United States stock futures traded slightly lower on Wednesday evening (Thursday AEST) following a steep sell-off triggered by mounting concerns over the ballooning U.S. deficit.
By 8:55 am AEST (10:55 pm GMT), Dow Jones Industrial Average futures ticked 0.2% lower, while S&P 500 futures and Nasdaq-100 futures eased 0.1%.
In extended trading, Snowflake surged 6.8% after the cloud data platform posted adjusted first-quarter earnings per share (EPS) of $0.24, beating the expectations of $0.21. The company also provided second-quarter product revenue guidance that surpassed estimates.
Urban Outfitters jumped 15.6% after delivering stronger-than-expected quarterly results. EPS came in at $1.16, well above market estimates of $0.84, while revenue reached US$1.33 billion, beating forecasts of $1.29 billion.
Zoom Communications added 0.1% after the company raised its annual revenue forecast amid gains from hybrid work trends and the integration of artificial intelligence into its products. The firm also reported adjusted EPS of $1.43 versus $1.31 expected.
Earlier in the day, Wall Street endured heavy losses. The Dow Jones fell more than 800 points, while the S&P 500 lost 1.6%, driven by a surge in long-term Treasury yields. Investors grew increasingly concerned that a sweeping U.S. budget bill could significantly worsen the country’s fiscal outlook.
Political wrangling over tax and budget changes has emerged as a new source of uncertainty, with Politico reporting that House Speaker Mike Johnson and blue-state Republicans have tentatively agreed to raise the state and local tax deduction cap to US$40,000.
Analysts warn that if enacted, the bill could add trillions to U.S. debt and widen the deficit, compounding inflationary risks and further straining bond markets.
Markets are also awaiting the latest weekly jobless claims, which are expected to offer fresh insight into labour market conditions and could shape near-term monetary policy expectations.
