2.35%
• Britain’s 10-year yield declined seven basis points to 4.45%

Commodities

• West Texas Intermediate crude fell 1.1% to $71.88 a barrel
• Spot gold rose 0.8% to $2,865.98 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Michael Msika and Winnie Hsu.

©2025 Bloomberg L.P.