(Bloomberg) — Stock futures signaled a sharply weaker open for Wall Street, as higher global bond yields, trade-war fears and disappointing tech earnings roiled markets.
Contracts on the Nasdaq 100 fell 1.2% while those on the S&P 500 dropped 1%. Marvell Technology Inc., shares dropped 15% in premarket trading after the chipmaker’s result and revenue forecast failed to live up investors’ lofty expectations. CrowdStrike Holding Inc. tumbled after the cybersecurity company issued a worse-than-expected earnings outlook. Chip shares have also come under pressure after Alibaba Group Holding Ltd introduced its latest DeepSeek rival at a fraction of a price.
Rabobank strategist Matthew Cairns said markets remain focused on the global bond rout as well as the economic fallout from the brewing trade war. President Donald Trump has imposed tariffs on imports from Mexico and Canada, though he has granted automakers a one-month exemption.
“The notion of starting a trade war, which will result in retaliation from the countries that are targeted means there will be additional pressure on the US,” Cairns said. “That is not a great story for equities and earnings growth because US households are going to be poorer.”
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Europe’s Stoxx 600 index ceded early gains to slip 0.5%, reacting to sharply higher bond yields across the continent, following Germany’s announcement that it would deploy hundreds of billions of euros in additional spending.
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Germany’s spending plan drove Bunds on Wednesday to their worst session since 1990 and the selloff extended Thursday to lift yields by another 10 basis points. The selloff rippled out into markets across the euro area and beyond, with Japanese 10-year borrowing costs at the highest in over a decade and Treasury yields up three basis points.
Bond investors are now waiting for the European Central Bank’s meeting, which is expected to deliver a 25 basis-point interest rate cut, and could yield clues on how rate-setters might react to the additional spending plan.
“This is ultimately a reassessment of the reality that Europe needs to find some financing,” Cairns said of the bond selloff. “Some more repricing is likely throughout this morning, then the ECB will come in and attempt to settle market sentiment.”
In currencies, the euro hovered near four-month highs while the Bloomberg Dollar Spot Index was steady after Wednesday’s 1% plunge
Key events this week:
- Eurozone retail sales, ECB rate decision, Thursday
- US trade, initial jobless claims, wholesale inventories, Thursday
- US Treasury Secretary Scott Bessent speaks, Thursday
- Fed’s Christopher Waller and Raphael Bostic speak, Thursday
- Eurozone GDP, Friday
- US jobs report, Friday
- Fed Chair Jerome Powell gives keynote speech at an event in New York hosted by University of Chicago Booth School of Business, Friday
- Fed’s John Williams, Michelle Bowman and Adriana Kugler speak, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 1% as of 5:12 a.m. New York time
- Nasdaq 100 futures fell 1.2%
- Futures on the Dow Jones Industrial Average fell 0.9%
- The Stoxx Europe 600 fell 0.6%
- The MSCI World Index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.1% to $1.0800
- The British pound fell 0.1% to $1.2880
- The Japanese yen rose 0.7% to 147.82 per dollar
Cryptocurrencies
- Bitcoin rose 0.6% to $90,903.53
- Ether rose 2.5% to $2,290.75
Bonds
- The yield on 10-year Treasuries advanced three basis points to 4.31%
- Germany’s 10-year yield advanced eight basis points to 2.87%
- Britain’s 10-year yield advanced five basis points to 4.73%
Commodities
- West Texas Intermediate crude rose 0.4% to $66.59 a barrel
- Spot gold fell 0.9% to $2,893.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Divya Patil.
©2025 Bloomberg L.P.
