US stocks stalled before the bell on Thursday as concerns about Big Tech continued to dog markets and a Supreme Court hearing fed hopes for a shift in President Trump’s aggressive tariff push.
Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) wobbled around the flat line. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were also little changed on the heels of Wednesday’s comeback for major US gauges, fueled by upbeat jobs data and a revival in tech stocks.
A rebound in AI-linked names on Wednesday helped the broader market recover from early-week weakness that left all three major indexes on pace for weekly declines. But fears of a Big Tech bubble have not fully abated, given AI expenditure is still at sky-high levels.
Investors are trying to parse mixed signals as they debate whether tech valuations are too lofty. Chipmaker Qualcomm (QCOM) posted strong earnings and upbeat guidance in after hours, but its stock fell nearly 3% in premarket — reflecting investor disappointment. But at the same time, Arm (ARM) shares jumped 6% after the chip designer credited AI demand for a quarterly revenue forecast that topped estimates.
That turns a spotlight on Tesla’s (TSLA) shareholder meeting, scheduled to start at 4 p.m. ET. A vote on Elon Musk’s proposed trillion-dollar pay package is the main event, amid worries he will quit as the EV maker’s CEO if the plan is rejected. Overall, though, investors will watch the outcome for signs the “Magnificent Seven” tech megacaps that include Tesla can continue to power this year’s rally in stocks.
Meanwhile, the market took note of skepticism from several Supreme Court justices on the legality of Trump’s sweeping trade tariffs, even though Treasury Secretary Scott Bessent said he was “very, very optimistic”, A ruling against the policy could roll back the duties, with enormous impact on international trade as well as domestic spending.
Wall Street is also calculating the fallout from the FAA’s decision to cut 10% of flights at 40 airports because of the federal shutdown, which entered its sixth week and record 37th day on Thursday. The move aims to keep travelers safe amid a shortage of air traffic controllers, who haven’t been paid for almost a month. The canceled flights add to already disruptive delays due to the staffing pressures.
On the earnings front, results from Warner Bros. Discovery (WBD), Airbnb (ABNB), and Moderna (MRNA) the standouts on Thursday’s docket.
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Snap stock soars on Perplexity partnership, revenue and DAU beats
Snap (SNAP) stock soared nearly 20% after the tech company reported a revenue beat, issued a strong forecast, and announced a partnership with Perplexity AI (PEAI.PVT).
As part of that partnership, Perplexity will pay Snap $400 million starting in early 2026 to appear in the Chat interface for Snapchatters worldwide.
“Our goal is to make AI more personal, social, and fun — woven into the fabric of your friendships, Snaps, and conversations,” Snap CEO Evan Spiegel said. “This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future.”
For the third quarter, the company reported a $0.06 loss per share, versus a $0.12 loss estimated by Wall Street analysts, according to S&P Global Market Intelligence.
Revenue grew 10% year over year to $1.5 billion, compared to $1.49 billion estimated by analysts and $1.34 billion in Q2. It marked a deceleration from the 15.5% annual revenue growth in Q3 2024.
For the fourth quarter, Snap expects sales to be between $1.68 billion and $1.71 billion, also ahead of estimates.
Daily active users (DAU) grew 8% year over-year to 477 million. The company had guided for 476 million in Q3.
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Bank of America outlines plans for earnings growth and AI in first investors day in years
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Premarket trending tickers: Nvidia, Duolingo and DoorDash
Nvidia (NVDA) stock rose 1% on Thursday before the bell. The rise followed CEO Jensen Huang’s comments to the FT that China will win the AI race with the US.
Duolingo (DUOL) stock plunged 24% before the bell after the company’s forecast for the fourth quarter outlined bookings below Wall Street estimates.
DoorDash (DASH) stock plunged in premarket trading on Thursday, despite the delivery company’s third quarter revenue beating estimates, earnings fell short.
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Marvell rises after report SoftBank weighed potential takeover
Marvell Technology Inc. (MRVL) stock rose 11% before the bell on Thursday following a report that Japanese company Softbank (SFTBY) was weighing a potential takeover of the US chipmaker, according to people familiar with the matter.
Bloomberg News reports:
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Elon Musk’s $1 trillion pay fight — and other things to expect at Thursday’s Tesla shareholder meeting
Tesla holds its 2025 shareholder meeting on Thursday, kicking off at 4 p.m. ET with a lot riding on the vote on CEO Elon Musk’s pay deal.
Yahoo Finance’s Pras Subramanian lays out the high stakes and what to watch:
Read more here.
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Robinhood stock ticks lower as 300% jump in crypto revenue leaves some wanting more
Robinhood (HOOD) shares edged lower in premarket as investors digested the trading platform’s third quarter earnings release.
Yahoo Finance’s Ines Ferré reports:
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Housing issues cause James Hardie shares to plummet
Bloomberg reports:
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