US OPEN: Indices turn red after weak economic data and disappointing earnings

• Super Micro Computer shares tumbled after preliminary third-quarter results missed expectations

• First Solar shares plummeted after the solar company reduced its 2025 earnings guidance due to tariffs imposed by the Trump administration

• Starbucks shares fell after reporting a 1% comparable sales decline for the second quarter

• Norwegian Cruise Line shares plunged after reporting adjusted first-quarter EPS of 7.0 cents

US indices are showing significant declines today. The S&P 500 (US500) has dropped 1.19% to 5515.5, while the Dow Jones (US100) is down 1.58% to 19302.99. The Russell 2000 (US2000) is experiencing the largest decline among US indices, falling 1.66% to 1953.1. The US30 index has declined 0.88% to 40361. The VIX "fear index" has surged 3.77% to 24.23, indicating a notable increase in market anxiety. 

European indices are broadly negative today, with Polish W20 leading declines at -2.79% to 2713.6. Spain's SPA35 is down 1.87% to 13142, while Italy's ITA40 has dropped 1.69% to 36839. Other European markets showing losses include Austria's AUT20 (-0.98% to 3930), the Eurozone's EU50 (-0.95% to 5080.6), Germany's DE40 (-0.80% to 22482.6), and the Netherlands' NED25 (-0.59% to 868.92). France's FRA40 is down 0.25% to 7492.9, and the UK's UK100 has declined 0.18% to 8470.0.

Switzerland's SUI20 is the only European index showing gains, up 0.12% to 12049.

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by US100, is trading around 19,195 — a level that previously triggered an uptrend. Bulls will aim to reclaim the 50% Fibonacci retracement level, which has long served as a key support. Bears, meanwhile, will look to push below the 61.8% retracement level, targeting the September low at 18,379. The RSI is above the 48.5 mark, a level that has historically signaled a return to bullish momentum when breached. Meanwhile, the MACD is widening. Source: xStation 

Market News 

• Super Micro Computer shares tumbled as much as 16% after preliminary third-quarter results missed expectations, with adjusted EPS of 29-31 cents versus the estimated 53 cents and sales of $4.5-$4.6 billion falling short of the $5.35 billion consensus. The company attributed the shortfall to delayed customer platform decisions moving sales into the fourth quarter and cited higher inventory reserves for older generation products. The miss triggered a broader sell-off in the AI infrastructure sector, with Nvidia dropping 1.9%, Dell falling 3.1%, and other tech stocks declining. JPMorgan, which lowered its price target to $36 from $39, doesn't believe the miss represents an industry-wide demand slowdown, while Lynx Equity Strategies commented that there hasn't been "a fundamental change in end market dynamics."

• First Solar shares plummeted as much as 13% after the solar company reduced its 2025 earnings guidance due to tariffs imposed by the Trump administration, now expecting EPS of $12.50-$17.50, down from $17-$20 previously. The company also lowered its net sales forecast to $4.5-$5.5 billion from $5.3-$5.8 billion and cut its gross margin guidance to $1.96-$2.47 billion. First quarter results missed expectations with EPS of $1.95, below the estimated $2.48, though net sales slightly exceeded forecasts at $844.6 million. CEO Mark Widmar expressed confidence that "despite the near-term challenges presented by the new tariff regime," the long-term outlook for solar demand remains strong, particularly in the US market.

• Starbucks shares fell as much as 7.4% after reporting a 1% comparable sales decline for the second quarter, marking the fifth consecutive quarterly drop, with US comparable sales falling 2%. The company posted adjusted EPS of 41 cents, below the estimated 49 cents, and revenue of $8.8 billion, slightly missing expectations. "I'd be remiss if I don't first just mention the hard fact in front of us, which is that our Q2 2025 financial results were disappointing," said CEO Brian Niccol, who started in September. Goldman Sachs downgraded Starbucks to neutral from buy, citing a longer path to North America sales recovery, as the company works to speed up service through additional store workers and an algorithm to prioritize orders.

• Norwegian Cruise Line shares plunged as much as 20% after reporting adjusted first-quarter EPS of 7.0 cents, down from 16 cents a year ago and below the estimated 9.2 cents. Revenue decreased 2.9% year-over-year to $2.13 billion, while occupancy fell to 101.5% from 104.6% and passenger numbers dropped 9.2% to 669,099. The company lowered its full-year 2025 occupancy forecast to about 102.5% from 103.4% previously but maintained its annual adjusted EPS guidance of about $2.05. "While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives," said the company's CEO.