Stock Market Update

Equity futures point to a flattish opening this morning after a tough day for stocks in the previous session that saw the major averages all close over 1.0% lower and the S&P 500 move back into negative territory for the year, finishing below its 50-day moving average. 

Renewed concerns of AI disruption rocked the software sector once again, while the financial industry also faced similar pressures. Yesterday's session was largely devoid of any gains across hyperscalers or semiconductors to offset the losses. 

That could be set to change today, though, as Advanced Micro Devices (AMD 218.72, +22.12, +11.3%) trades sharply higher in the premarket after Meta Platforms (META 632.05, -5.20, -0.8%) announced a multiyear deal with the company valued at over $100 billion. 

Meanwhile, the market is also subject to developments on the trade front, as a 10% global tariff goes into effect today, with Bloomberg reporting the White House has prepared a formal order to raise it to 15%. Tariff concerns saw the consumer discretionary sector lag in yesterday's trade, with particular weakness in stocks that rely on imports or have manufacturing bases overseas. 

Earnings also continue to be a driver of some notable stock-specific moves.

In corporate news:

• President Trump will announce during the State of the Union that technology companies will be required to pay for extra utility costs, according to The Wall Street Journal. 
• Advanced Micro Devices (AMD 218.72, +22.12, +11.3%) trades sharply higher in the premarket after Meta Platforms (META 632.05, -5.20, -0.8%) announced a multiyear deal with the company valued at over $100 billion, according to CNBC. 
• FedEx (FDX 383.70, -0.01, -0.0%) filed a lawsuit to get a refund of tariffs, according to CNBC. 
• Home Depot (HD 386.00 +9.01, +2.4%) beat EPS expectations by $0.19, reported revenues in-line, guided FY27 EPS in-line with revenues in-line, and raised its dividend by 1.3%.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (+2.1%) continuing its record run. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: +0.9%, India's Sensex: -1.3%, South Korea's Kospi: +2.1%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China's Shanghai Composite (+0.9%) recorded a solid gain on its first day of trading after the Lunar New Year closure.
• German Chancellor Merz will visit China over the next two days.
• The People's Bank of China made no changes to its one-year (3.00%) and five-year (3.50%) loan prime rates, which was expected.
• China's Ministry of Commerce banned dual-use exports to nearly two dozen Japanese companies, citing national security concerns.

In economic data:

• South Korea's February Consumer Confidence 112.1 (last 110.8). January PPI 0.6% m/m (last 0.4%); 1.9% yr/yr (last 1.9%)

Major European indices trade near their flat lines while Spain's IBEX (-0.8%) underperforms, dipping from record territory. STOXX Europe 600: flat, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.2%, France's CAC 40: flat Italy's FTSE MIB: -0.5%, Spain's IBEX 35: -0.8%.

In news:

• Bank stocks are among the laggards in the region after disappointing quarterly results from Standard Chartered.
• German Chancellor Merz will visit China over the next couple days.

In economic data:

• U.K.'s February CBI Distributive Trades Survey -43 (expected -27; last -17)
• France's February Business Survey 102 (expected 104; last 105)