Good morning and welcome to Markets Desk. Here is where things stand heading into Wednesday's session.
Nasdaq futures are under pressure this morning after Alphabet posted a disappointing earnings report, sending shares of the Google parent down more than ten percent in premarket trading. The miss has reignited anxiety across the tech sector about the sustainability of AI capital spending, and investors are repricing that risk quickly.
Shifting to the pharmaceutical space, Merck reported third quarter profits that came in below year-ago levels, adding another layer of caution to a sector already navigating patent cliffs and pipeline uncertainty. The retreat in earnings underscores the pressure legacy drugmakers face as blockbuster revenue cycles wind down.
Across the Atlantic, Christine Lagarde is set to step down early as president of the European Central Bank, a significant development given the timing. Europe is contending with renewed inflationary pressure and mounting sovereign debt concerns, meaning her departure leaves a critical policy seat vacant at one of the most consequential moments in the eurozone's recent history.
That's the tape. Markets Desk, signing off the floor.
