US stock futures indicated fresh losses on Thursday as continued fears over sustained high interest rates and a significant drop in Salesforce (CRM) stock weighed on investor sentiment.
Dow Jones Industrial Average futures (YM=F) fell 0.9%, following a 400-point loss on Wednesday. S&P 500 futures (ES=F) fell 0.4% and Nasdaq 100 futures (NQ=F) fell about 0.3%.
The stock market has been under pressure due to renewed concerns about the Federal Reserve’s possible delay in cutting interest rates, driven by inflation data that remains higher than expected. Additionally, hopes for a broad market rally fueled by strong earnings from Nvidia (NVDA) did not come true.
These interest rate fears have driven US bond yields to their highest levels since early May, with the 10-year Treasury yield (^TNX) topping 4.5%. Although it fell slightly on Thursday, it remained above 4.6%.
Salesforce added to the market’s woes, with its shares falling 15% in premarket trading after the company projected the slowest sales growth in its history.
Focus is now on Thursday’s economic data release as investors look for signs of the U.S. economy’s resilience, which could complicate the Federal Reserve’s efforts to cut interest rates. Reports on first quarter GDP and weekly jobless claims are expected.
Retail earnings reports provided additional information on consumer behavior and economic health. Shares of Kohl’s (KSS) plunged after reporting an unexpected quarterly loss and cutting its annual sales forecast. Best Buy (BBY) also reported a larger-than-expected drop in comparable sales as consumers became more cautious with their spending.
Chewy’s unexpected rise
Chewy (CHWY) saw its share price rise 27% after reporting better-than-expected quarterly results, although shares fell slightly premarket. Despite the year-on-year decline in the number of active customers, the company’s margin improvement and positive demand outlook impressed investors. CEO Sumit Singh emphasized the improving demand environment and detailed plans to open additional veterinary clinics, with the goal of integrating them with Chewy’s online services.
Increase in PC demand
HP Inc. (HPQ) shares rose 3% in premarket trading after reporting strong quarterly results. CEO Enrique Lores cited an increase in companies upgrading their computers ahead of the October 2025 deadline for the end of support for Windows 10. The introduction of HP’s AI-powered PCs is expected to further drive this upgrade cycle. Evercore ISI analyst Amit Daryanani believes HP is well positioned to benefit from this trend and predicts an acceleration in growth in the second half of the year and into FY25.
Challenges for Salesforce
Salesforce (CRM) shares fell 16% in premarket trading following a disappointing earnings report. The company’s performance obligations grew 10%, below the 11% expected, and the earnings call highlighted economic concerns affecting deal closing. Citi analyst Tyler Radke noted that the weak second-quarter guidance could indicate continued challenges such as competition and deal delays. With slower growth and uncertain forecasts, analysts remain cautious, waiting for a more stable economic environment before becoming more optimistic about Salesforce’s prospects.
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