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U.S. stock futures are dropping as investors review the White House announcement of tariffs on Canada, Mexico, and China; bitcoin falls near $95,000 on risk-off sentiment, dragging crypto-related stocks lower; Palantir (PLTR) shares are falling in premarket trading ahead of its earnings report today; Nvidia (NVDA) shares slip further after a 16% drop last week; and shares of global automakers—including "Big Three" U.S. firms General Motors (GM), Stellantis (STLA), Ford Motor (F)—are sinking on worries about added costs from the tariffs. Here's what investors need to know today.
1. US Stock Futures Sink as Investors Brace for Tariffs
U.S. stock futures are pointing sharply lower as investors digest President Donald Trump's move to place tariffs on Canada, Mexico, and China. Ahead of February’s first trading day, Nasdaq futures are 2% lower, S&P 500 futures are down 1.7%, and Dow Jones Industrial Average futures are 1.5% lower. Over the weekend, Trump announced 25% tariffs on goods from Canada and Mexico and a 10% tariff on Chinese imports, which are effective Tuesday. With oil imports included in the tariffs, oil futures are 2.5% higher, and the dollar is surging against the euro and pound. Yields on the 10-year Treasury note and gold futures are little changed.
2. Bitcoin, Crypto-Related Stocks Fall Amid Risk-Off Sentiment
Bitcoin (BTCUSD) has dropped to near $95,000 amid risk-off sentiment following the tariffs announcement. The cryptocurrency had traded above $105,000 Friday. Crypto-related stocks also are moving lower, with bitcoin buyer MicroStrategy (MSTR) and brokerage Coinbase (COIN) each declining by more than 6% in premarket trading. Shares of bitcoin mining firms Riot Platforms (RIOT) and MARA Holdings (MARA) are down about 7% and those of online trading platform Robinhood Markets (HOOD) are 5% lower.
3. Palantir Stock Drops Ahead of Earnings Report
Palantir Technologies (PLTR) shares around about 2% lower in premarket trading ahead of its earnings report scheduled for after markets close today. The stock's decline comes amid broader market weakness and analyst skepticism around the software maker. None of the 13 analysts covering the stock tracked by Visible Alpha expect the stock has further to rise, with their consensus price target of $50 nearly 40% below the stock's record-high close of $82.49 Friday amid concerns it could be overvalued. The stock has nearly quintupled in value over the past 12 months on demand for the company's Artificial Intelligence Platform.