Stock Index Futures Steady After Tech-Led Selloff, U.S. ADP Jobs Report and Alphabet Earnings in Focus

March S&P 500 E-Mini futures (ESH26) are up +0.11%, and March Nasdaq 100 E-Mini futures (NQH26) are up +0.01% this morning, steadying after yesterday’s tech-led selloff, while investors await the U.S. ADP employment report and a slew of corporate earnings reports, with a particular focus on results from “Magnificent Seven” member Alphabet.

In yesterday’s trading session, Wall Street’s major indexes ended in the red. Data services and software stocks plummeted after AI firm Anthropic released an automation tool for lawyers, with Thomson Reuters Corp. (TRI) tumbling over -15% and EPAM Systems (EPAM) plunging more than -12%. Also, chip stocks sank, with Micron Technology (MU) sliding over -4% and Marvell Technology (MRVL) falling nearly -4%. In addition, Gartner (IT) cratered over -20% and was the top percentage loser on the S&P 500 after the research and consulting firm issued disappointing FY26 guidance. On the bullish side, Palantir Technologies (PLTR) climbed over +6% after the data analytics company posted upbeat Q4 results as well as issued Q1 and FY26 revenue guidance that smashed Wall Street expectations.

“Our sense is that markets are churning underneath the surface as worries over AI capital spending battle with ‘hopes and dreams’ of broadening out as a result of an accelerating U.S. economy,” said Chris Senyek at Wolfe Research.

Richmond Fed President Tom Barkin said on Tuesday that last year’s rate cuts have helped bolster the labor market as policymakers now work to bring inflation back toward the central bank’s target. “I think of these cuts as having taken out some insurance to support the labor market as we work to complete the last mile to bring inflation back to target,” Barkin said. At the same time, Fed Governor Stephen Miran said the absence of strong price pressures in the economy suggests interest rates, which he described as restrictive, should be lowered again this year. “I’m probably looking for a little bit more than a point of interest-rate cuts over the course of the year,” Miran said.

U.S. rate futures have priced in a 91.0% chance of no rate change and a 9.0% chance of a 25 basis point rate cut at the next FOMC meeting in March.

Meanwhile, President Trump signed a spending bill on Tuesday, bringing the four-day partial government shutdown to an end. The deal cleared the U.S. House of Representatives earlier in the day by a 217-214 vote.

Fourth-quarter corporate earnings season is in full swing, and investors look forward to new reports from high-profile companies today, including Alphabet (GOOGL), Eli Lilly and Company (LLY), AbbVie (ABBV), Uber Technologies (UBER), QUALCOMM (QCOM), Boston Scientific (BSX), and Arm Holdings (ARM). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year.

On the economic data front, investors will focus on the U.S. ADP private payrolls report, which is set to be released in a couple of hours. Economists, on average, forecast that the January ADP Nonfarm Employment Change will stand at 46K, compared to the December figure of 41K.

The U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI will also be closely monitored today. Economists expect the January ISM services index to be 53.5 and the S&P Global services PMI to be 52.5, compared to the previous values of 54.4 and 52.5, respectively.

The EIA’s weekly crude oil inventories report will be released today as well. Economists expect this figure to be -2 million barrels, compared to last week’s value of -2.3 million barrels.

In addition, market participants will be anticipating a speech from Fed Governor Lisa Cook.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.276%, up +0.09%.

The Euro Stoxx 50 Index is up +0.10% this morning, eking out a small gain on strength in energy and telecom stocks, while investors digest key inflation data from the region. Energy stocks outperformed on Wednesday after an escalation in U.S.-Iran tensions pushed crude prices higher. Telecom stocks also climbed, hitting an 8-year high. At the same time, healthcare stocks sank, weighed down by a more than -18% plunge in Novo Nordisk A/S (NOVOB.C.DX) after the weight-loss drugmaker issued downbeat full-year guidance. Also, technology stocks slumped, led by declines in software names vulnerable to AI competition. “There is a lot of uncertainty around exactly what AI agents can do, and as such, investors are choosing to shun the software market altogether, leaving nowhere to hide,” said Ben Barringer, head of technology research at Quilter Cheviot. Preliminary data from Eurostat released on Wednesday showed that the Eurozone’s annual inflation rate slipped further below the European Central Bank’s target in January. Separately, a survey showed that the Eurozone economy’s growth slowed for a second straight month in January as demand nearly stagnated and hiring paused, signaling a weak start to the new year. Policymakers at the ECB meet on Wednesday and Thursday and are expected to keep the deposit rate unchanged at 2.00%, with attention on any guidance regarding the rate outlook and remarks on the euro’s recent strength. In other corporate news, Credit Agricole (ACA.FP) fell over -3% after the French bank posted a 39% drop in Q4 profit, weighed down by a one-off charge tied to its increased stake in Italy’s Banco BPM.

Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), Eurozone’s Composite PMI, and Eurozone’s Services PMI data were released today.

Eurozone’s January CPI rose +1.7% y/y, in line with expectations.

Eurozone’s January Core CPI rose +2.2% y/y, weaker than expectations of +2.3% y/y.

Eurozone’s January Composite PMI came in at 51.3, weaker than expectations of 51.5.

Eurozone’s January Services PMI stood at 51.6, weaker than expectations of 51.9.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.85%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.78%.

China’s Shanghai Composite Index closed higher today, rising for a second consecutive session. Consumer and bank stocks were among the biggest gainers on Wednesday. Also, solar stocks rallied after local media reported that teams from SpaceX and Tesla had visited multiple companies in the sector days after Elon Musk announced plans to build large-scale solar cell production in the U.S. The SpaceX team signed an order with a leading domestic solar cell equipment manufacturer, according to a report by Cailian. At the same time, software stocks slumped, tracking declines in their Western peers amid worries that advances in AI will make existing technology obsolete. Meanwhile, Chinese Vice Finance Minister Liao Min said on Wednesday that the country will push ahead with building a unified market to unlock domestic consumption as Asian economies face a “pivotal juncture” in the global economic transformation. On the economic front, a private-sector survey showed on Wednesday that China’s services activity grew at its fastest pace in three months in January, supported by stronger new orders and lifting hiring to its highest level since July last year. In corporate news, Innoscience (Suzhou) Technology rose over +2% in Hong Kong after signing a supply agreement following the completion of design-ins on Google’s AI hardware platforms.

The Chinese January RatingDog Services PMI came in at 52.3, stronger than expectations of 52.0.

Japan’s Nikkei 225 Stock Index closed lower today, retreating from a record high. Software stocks tumbled on Wednesday, tracking losses in their U.S. counterparts amid concerns that advances in AI will erode traditional business models. Chip-related stocks also slid. Limiting losses, energy, mining, and automobile stocks advanced. A private-sector survey released on Wednesday showed that Japan’s services activity grew at its fastest pace in nearly a year in January, while overall private-sector activity recorded the quickest expansion in 32 months, driven by strong demand. Meanwhile, longer-dated Japanese government bond yields edged lower on Wednesday as concerns over deteriorating fiscal conditions eased amid bets that Prime Minister Sanae Takaichi may walk back her pledge to cut consumption taxes on food. Reuters reported that Takaichi should not rely on the Bank of Japan to rein in sharp rises in bond yields, given the high cost of intervention, including the significant risk of triggering unwanted yen weakness. In corporate news, Nintendo slumped nearly -11% after the video game maker reiterated its full-year guidance for Switch 2 sales and earnings, which disappointed investors. Investors are awaiting Japan’s December household spending data, scheduled for release on Friday, which will offer insight into the willingness of the nation’s consumers to spend. Attention will then turn to Japan’s Lower House election to be held on Sunday, February 8th. Local media reported that Takaichi’s Liberal Democratic Party is likely to secure a landslide victory in the election. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -0.08% to 35.80.

The Japanese January au Jibun Bank Services PMI was revised higher to 53.7 from the preliminary reading of 53.4.

Pre-Market U.S. Stock Movers

Advanced Micro Devices (AMD) slumped over -6% in pre-market trading after the chipmaker issued Q1 revenue guidance that underwhelmed investors.

Enphase Energy (ENPH) jumped over +22% in pre-market trading after the solar energy company reported better-than-expected Q4 results and provided strong Q1 revenue guidance.

Super Micro Computer (SMCI) surged more than +11% in pre-market trading after the AI server maker posted upbeat FQ2 results and raised its full-year revenue guidance.

Take-Two Interactive Software (TTWO) climbed over +5% in pre-market trading after the videogame maker reported better-than-expected FQ3 net bookings and raised its full-year net bookings guidance.

Chipotle Mexican Grill (CMG) slid about -6% in pre-market trading after the burrito chain issued below-consensus FY26 comparable restaurant sales growth guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - February 4th

Alphabet (GOOGL), Eli Lilly and Company (LLY), AbbVie (ABBV), Uber Technologies (UBER), QUALCOMM (QCOM), Boston Scientific (BSX), Arm Holdings (ARM), CME Group (CME), McKesson (MCK), O’Reilly Automotive (ORLY), Brookfield Asset Management (BAM), Johnson Controls International (JCI), Cencora (COR), Aflac (AFL), Phillips 66 (PSX), The Allstate Corporation (ALL), MetLife (MET), Yum! Brands (YUM), Old Dominion Freight Line (ODFL), Coherent (COHR), Crown Castle (CCI), Cognizant Technology Solutions (CTSH), GE HealthCare Technologies (GEHC), Symbotic (SYM), Fox Corporation (FOX), Banco Santander Brasil (BSBR), STERIS (STE), Markel Group (MKL), AvalonBay Communities (AVB), Flex Ltd. (FLEX), T. Rowe Price Group (TROW), Bunge Global (BG), Omnicom Group (OMC), Equifax (EFX), Corpay (CPAY), PTC Inc. (PTC), Yum China Holdings (YUMC), Fortive (FTV), Essex Property Trust (ESS), CDW Corporation (CDW), Mid-America Apartment Communities (MAA), Performance Food Group Company (PFGC), IDEX Corporation (IEX), Avery Dennison (AVY), Everest Group (EG), Ares Capital (ARCC), Evercore (EVR), Omega Healthcare Investors (OHI), Equitable Holdings (EQH), Crown Holdings (CCK), Stanley Black & Decker (SWK), The New York Times Company (NYT), Regal Rexnord (RRX), Globe Life (GL), Align Technology (ALGN), U-Haul Holding Company (UHAL), Dayforce (DAY), TTM Technologies (TTMI), Qiagen (QGEN), Snap Inc. (SNAP), Modine Manufacturing Company (MOD), U-Haul Holding Company (UHAL.B), Bio-Techne (TECH), The Ensign Group (ENSG), Rexford Industrial Realty (REXR), EastGroup Properties (EGP), SiTime (SITM), UGI Corporation (UGI), Murphy USA (MUSA), First Industrial Realty Trust (FR), EnerSys (ENS), FirstService (FSV), NOV Inc. (NOV), The Timken Company (TKR), Lear Corporation (LEA), Ralliant (RAL), StoneX Group (SNEX), FormFactor (FORM), Fluence Energy (FLNC), Black Hills (BKH), Boot Barn Holdings (BOOT), e.l.f. Beauty (ELF), Moelis & Company (MC), WEX Inc. (WEX), Reynolds Consumer Products (REYN), Silgan Holdings (SLGN), Victory Capital Holdings (VCTR), Mueller Water Products (MWA), Valvoline (VVV), Helmerich & Payne (HP), Golub Capital BDC (GBDC), Kulicke and Soffa Industries (KLIC), Patterson-UTI Energy (PTEN), Vishay Intertechnology (VSH), ATS Corporation (ATS), Kennametal (KMT), Tenable Holdings (TENB), DHT Holdings (DHT), Hillenbrand (HI), ePlus inc. (PLUS), Kemper (KMPR), Central Garden & Pet Company (CENT), ASGN Incorporated (ASGN), Stewart Information Services (STC), FMC Corporation (FMC), Central Garden & Pet Company (CENTA), Azenta (AZTA), Monarch Casino & Resort (MCRI), Digi International (DGII), Allegiant Travel Company (ALGT), Phibro Animal Health (PAHC), Blue Bird (BLBD), Adient (ADNT), Universal Technical Institute (UTI), PC Connection (CNXN), EZCORP (EZPW), IRSA Inversiones y Representaciones Sociedad Anónima (IRS), A10 Networks (ATEN), Compass Minerals International (CMP), Oaktree Specialty Lending (OCSL).