Essential Facts Before Stock Market's Daybreak:
Headline: U.S. Stocks Sink as Investors Await Fed's Decision; Palantir Stock Tumbles, Ford and DoorDash Report Mixed Results
1. Stock Futures Dive as Investors Chase Tariff Talks and Fed's Meeting
U.S. stock futures are plummeting this morning as investors keep a close eye on the ongoing tariff negotiations and the Federal Reserve's two-day meeting starting today. The S&P 500 and Dow Jones Industrial Average futures are dropping a gruff 0.8% and 0.7%, respectively, following a two-week slide in the previous session. Nasdaq futures are faring the worst, nosediving 1.1% after a 0.7% tumble in the tech-focused index. Bitcoin (BTCUSD) isn't escaping unscathed, slipping slightly to around $94,000. Oil and gold futures are inching higher, while 10-year Treasury note yields remain unchanged.
2. Fed's Two-Day Meeting Commences: Pressure Mounts on Rate Cuts
The Federal Reserve kicks off a two-day meeting today, pending a decision on whether to tweak interest rates, which have remained static since January. The CME Group's FedWatch tool reveals investors doubt that the Fed will adjust interest rates from the current levels of 4.25% to 4.5%. The meeting follows last week's jobs report that demonstrated a steady labor market, coupled with unchanged March inflation. President Donald Trump has been putting pressure on Fed Chair Jerome Powell to lead the central bank in further cutting interest rates. Meanwhile, officials report they're taking a "wait-and-see" approach as they scrutinize more data.
3. Palantir Stock Plunges as AI Software Maker's Results Disappoint
Palantir shares are nosing DIVE more than 7% in premarket trading today after the software firm's quarterly results fell short of investor expectations. Despite the results largely meeting analysts' estimates, some investors seemed disappointed by the AI software provider's performance. The company announced a Q1 revenue of $884 million, up 39% compared to the same period last year, surpassing Visible Alpha's consensus. Adjusted profit of 13 cents was on target with expectations. Palantir boosted its full-year revenue projection to between $3.89 billion to $3.9 billion, a substantial rise above analyst predictions.
4. Ford Stock Crashes Amid Tariff Uncertainty as Outlook is Suspended
Ford stock is plummeting more than 2% in premarket trading following the auto titan's announcement that it's halting its full-year outlook due to lingering tariff uncertainty. Ford warned of a whopping $1.5 billion hit to its adjusted earnings before interest and taxes this year, citing the potential for industry-wide supply chain disruption. The company reported a 71% drop in adjusted earnings per share for Q1 to 14 cents, and revenue that dipped 5% to $40.7 billion.
5. DoorDash Stock Collapses: Firm Reports Soft Revenue, Secures Two Acquisitions
DoorDash shares are briefly tumbling 3% in premarket trading today after the food-delivery service reported Q1 revenue below expectations and revealed two acquisitions. The company posted Q1 revenue of $3.03 billion, disappointing analysts who'd predicted $3.10 billion. DoorDash also announced it was acquiring U.K. delivery firm Deliveroo for approximately 2.9 billion pounds ($3.86 billion) in cash, expanding its geographic reach. The service is likewise gaining restaurant booking platform SevenRooms.
- Cryptocurrency traders keep a watchful eye on the markets, as Bitcoin's value gradually diminishes, dropping to around $94,000.
- The Federal Reserve, known for its influence in finance, has commenced a two-day meeting that will decide potential adjustments to interest rates.
- Investors in the technology sector experienced a setback, as Palantir's shares plunged more than 7%, following the AI software company's quarterly results that fell short of expectations.
- Ford stock nosedived over 2%, with the company halting its full-year outlook due to persistent tariff uncertainties.
- DoorDash shares momentarily collapsed in premarket trading, as the food delivery service reported Q1 revenue below expectations while also securing two acquisitions.
