Wall Street's futures experienced a downturn early Thursday, influenced by soft earnings reports within the technology sector and the shifting landscape of international trade policies emanating from Washington. In pre-market futures, the S&P 500 showed a decrease of 1%, the Nasdaq fell by 1.2%, and the Dow Jones Industrial Average saw a decline of 0.8%.
Despite the tumult in U.S. markets, Asian exchanges painted a more optimistic picture overnight, trading mostly higher as traders anticipated greater macroeconomic stimulus from Beijing. Meanwhile, European markets were tracking modestly lower by midday as concerns over economic performance grew. In notable pre-market trading, Marvell Technology saw its stock tumble by 16.1% after the semiconductor manufacturer announced robust Q4 earnings and revenue figures.
However, the company tempered expectations for 2025, leading to a sell-off among investors late Wednesday. Similarly, MongoDB faced an 18.2% decline in pre-market trading, following a release of Q4 results that also came with disappointing news about potential slowdowns in revenue growth from AI-related services due to sluggish adoption of AI-tools by businesses projected for 2025.
Investors are also bracing for earnings reports from Kroger and Venture Global, among other companies, which are set to release their financial performance ahead of the market open. The economic calendar for the day includes the Challenger Job-Cut Report for February, scheduled for release at 7:30 am ET, followed by the weekly jobless claims report at 8:30 am ET, indicating job market trends.
At the same hour, the January international trade in goods and services report and Q4 productivity and costs bulletin will be posted, providing insights into economic functions. The wholesale inventories report for January is slated for release at 10 am, while the weekly EIA natural gas report will follow at 10:30 am.
In terms of Federal Reserve speakers, Philadelphia Federal Reserve President Patrick Harker is scheduled to speak at 8:45 am, followed by Fed Governor Christopher Waller at 3:30 pm and Atlanta President Raphael Bostic at 7 pm, which could influence trader sentiments closer to the bell. In the realm of commodities, Bitcoin was trading at $91,597, while West Texas Intermediate crude oil prices rose to $66.63.
Investors in 10-year U.S. Treasuries saw yields at 4.30%, and spot gold was trading at $2,899 per ounce during early trading hours. This multitude of financial data and sentiment gauges reflects an ongoing cautious approach within the markets, as traders react to both earnings and macroeconomic indicators.
(US30, US500).