Stock futures are sharply lower this morning as the technology sector continues to face significant pressure, reflecting broader market concerns. Futures tied to the Dow Jones Industrial Average dropped about 0.6% following a challenging previous session where the index fell 800 points, marking a stark reversal after achieving record highs earlier in the week. The S&P futures are down 0.9%, while futures for the tech-heavy Nasdaq plummeted by 1.4%. Major tech stocks are notably struggling in premarket trading, with Nvidia (NVDA), a leader in AI chips, losing 3% and electric vehicle manufacturer Tesla (TSLA) seeing a more than 4% decline. The Nasdaq is on track for its second consecutive week of losses, mirroring the continued unease surrounding the AI trade. Additionally, Bitcoin is under pressure as it trades at $94,500, a decline from a recent high of $100,400 and its lowest level since May. Gold futures also fell 1.8%, retreating to $4,120 an ounce after a recent surge. The yield on the 10-year Treasury note fell slightly to 4.07%, impacting mortgage rates and consumer loan costs.
In political news, President Donald Trump is considering reducing tariffs on several imported food items in a bid to combat rising grocery prices. Reports indicate that the administration is negotiating new deals with countries such as Argentina, Guatemala, El Salvador, and Ecuador. The goal is to decrease tariffs on items like coffee, bananas, and beef, which have all seen significant price increases—coffee is up 19% year-over-year, while banana prices have risen by 7%. This move follows earlier statements from Treasury Secretary Scott Bessent, who indicated a focus on tariffs affecting items that are not easily produced in the U.S.
In corporate developments, Microsoft (MSFT) and Amazon (AMZN) are reportedly supporting legislative measures to limit the ability of Nvidia to sell chips to China. According to The Wall Street Journal, Microsoft is publicly backing the Gain AI Act, which would require U.S. government approval for chip sales to China and other countries under an arms embargo. Amazon has privately signaled its support in discussions with Senate staff. This comes at a time when Nvidia is advocating for increased access to the Chinese market despite existing restrictions on chip sales.
The media landscape is also undergoing significant changes. Paramount (PSKY), Comcast (CMCSA), and Netflix (NFLX) are reportedly preparing bids to acquire Warner Bros. Discovery (WBD). Sources state that Paramount is interested in purchasing the entire company, which includes major assets like HBO, CNN, and the Warner Bros. studios. Comcast and Netflix are focusing more on acquiring specific properties, particularly the movie studios and the HBO Max streaming service. Warner Bros. Discovery’s stock has surged more than 300% this year amid takeover speculation and is up nearly 3% in premarket trading.
Finally, shares of StubHub (STUB) are tumbling after the ticket seller failed to provide current-quarter guidance to investors during its initial earnings report since going public in September. While the company reported better-than-expected sales, its net loss of $1.3 billion, attributed to a compensation charge related to its IPO, raised concerns. StubHub CEO Eric Baker confirmed the absence of guidance for the upcoming quarter, resulting in a nearly 19% drop in share price before the market opened, reflecting a 20% decline from its IPO price of $23.50.
