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

Margaryta Kirakosian and Julien Ponthus

Thu, Mar 6, 2025, 3:40 AM 4 min read

(Bloomberg) -- Stock futures signaled a sharply weaker unfastened for Wall Street, with tech stocks successful peculiar deed by a raft of disappointing net and further signs of Chinese innovation successful artificial intelligence.

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Contracts connected the Nasdaq 100 fell 1.4% portion those connected the S&P 500 dropped 1%. Marvell Technology Inc. shares were among the biggest premarket losers, dropping astir 15%, aft the chipmaker’s effect and gross forecast failed to unrecorded up to investors’ lofty expectations. CrowdStrike Holding Inc. tumbled aft the cybersecurity institution issued a worse-than-expected net outlook. MongoDB Inc. dropped 17% aft the database bundle institution gave a disappointing forecast.

Chip shares came nether renewed unit aft Alibaba Group Holding Ltd. introduced its Qwen platform, a exemplary that it claims performs arsenic good arsenic Chinese start-up DeepSeek but with a fraction of the data. The news, alongside the underwhelming earnings, are denting capitalist assurance successful US companies’ dominance successful AI.

“Clearly Alibaba is weighing connected sentiment,” said Alexandre Hezez, main concern serviceman astatine Group Richelieu successful Paris. “The tech assemblage has been weakened lately, if you harvester that with Marvell, it’s a beauteous sour cocktail for US stocks”

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Europe’s Stoxx 600 scale slipped 0.6%, reacting to sharply higher enslaved yields crossed the continent, pursuing Germany’s announcement earlier this week that it would deploy hundreds of billions of euros successful further spending. Auto shares bucked the trend, however, aft President Donald Trump offered the assemblage a one-month reprieve from the tariffs levied connected Mexican and Canadian imports.

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Germany’s spending program drove Bunds connected Wednesday to their worst league since 1990 and the selloff extended connected Thursday. The moves rippled into markets crossed the euro country and beyond, with Japanese 10-year borrowing costs earlier reaching the highest successful implicit a decennary and Treasury yields rising 3 ground points.

Investors are present waiting for the European Central Bank’s meeting, which is expected to present a 25 basis-point involvement complaint cut, and could output clues connected however rate-setters mightiness respond to the further spending plan.