Dow, S&P 500, Nasdaq set to slide amid tariff turmoil, earnings misses

US stock futures sold off on Thursday after downbeat earnings from Marvell (MRVL) and Macy’s (M), as investors continued to grapple with President Donald Trump’s shifting tariff policy and broader worries about the US economy.

Dow Jones Industrial Average futures (YM=F) fell roughly 0.9%, while S&P 500 futures (ES=F) dropped 1.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) lost 1.4%, as the major gauges pulled back from Wednesday’s sharp gains.

Tech is leading the retreat after Marvell’s (MRVL) quarterly sales forecast disappointed investors expecting a bigger AI payoff. Its shares sank over 16% in premarket, as fellow chipmakers Nvidia (NVDA), Broadcom (AVGO), and AMD (AMD) also lost ground.

Worries about AI growth have stalked tech investors since the arrival of DeepSeek and were further fueled by a wave of cheap Chinese AI models that lifted tech stocks like Alibaba (BABA, 9988.HK). Trump’s threat to kill CHIPS Act funding has also proved unsettling.

CBOT – Delayed Quote USD

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At the same time, trade-war uncertainty persisted as investors weighed how far President Donald Trump is willing to negotiate on tariffs. Trump’s one-month pause on Mexico and Canada duties for automakers initially relieved fears, but broad 25% tariffs remain in effect, though the White House is reportedly looking at exemptions for agricultural products.

Macy’s (M) shares slid after the retail giant posted a weak outlook amid tariff headwinds. Meanwhile, Walmart (WMT) has asked its Chinese suppliers to make big price cuts thanks to the tariffs, Bloomberg reported.

A weekly update on jobless claims will lay the ground for the crucial monthly jobs report on Friday, key to expectations for interest-rate cuts. A run of soft data has spurred concerns that US economic growth is stalling, reviving the specter of stagflation.

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Macy’s stock drops 3% premarket on cautious outlook

Macy’s (M) stock fell 3% premarket after the iconic retailer missed expectations for fourth quarter same-store sales growth and issued cautious guidance.

Several other retailers forecast weaker outlooks this week, as executives broadly see tariffs as having an impact on sales. But it comes at a critical point for Macy’s, which has been attempting a turnaround.

Yahoo Finance’s Brooke DiPalma reports:

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German bonds extend worst drop since 1990 as sell-off spreads worldwide

German bonds are selling off again as investors react to the country’s historic move to ramp up spending on defense as the US pulls its military support in Europe. The rout echoed through debt markets worldwide, pulling down prices.

Bloomberg reports:

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Alibaba stock gains as new Chinese AI tools spur buying

Alibaba shares are rising in premarket, up almost 3%, following a surge for the stock in Asia as local tech names got a boost from the arrival of several new AI models.

The moves come after China-based DeepSeek sent ripples through Silicon Valley with its bombshell release of a potentially lower-cost AI chatbot rival to ChatGPT.

Bloomberg reports:

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Trending tickers in after-hours trade on Wednesday

Marvell (MRVL)

S in AI circuitry company Marvell Technology tumbled 15% after the bell on Wednesday. This is despite beating revenue and earnings expectations in all four of the previous quarters. The fall shows investors’ demand for ever-higher growth from AI businesses.

Zscaler (ZS)

Data cybersecurity company Zscaler saw a 5% jump in shares in after-hours trade. The company surprised by trouncing revenue and earnings expectations by over 10%.

MongoDB (MDB)

MongoDB shares saw the ire of disappointed traders. Despite posting positive revenue and earnings the company failed to beat Wall Streets expectations. Shares in the cloud-based database specialist dived 16% post-market close.
Alibaba stock leaps on DeepSeek rival reveal

Alibaba Group Holding Ltd.’s (BABA) stock soared with the largest single-day jump in weeks after the company revealed a model that it claims provides DeepSeek-level performance while requiring far less data.

Bloomberg reports:

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