US stock futures showed little movement before the market opened on Thursday, primarily due to persistent concerns surrounding Big Tech and speculation stemming from a Supreme Court hearing that could impact President Trump’s aggressive tariff policies. Futures for the Dow Jones Industrial Average and the S&P 500 fluctuated around the break-even point, while the Nasdaq 100 futures also reflected minimal changes after a recent rebound sparked by positive job data and a resurgence in technology stocks.
The earlier week’s struggles appeared to ease slightly on Wednesday, driven by a notable bounce in AI-related stocks, though anxiety about a potential Big Tech bubble lingered as AI investments remain at all-time highs. Investors are grappling with mixed signals regarding technology valuations. Chipmaker Qualcomm reported robust earnings and optimistic guidance, yet its stock fell nearly 3% in premarket trading, highlighting investor disappointment. In contrast, shares of Arm rose 6% as the chip designer attributed strong demand for AI in its quarterly revenue forecast, surpassing expectations.
Attention is notably focused on Tesla’s shareholder meeting, which begins at 4 p.m. ET. The primary topic under discussion is Elon Musk’s proposed trillion-dollar compensation package, with speculation that he might step down as CEO if the proposal is not approved. This event could provide insights into whether major tech players—dubbed the “Magnificent Seven”—can maintain their upward momentum in this year’s market rally.
In other developments, the market reacted to skepticism voiced by several Supreme Court justices regarding the legality of Trump’s extensive trade tariffs. Treasury Secretary Scott Bessent expressed optimism, but a ruling against the tariffs could significantly alter both international trade and domestic economic spending.
Wall Street is also assessing the implications of the FAA’s recent decision to reduce flights by 10% at 40 airports amid a federal shutdown that has now reached its 37th day. This cancellation aims to improve passenger safety, given a shortage of air traffic controllers who have not received compensation in weeks, exacerbating existing travel delays.
On the earnings front, key reports from Warner Bros. Discovery, Airbnb, and Moderna are expected to stand out on Thursday.
In related news, Snap Inc.’s stock surged nearly 20% after the company reported better-than-expected revenue and announced a significant partnership with Perplexity AI. The partnership involves a $400 million deal to integrate AI features into Snapchat’s chat interface, aimed at enhancing user engagement. For the third quarter, Snap posted a loss per share of $0.06, improved from a projected $0.12 loss, and reported revenue growth of 10% year-over-year to $1.5 billion, exceeding analyst expectations.
Additionally, Nvidia saw a slight increase in its stock following CEO Jensen Huang’s remarks suggesting China will excel in the AI race. Conversely, Duolingo’s shares plummeted by 24% as the company projected fourth-quarter bookings below analyst estimates. DoorDash’s stock also declined despite beating revenue forecasts, as its earnings fell short of expectations.
Marvell Technology stocks rose 11% after reports indicated that SoftBank is considering a potential takeover of the company. Meanwhile, Elon Musk’s compensation discussions and the fallout from various Q3 earnings reports continue to be focal points for investors as they navigate an uncertain market landscape.
