Nasdaq 100: AI Trade Unwinds as Marvell Technology Leads Semiconductor Decline

Dow Futures Slide 400 Points as Tariff Uncertainty Pressures Markets

Stock futures dropped sharply on Thursday as investors reacted to ongoing trade tensions and uncertainty surrounding U.S. tariff policies. Dow Jones Industrial Average futures fell 414 points, or about 1%, while S&P 500 and Nasdaq-100 futures each declined more than 1%. The losses come as traders seek clarity on new tariffs imposed by the U.S. on Canadian, Mexican, and Chinese imports, which have triggered retaliatory measures from Canada and China. Mexico is expected to announce its response over the weekend.

Tariff Concerns Weigh on Market Sentiment

The major indexes have struggled this week, each down more than 1% as trade tensions escalate. Markets saw a brief rebound on Wednesday after the White House announced a one-month delay on tariffs for automakers whose vehicles comply with the United States-Mexico-Canada Agreement (USMCA). The move raised hopes for additional exemptions from the Trump administration, but many analysts remain skeptical about the broader trade outlook.

Adam Crisafulli of Vital Knowledge cautioned that delaying tariffs for a single month offers little relief, calling it “a Band-Aid on a bullet wound” given the administration’s aggressive trade stance. The Federal Reserve’s Beige Book and recent manufacturing data have further highlighted concerns, with businesses citing rising input costs and growing uncertainty due to the tariffs.

AI Trade Unwinds as Semiconductor Stocks Decline

Another factor pressuring the market on Thursday was a sell-off in artificial intelligence-related stocks. Marvell Technology tumbled more than 16% despite reporting better-than-expected fourth-quarter earnings of 60 cents per share on revenue of $1.82 billion, surpassing analyst estimates of 59 cents per share on $1.80 billion in revenue. However, the company’s first-quarter guidance was mixed, contributing to investor unease.

The broader semiconductor sector followed suit, with ON Semiconductor, Taiwan Semiconductor, and Nvidia trading lower in premarket action. Chipmakers Broadcom and Micron Technology also declined, reflecting broader concerns about demand and supply chain disruptions tied to tariffs.

Notable Movers: Zscaler Gains, Victoria’s Secret and MongoDB Drop

Outside the chip sector, Zscaler shares rose 4% after reporting strong earnings, with adjusted earnings of 78 cents per share on revenue of $648 million, beating expectations.

Conversely, Victoria’s Secret dropped 5% after providing weaker-than-expected first-quarter revenue guidance of $1.30 billion to $1.33 billion, below analyst estimates of $1.39 billion.

MongoDB fell nearly 18% after issuing full-year guidance that disappointed Wall Street, forecasting adjusted earnings of $2.44 to $2.62 per share—well below the $3.38 consensus estimate.

Market Outlook: Bearish Near-Term Sentiment

With ongoing tariff uncertainty, rising business costs, and a sharp sell-off in semiconductor stocks, market sentiment remains bearish in the short term. Traders will be closely watching Mexico’s response to U.S. tariffs over the weekend, as well as further signals from the White House on potential exemptions. Unless clarity emerges on trade policy, equities are likely to remain under pressure.

More Information in our Economic Calendar.