REFILE-US STOCKS-Futures dip as markets weigh trade risks, Nvidia down before results

Reuters
02-25
REFILE-US STOCKS-Futures dip as markets weigh trade risks, Nvidia down before results

Adds dropped word "the' in paragraph 3

Futures off: Dow 0.06%, S&P 500 0.21%, Nasdaq 0.38%

Feb 25 (Reuters) - U.S. stock index futures slipped on Tuesday, led by weakness across chip companies and megacaps, as investors digested fresh tariff comments from President Donald Trump and Nvidia dropped 1.5% a day ahead of its keenly awaited results.

At 05:31 a.m. ET, Dow E-minis 1YMcv1 were down 28 points, or 0.06%, S&P 500 E-minis EScv1 were down 12.5 points, or 0.21%, and Nasdaq 100 E-minis NQcv1 were down 81.25 points, or 0.38%.

Investors assessed a report that the U.S. was planning to further restrict the quantity and types of Nvidia chips that can be exported to China without a license. The report also said Washington was consulting with allies including Japan and the Netherlands regarding chip controls over China.

Other semiconductor stocks in the red included Broadcom AVGO.O, down 0.8%, and Advanced Micro Devices AMD.O, down 0.9%. Chip gear makers Lam Research LRCX.O and Applied Materials AMAT.O also declined 0.7% and 0.5%, respectively.

Nvidia's results on Wednesday will be key for the sector, at a time when investors are questioning the industry's hefty spending on AI after news of low-cost competition from China's DeepSeek rattled markets in January. The S&P 500 technology sector .SPLRCT is on track for its biggest monthly decline since April.

Also tempering risk-taking, President Trump said late on Monday that tariffs on Canadian and Mexican imports were "on time and on schedule", ahead of a March 4 deadline. The U.S. and China are already in a trade war.

Trump also signed an order over the weekend to restrict Chinese investments in strategic areas including semiconductors, artificial intelligence, quantum, biotechnology and aerospace.

Along with the potential global impact of these tariffs, investors are also wary about signs that the U.S. economy is stalling and Federal Reserve caution around cutting interest rates further.

Wall Street's three main indexes are poised for declines in 2025.

Interest rate futures currently point to a cut of 25 basis points in July and traders are pricing in another reduction before the end of the year, according to data compiled by LSEG.

On the data front, the Conference Board's gauge for consumer confidence is due at 10 a.m. ET, days after the University of Michigan's index showed consumer sentiment deteriorating.

Late on Monday, Chicago Fed President Austan Goolsbee said the Fed needs more clarity on the total economic impact of the Trump administration's new policies before it can act.

Markets will also hear perspectives from policymakers Lorie Logan, Thomas Barkin and Fed Vice Chair for Supervision Michael Barr through the day.

Crypto stocks also fell, with Coinbase COIN.O down 6% and MicroStrategy MSTR.O down 6.9% tracking bitcoin BTC= prices that touched a more than three-month low.

Chegg CHGG.N slumped 23% after the education company said it was considering a sale or take-private deal as Alphabet's Google GOOGL.O internet search engine was eroding demand for original content.

Zoom Communications ZM.O lost 2.9% after forecasting annual revenue below estimates, while U.S.-listed shares of Li Auto 2015.HK jumped 15% after unveiling its first electric SUV i8.

(Reporting by Johann M Cherian in Bengaluru; Editing by Devika Syamnath)

((johann.mcherian@thomsonreuters.com;))

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