The S&P 500 futures are down 67 points, the Nasdaq 100 futures have dropped 278 points, and the Dow Jones Industrial Average futures are down 388 points. This indicates a significant decline in pre-open trading, contrasting with yesterday's rally.

The European Central Bank is anticipated to announce a 25 basis point rate cut at 8:15 AM ET. Additionally, the weekly jobless claims report is set to be released at 8:30 AM ET.

The yield on the 10-year Treasury note has increased by two basis points to 4.29%, while the yield on the 2-year Treasury note has decreased by six basis points to 3.93%.

Corporate earnings reports have shown mixed results:

Today's News

Shares of Marvell Technology (MRVL, Financial) plummeted 17.5% after the semiconductor company's fourth-quarter results and guidance failed to impress investors, despite being in line with estimates. Analysts noted that the current environment demands more than just meeting expectations. The company's AI revenue is projected to exceed $2.5 billion by fiscal 2026, but concerns remain over its next-gen program with Amazon. Competitor Broadcom (AVGO, Financial) also saw a decline, falling 3.8% in premarket trading.

Tesla (TSLA, Financial) announced plans to establish a new Megafactory in Texas, near Houston, as part of its expansion in battery storage manufacturing. The facility, located in the Empire West industrial park, will replicate Tesla's existing factory in Lathrop, California. The project involves significant upgrades, including a $150 million investment in manufacturing equipment. Despite these developments, Tesla shares dipped 2.0% in premarket trading.

Quantum computing stocks, including Rigetti Computing (RGTI), faced a downturn after Rigetti's fourth-quarter results fell short of expectations. The company reported a 32.8% year-over-year revenue drop, leading to a 12.3% decline in its share price. Despite the disappointing results, analysts expressed optimism about Rigetti's roadmap and financial stability through 2027. Other quantum stocks like IonQ (IONQ) and D-Wave Quantum (QBTS) also experienced declines.

Hims & Hers (HIMS, Financial) saw its shares fall about 8% following a court's decision to deny a motion challenging the FDA's ruling on Eli Lilly's (LLY, Financial) weight loss drug Zepbound. The telehealth firm had previously benefited from marketing compounded versions of Novo Nordisk’s (NVO) semaglutide. Morgan Stanley mentioned that the court's decision could positively impact Eli Lilly by ending the compounding of its therapy.

Zscaler (ZS) shares rose approximately 3% after the cloud security company raised its fiscal year outlook and exceeded second-quarter estimates. Analysts remain bullish, citing Zscaler as a leading cyber security investment through 2025. The company increased its price target, reflecting confidence in its growth trajectory.

Palantir Technologies (PLTR, Financial) entered into a strategic partnership with EYSA, integrating its software to enhance mobility applications. This three-year agreement aims to leverage Palantir's AI capabilities to drive new business opportunities and operational efficiency across EYSA's lines. The partnership aligns with EYSA's strategy of investing in technology and innovation.

Alibaba (BABA, Financial) unveiled its QwQ-32B AI model, boasting performance on par with competitors like DeepSeek's R1, despite having fewer parameters. The announcement comes as Alibaba commits to a $52 billion investment in cloud computing and AI infrastructure over the next three years. The company's shares surged on the news.

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