US markets opened lower on Thursday as investors analysed a mix of company earnings reports. Worries about Trump tariffs, high stock prices, and unclear economic data kept investors nervous.
In the early hours of trading, the Dow Jones Industrial Average dropped by 55.9 points, or 0.12%, to 47,255.12. S&P 500 fell by 8.7 points, or 0.13%, to 6,787.59, and the Nasdaq Composite declined 38.5 points, or 0.16%, to 23,461.29.
Supreme Court justices on Wednesday questioned whether President Donald Trump’s tariffs were legal. The case could have a big impact on the global economy and test how much power a president really has.
Both conservative and liberal justices asked if Trump had gone beyond his authority by using a 1977 emergency law to impose tariffs, a law meant for national crises, not regular trade issues. However, some conservative justices noted that presidents usually have broad power over foreign policy, indicating the Court could be split when it makes its final decision. If the Court rules the tariffs illegal, it could seriously affect the US economy and international trade.
Investors are also gauging the latest company earnings report. Some of the recent updates include AMD reporting record third-quarter revenue of $9.2 billion, up 36% from last year, due to strong demand for its processors and AI chips. Net income hit $2 billion, with earnings of $1.20 per share.
Arm Holdings beat expectations with earnings of 39 cents per share, pushing its stock up nearly 3%. Figma reported better-than-expected revenue and raised its yearly outlook, showing strong AI-related growth. Lyft earned 11 cents per share, above the 8 cents expected, lifting its stock by 3–6%.
DoorDash’s revenue topped forecasts, but profits fell short due to higher research and development costs, causing its stock to drop. Rockwell Automation rose after reporting better-than-expected results, indicating strength in industrial automation.
Datadog shares jumped 9% after it raised its full-year profit and revenue forecast, showing strong demand for cloud services. Moderna shares gained 5% even though it reported a quarterly loss, losses were smaller than expected.
Qualcomm shares slipped 2% after warning about possible business losses with Samsung next year, despite beating quarterly forecasts