The price of stock futures dropped on Tuesday, as China retaliated against the new US tariffs and imposed its own levies.
China has also launched an investigation against Alphabet’s Google, for possible antitrust violation, adding further uncertainty to the markets.
S&P500 futures fell 0.12%, while Dow Jones Industrial Average futures dropped more than 0.2%.
On Monday, stocks experienced an extremely turbulent session. Major indices staged a dramatic rebound following a global sell-off.
After Donald Trump’s weekend order to impose 25% tariffs on Mexico, Canada and China, as well as a 10% tax on China, the Dow Jones Industrial Average plummeted more than 600 point, or almost 1.5% at its lowest session level.
The markets recovered some ground in the late afternoon, after Trump declared a temporary suspension of tariffs on Mexican products.
All three of the major indices ended in negative territory despite the recent recovery.
We are currently in a bullish market, fueled by the strong US consumer as well as rising profits for corporations. “Until this narrative cracks, I think dips can be bought,” said Ross Mayfield. Investment strategist at Baird.
We think that the general backdrop for investors is still quite good.
Mayfield believes that China tariffs are likely to remain the same as during the Trump Administration, however, this time, “trade is a way for the White House to make non-trade concessions.”
Palantir stock (PLTR) surges after strong earnings report
Palantir Technologies’ (PLTR), a software company, saw its premarket trades surge by 19% after it exceeded analyst expectations with its report for the fourth quarter.
Its adjusted earnings exceeded Wall Street forecasts. Revenue grew by 36%, to $828 millions.
Palantir’s US business was the leader, with an increase of 52% year-overyear.
Alex Karp, CEO of Kubernetes Technologies Inc., praised the company for its growing position as a leader in the AI revolution.
Karp stated that “our early insights regarding the commoditization large language models has evolved from theory into fact.”
The company anticipates Q1 revenue of $858-$862 million. This is a 36 percent increase over 2024 and better than $799 million.
Tesla stock (TSLA) is at risk of losses due to tariff delays
Tesla (TSLA), after a drop of 5.2% on Monday, was down 0.3% during pre-market trading.
Tesla was hit by delays in US tariffs for Mexican products. Tesla assembles its US cars exclusively in Mexico.
Around 15% of parts used in a Model Y in the US come from Mexico. This raises concerns about possible supply chain interruptions.
Nvidia and Super Micro Computer show mixed results
After a drop of 2.8% on Monday, shares of Nvidia rose 0.8% during premarket trading.
Market concerns about the impact of US tariffs and China’s AI advances through DeepSeek led to the decline.
Super Micro Computer saw a 6.8% rise in its premarket trade despite a drop of 5.86% on Monday.
On February 11, the company that produces AI servers will provide an update of its business for fiscal quarter two.
Super Micro was under fire for failing to comply with Nasdaq listing rules, but it is now on track to submit delayed financial statements before February 25, 2019.
Market movers
Synaptics shares, which is a company that designs semiconductors, dropped by 5% when its CEO said he was stepping down in order to become the new CEO of Lumentum. Lumentum makes cloud-based AI products. Lumentum’s shares increased by 1.7%.
Clorox’s (CLX), which reported that its second quarter sales had dropped 15% to $1.69 Billion, has revised down their fiscal year sales projection.
In premarket trading, shares of this cleaning products manufacturer fell 1.3%.
Watch out for earnings reports
Investors await earnings reports for major companies such as Alphabet, Merck, Advanced Micro Devices (AMD), Chipotle Mexican Grill and PayPal Holdings.
Alphabet’s share price rose by 0.2% before the market opened, and it is anticipated that earnings per share will be $2.13 on a revenue of $96.7 Billion.
The increase would be significant compared to the $1.64 per share profit and $86.3 billion revenue from last year.
Analysts are likely to be focused on Alphabet’s AI and cloud investments as well as its growth in the cloud. These could have a significant impact on future performance.
As new information becomes available, this post PLTR surges and TSLA falls as US futures fall on China’s retaliation could be updated.
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