Nasdaq Futures Drop as Marvell Earnings Disappoint
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Nasdaq futures took a hit on Thursday, with Marvell Technology’s earnings report failing to impress investors, leading to a tech selloff. Major tech stocks also faced pressure, contributing to the overall market decline.
As of early trading, S&P 500 futures (SPX) were down 1%, Nasdaq 100 futures (US100:IND) dropped 1.3%, and Dow futures (INDU) slid 0.7%. Meanwhile, the 10-year Treasury yield (US10Y) rose by 3 basis points to 4.31%, while the 2-year yield (US2Y) dipped 1 basis point to 4.00%.
Marvell Technology Stock Plunges After Earnings Report
Marvell Technology (MRVL) shares plummeted 15.5% in premarket trading, despite the semiconductor company posting fourth-quarter results and guidance that exceeded analysts’ expectations. Investors appeared unimpressed, leading to a sharp selloff in the stock, which contributed to the broader downturn in the tech sector and the decline in Nasdaq futures.
Tech Stocks Under Pressure Amid Growing Selloff Concerns
Investor sentiment soured further as several big tech names, including Tesla (TSLA), Nvidia (NVDA), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) (GOOG), traded lower in premarket hours. The widespread dip raised concerns about a potential tech selloff, particularly as investors reassess valuations following a strong market rally earlier in the year.
Nasdaq Futures React to Wall Street’s Tariff Discussions
Despite Wednesday’s market closing in positive territory, ongoing discussions about tariffs continued to dominate headlines. According to Deutsche Bank’s Jim Reid, a key development was the U.S. government’s decision to delay a planned 25% tariff on Canadian and Mexican auto imports by one month. The move aims to prevent U.S. automakers from facing an economic disadvantage.
Cars and auto parts represent nearly 25% of total U.S. imports from Canada and Mexico. While most tariffs that went into effect on Tuesday remain unchanged, the delay provided some relief to automakers and fueled hopes that the White House may reconsider imposing the most economically disruptive measures. White House Press Secretary stated that former President Donald Trump is “open to hearing about other exemptions,” further fueling speculation about potential tariff adjustments.
Key Economic Data to Watch as Nasdaq Futures Drop
Investors are also keeping a close eye on today’s economic reports, particularly the initial jobless claims report and productivity and costs data. Analysts expect jobless claims to decline to 234K, providing insight into labor market trends that could impact the Federal Reserve’s policy decisions.
Market Outlook: What’s Next for Nasdaq Futures?
With Nasdaq futures leading the decline and major tech stocks under pressure, investors remain on edge about a potential broader market pullback. The coming days will be crucial in determining whether this is a short-term correction or the start of a larger trend. As earnings season continues, traders will be watching for signals that could either stabilize or further shake investor confidence in the tech sector.
Stay tuned for more market updates as we track these developments in real time.
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