Stock market today: Nasdaq futures slip to lead S&P 500, Dow lower as Google earnings fall short

Published On Feb 5, 2025, 3:14 AM

Stock futures in the U.S. took a downturn with the Nasdaq futures dropping the most, primarily due to disappointing earnings reports from tech giants like Alphabet (Google's parent company) and AMD. The news of increased trade tensions between the U.S. and China, stemming from new tariffs imposed by the Trump administration and retaliatory measures by China, has added to market uncertainty. Alphabet's share price fell 7% following its quarterly earnings report, which, despite beating earnings expectations, showed a decline in cloud sales. AMD's sales forecast led its shares to drop over 8% after hours. Chipotle also saw a fall in its share price after giving conservative guidance despite meeting earnings expectations. Looking ahead, investors are eyeing Disney's upcoming earnings report amid ongoing concerns regarding the effects of trade wars on businesses.

Stock Forecasts

GOOGL

Negative

Due to the disappointing earnings reports and rising trade tensions impacting the tech sector, including Alphabet and AMD, performance in these stocks will likely be negative in the near term. Investors should pay close attention to how these developments might influence broader market trends, especially in technology-focused ETFs.

AMD

Negative

AMD's weak forecast regarding data center sales raises concerns about its growth in that sector, suggesting further potential declines in its stock price along with negative sentiment around the semiconductor sector due to the trade tensions impacting chipmakers.

DIS

Neutral

With the upcoming report from Disney amidst challenges such as hurricanes affecting its parks and competition for its streaming service, cautious optimism may lead to negative trading action, particularly in response to any unexpected outcomes in its report.

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