US Stock Index Futures Struggle as Ford, Qualcomm, and Skyworks Weigh on Market Sentiment

US stock index futures showed mixed results Thursday morning, with significant drops in premarket trading for major companies such as Ford Motor Co. and Qualcomm Inc., after disappointing earnings reports. The S&P 500 futures, which initially saw a slight increase, lost momentum as concerns about US tariffs and weaker demand for tech products weighed on investor sentiment.

Major Stocks Face Pressure Amid Weak Earnings

Qualcomm, the world’s largest seller of smartphone processors, saw a sharp 5% drop in its stock price. Investors were spooked by signs of weakening demand for smartphones, which could impact the company’s profits. Ford also struggled, falling 6%, after warning that increased US tariffs could hit the profits of American car manufacturers. The automaker’s cautionary outlook raised concerns about the broader impact of trade policies on the industry.

Adding to the woes, Skyworks Solutions Inc., a key supplier to Apple, plunged more than 20% after signaling intensified competition within the semiconductor sector. As a result, Apple shares also retreated, reflecting broader market anxieties about the tech industry’s future growth prospects.

Honeywell and Energy Stocks See Losses

Honeywell International Inc. dropped over 5%, following news that it will be splitting into separate publicly traded entities. This move comes in the wake of pressure from activist investors, sparking uncertainty about the company’s future direction.

Meanwhile, Treasury Secretary Scott Bessent commented on the current state of US interest rates, indicating that the Trump administration is focused on reducing the Treasury 10-year yield. However, investors remain cautious as some question whether the yields will fall further given the resilient economy and persistent inflationary pressures.

Economic Data and Federal Reserve Outlook

The yield on the 10-year US Treasury rose slightly, climbing about one basis point to 4.43%. Although Treasury yields are near a one-month low, some analysts remain skeptical about the potential for significant further declines unless the economy slows sharply.

Recent data showed a higher-than-expected rise in new unemployment claims for the week ending February 1, while labor costs climbed less than anticipated. The upcoming US nonfarm payrolls report on Friday is expected to offer further insights into the strength of the US labor market and its implications for inflation and interest rates.

Europe and UK Stocks Show Strength

In contrast, European markets showed stronger performance. The Stoxx Europe 600 rose 0.8%, supported by solid earnings reports from Societe Generale SA and AstraZeneca Plc. A. P. Moller-Maersk A/S surged nearly 9% after announcing a $2 billion buyback plan, further boosting the European market.

In the UK, stocks outperformed expectations, while the pound fell sharply after the Bank of England announced an interest rate cut, as widely anticipated. Traders have been increasing bets on further rate cuts, a trend that has weighed on the British currency.

Key Economic Events to Watch

This week will see several key events that could impact market sentiment. Federal Reserve officials Christopher Waller and Lorie Logan are scheduled to speak on Thursday, followed by Amazon’s earnings report. On Friday, the release of the nonfarm payrolls data, along with the unemployment rate and University of Michigan consumer sentiment index, will be closely watched for clues on the US economy’s resilience.

Market Moves at a Glance

• Stocks: S&P 500 futures up by 0.2%, Nasdaq 100 futures little changed
• Currencies: The Bloomberg Dollar Spot Index up by 0.3%, the euro down 0.4% to $1.0366, and the British pound down 0.9% to $1.2390
• Cryptocurrencies: Bitcoin rose 1.7% to $98,595.51, Ether up 0.1% to $2,790.31
• Bonds: The yield on 10-year Treasuries ticked up to 4.43%, with Germany’s 10-year yield rising to 2.38%
• Commodities: WTI crude oil gained 0.6% to $71.43 a barrel, while spot gold slipped 0.1% to $2,862.97 an ounce.

With the backdrop of mixed earnings results, investor caution, and ongoing macroeconomic developments, market participants are bracing for potential volatility as they await further insights from upcoming reports and speeches.