U.S. Futures Drop Hard – Marvell Tanks, Tariffs Shake Markets
Posted: Mar 06, 2025
- U.S. stock futures are down, especially chip stocks like Marvell, Nvidia, Broadcom, and AMD
- Tariffs by Trump on Canada, Mexico, and China are causing market concern
- Big economic data like jobless claims and Friday's payrolls report are coming up, affecting rate cut expectations for June
- The AI chip rally may be slowing down due to oversupply and China's DeepSeek chips
- Zscaler is an exception, up 4.6% after raising guidance for 2025.
- U.S. futures fell sharply on March 6, 2025 due to Marvell Technology's forecast and Trump's tariffs
- Marvell's in-line sales projection led to a 15.5% premarket drop, sparking worries about AI infrastructure demand
- Chip stocks, including Broadcom, Nvidia, and AMD, took a hit due to trade war fears and slowing AI demand
- Trump's tariffs, including on Canadian, Mexican, and Chinese imports, are heightening trade war fears and potentially slowing consumer spending and corporate investment
- Uncertainty over tariffs and economic signals are contributing to the market decline
- The Nasdaq has dropped 9% from its peak, reflecting broader market corrections beyond just tariff issues
- Zscaler's 4.6% rise after raising its 2025 revenue forecast suggests demand is holding in some tech niches
- The chip sector is facing challenges in growth trajectory due to oversupply and competition from China
- Investors are waiting for Friday's payrolls data and Fed comments to assess economic health and potential rate cuts
- Short-term volatility is likely to continue in the market due to tariff uncertainty and chip sector weakness
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