Stocks Plunge Before the Open on Higher Bond Yields and Weak Tech Earnings

March S&P 500 E-Mini futures (ESH25) are down -0.92%, and March Nasdaq 100 E-Mini futures (NQH25) are down -1.14% this morning as higher Treasury yields, trade war worries, and disappointing tech earnings weighed on sentiment.

Marvell Technology (MRVL) plunged over -16% in pre-market trading after the semiconductor company gave a Q1 revenue forecast that fell short of the highest estimates. Also, MongoDB (MDB) tumbled more than -17% in pre-market trading after the company issued below-consensus FY26 guidance. In addition, chip stocks fell in pre-market trading after Alibaba Group unveiled its latest DeepSeek competitor at a significantly lower price.

Investors now await a new round of U.S. economic data and remarks from Federal Reserve officials.

In yesterday’s trading session, Wall Street’s major indexes ended in the green. Moderna (MRNA) surged over +15% and was the top percentage gainer on the S&P 500 after announcing plans to launch a personalized cancer vaccine by 2027, which could represent a “quite large” revenue opportunity. Also, automobile stocks advanced after U.S. President Donald Trump gave automakers a one-month exemption from his 25% tariffs on Canada and Mexico, with General Motors (GM) climbing more than +7% and Ford Motor (F) gaining over +5%. In addition, Palantir Technologies (PLTR) rose more than +6% after William Blair upgraded the stock to Market Perform from Underperform. On the bearish side, CrowdStrike Holdings (CRWD) slid over -6% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the cybersecurity company issued disappointing FY26 adjusted EPS guidance. 

The ADP National Employment report released on Wednesday showed that U.S. private nonfarm payrolls rose by 77K in February, well below the consensus estimate of 141K and the smallest increase in 7 months. At the same time, the U.S. ISM services index unexpectedly rose to 53.5 in February, stronger than expectations of 52.5. Also, the final estimate of the U.S. February S&P Global services PMI was revised higher to 51.0 from the 49.7 preliminary reading. In addition, U.S. factory orders rose +1.7% m/m in January, in line with expectations and the largest increase in 6 months. 

Chris Larkin at E*Trade from Morgan Stanley said that Wednesday’s jobs data isn’t “necessarily a reliable guide to what the monthly jobs report will reveal, but after last week’s jobless claims increase, [yesterday’s] miss isn’t going to ease any concerns about a softening economy.”

Meanwhile, the Federal Reserve said Wednesday in its Beige Book survey of regional business contacts that U.S. economic activity increased “slightly” since mid-January, though businesses nationwide expressed uncertainty about new policies from the Trump administration, especially regarding tariffs. Prices rose “moderately” across most regions, with several areas noting faster price increases compared to the prior period. Looking forward, firms across the country “expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively.” “Consumer spending was lower on balance, with reports of solid demand for essential goods mixed with increased price sensitivity for discretionary items, particularly among lower-income shoppers,” according to the Beige Book. The report also said that employment edged slightly higher, on balance.

U.S. rate futures have priced in a 93.0% chance of no rate change and a 7.0% chance of a 25 basis point rate cut at the next FOMC meeting in March.

On the earnings front, notable companies like Broadcom (AVGO), Costco (COST), Kroger (KR), Hewlett Packard Enterprise (HPE), and BJ’s Wholesale Club (BJ) are slated to release their quarterly results today.

On the economic data front, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists expect this figure to be 234K, compared to last week’s number of 242K.

U.S. Unit Labor Costs and Nonfarm Productivity data will also be closely watched today. Economists forecast Q4 Unit Labor Costs to be +3.0% q/q and Nonfarm Productivity to be +1.2% q/q, compared to the third-quarter numbers of +0.8% q/q and +2.2% q/q, respectively.

U.S. Trade Balance data will be reported today. Economists foresee this figure standing at -$128.30B in January, compared to -$98.40B in December.

U.S. Wholesale Inventories data will be released today as well. Economists expect the final January figure to be +0.7% m/m, compared to the previous figure of -0.4% m/m.

In addition, market participants will hear perspectives from Philadelphia Fed President Patrick Harker, Fed Governor Christopher Waller, Richmond Fed President Thomas Barkin, and Atlanta Fed President Raphael Bostic throughout the day.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.309%, up +0.98%.

The Euro Stoxx 50 Index is down -0.45% this morning, giving up earlier gains despite easing tariff fears and some positive earnings news, while investors looked ahead to the European Central Bank’s monetary policy decision. Real estate and utilities stocks led the declines on Thursday. At the same time, automobile stocks outperformed after the White House said auto tariffs on Mexico and Canada would face a one-month delay. Data from European Union statistics agency Eurostat released on Thursday showed that the Eurozone’s monthly retail sales unexpectedly fell in January. Meanwhile, investors are awaiting the ECB’s interest rate decision later in the session, with the central bank widely expected to deliver a quarter-point cut. This would bring the deposit rate to 2.50%, the lowest since January 2023. However, the outlook for a follow-up rate cut in April remains unclear, and investors will closely monitor ECB remarks on the expected pace of future reductions. In other news, European leaders are scheduled to meet in Brussels today to deliberate on strategies to bolster the region’s defense efforts, particularly in support of Ukraine. In corporate news, Air France-KLM (AF.FP) soared over +17% after the airline group posted better-than-expected annual and Q4 operating profit. Also, DHL Group (DHL.D.DX) surged more than +10% after announcing a 1 billion euro cost-cutting plan.

Eurozone’s Retail Sales data was released today.

Eurozone January Retail Sales came in at -0.3% m/m and +1.5% y/y, weaker than expectations of +0.1% m/m and +1.9% y/y.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.17%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.77%.

China’s Shanghai Composite Index ended higher today as expectations grew that the country would roll out more stimulus measures to achieve its ambitious growth target for the year. Software and insurance stocks led the gains on Thursday. Chinese officials on Wednesday set a growth target of about 5% for 2025 at their annual parliamentary session, marking the first time in over a decade that Beijing has maintained the same goal for three consecutive years. This heightened expectations that more aggressive stimulus measures will be needed, given domestic growth headwinds and external uncertainties. The NPC’s emphasis on technology innovation and consumption was encouraging and “should help to sustain the market’s momentum,” according to Morgan Stanley’s strategist Laura Wang. Meanwhile, the benchmark index’s gains widened in the late afternoon session following a joint press conference by China’s top officials from the central bank, market regulators, and others, who pledged increased support for the economy and markets. Sentiment was also buoyed by a delay to some U.S. tariffs on Mexico and Canada, fueling optimism for further trade relief. Still, China reacted firmly to the latest U.S. tariffs, declaring its readiness to fight “any type of war” with the U.S. and rejecting the Trump administration’s fentanyl-related rationale for imposing tariffs as a “flimsy excuse.” In corporate news, Alibaba Group jumped over +8% in Hong Kong after unveiling a reasoning AI model that it claims rivals DeepSeek’s capabilities.

Japan’s Nikkei 225 Stock Index closed higher today, tracking overnight gains on Wall Street. The rally came after the White House announced a one-month tariff reprieve for auto imports from Mexico and Canada. The White House also signaled that Trump is open to additional tariff concessions, alleviating worries about potential economic consequences. Heavy machinery stocks surged on Thursday, with Mitsubishi Heavy Industries rising over +10% after Goldman Sachs boosted its rating and price target on the stock. At the same time, chip-related stocks retreated, capping gains in the benchmark index. Meanwhile, Japan’s 10-year government bond yield hit its highest level in nearly 16 years on Thursday, following a sharp sell-off in German bonds. Yields in Japan are also climbing as investors bet that the Bank of Japan will continue to raise interest rates. BOJ Deputy Governor Shinichi Uchida stated on Wednesday that the central bank remains open to further interest rate hikes but is cautious about moving too quickly, as underlying inflation is still below its 2% target. In other news, Japan’s largest labor union group, Rengo, said on Thursday that its member unions are aiming for an average wage increase of 6.09% for this year, surpassing last year’s demand. In corporate news, KeePer Technical Laboratory climbed over +3% after reporting a 14.4% year-over-year increase in February sales to 1.59 billion yen, buoyed by robust consumer and business demand. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.19% to 25.19.

Pre-Market U.S. Stock Movers

Marvell Technology (MRVL) plunged over -16% in pre-market trading after the semiconductor company gave a Q1 revenue forecast that fell short of the highest estimates.

MongoDB (MDB) tumbled more than -17% in pre-market trading after the company issued below-consensus FY26 guidance.

Chip stocks are moving lower in pre-market trading after Alibaba Group unveiled its latest DeepSeek competitor at a significantly lower price. Nvidia (NVDA), Micron Technology (MU), and Advanced Micro Devices (AMD) are down more than -1%.

Zscaler (ZS) gained over +4% in pre-market trading after the cybersecurity firm posted upbeat FQ2 results and raised its full-year guidance.

Allegro Microsystems (ALGM) surged more than +10% in pre-market trading after ON Semiconductor offered to buy the company at $35.10 per share in cash.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - March 6th

Broadcom (AVGO), Costco (COST), Canadian Natural (CNQ), Venture Global (VG), Samsara (IOT), Hewlett Packard (HPE), Cooper (COO), Guidewire (GWRE), Burlington Stores (BURL), BJs Wholesale Club (BJ), Toro (TTC), Hashicorp (HCP), Gap (GAP), Macy’s Inc (M), Kodiak Gas Services (KGS), Brightspring Health Services (BTSG), GMS Inc (GMS), Marex (MRX), John Wiley&Sons (WLY), Meridianlink (MLNK), Distribution Solutions (DSGR), DXP Enterprises (DXPE), Ero Copper (ERO), Turning Point Brands (TPB), BigBearai Holdings (BBAI), Profrac Holding (ACDC), Real Brokerage (REAX), Cracker Barrel Old (CBRL), Guild (GHLD), Fidus Investment Corp (FDUS), Priority Tech (PRTH), Dingdong (DDL), Velocity Fin (VEL), Funko (FNKO), Xeris Pharmaceuticals (XERS), Ranpak Holdings (PACK), Smith & Wesson (SWBI), Mind Medicine (MNMD), Willdan (WLDN), Delcath Systems (DCTH), Arcturus Therapeutics Holdings Inc (ARCT), Phathom Pharma (PHAT), AerSale (ASLE), Serve Robotics (SERV), Myers Industries (MYE), Potbelly Co (PBPB), American Public Education (APEI), Cango (CANG), El Pollo Loco Holdings Inc (LOCO), Americas Car-Mart (CRMT), Domo (DOMO), Gevo (GEVO), Traeger (COOK).