U.S. stock index futures were mostly flat on Thursday morning, as investors took a breather after Wall Street’s strong performance the previous day. Attention has now shifted to corporate earnings, economic data, and key remarks from President Donald Trump, all set to unfold throughout the day.
Stock Futures Movement
At 7:12 a.m. ET, Dow E-minis gained 29 points, or 0.07%, while S&P 500 E-minis declined by 11.5 points, or 0.19%. Nasdaq 100 E-minis fell by 123 points, or 0.56%.
On Wednesday, both the S&P 500 and the Dow reached their sixth consecutive day of gains in the last seven sessions. The S&P 500 even hit an intraday record high for the first time in over a month, signaling a strong recovery.
Market Drivers: AI, Earnings, and Economic Data
President Trump’s multi-billion-dollar plan to support artificial intelligence infrastructure, combined with strong results from Netflix, provided a boost to markets, which had been on the rebound since last week. Economic data indicating a cooling inflation despite solid economic growth has helped fuel this upward momentum.
However, in premarket trading, stocks in the AI sector, including Nvidia, fell by 1.7%, and Microsoft dropped by 0.7%. Chip stocks, such as Advanced Micro Devices and Broadcom, also experienced declines of 1.1% each.
Trade Policy and Tariffs: Focus on Trump’s Remarks
A sense of uncertainty looms over Trump’s trade plans, especially as he suggested that tariffs on imports from Canada, Mexico, China, and the European Union could be announced as early as February 1. However, analysts predict the major tariff announcements will likely be made on April 1.
Traders are also preparing for Trump’s virtual appearance at the World Economic Forum in Davos at 11:00 a.m. ET. His comments on international tax codes, particularly regarding the Organization for Economic Cooperation and Development’s (OECD) Global Minimum Tax, could impact markets. Analysts noted that Trump’s move to pull the U.S. out of the OECD tax deal on Monday could escalate trade tensions and affect the tech industry.
If tariffs are implemented, it could potentially slow down the Federal Reserve’s monetary easing, further complicating economic growth.
Economic Data and Jobless Claims
On the economic front, traders are looking ahead to the Labor Department’s report at 8:30 a.m. ET, which is expected to show that jobless claims stood at 220,000 for the previous week. The report may also reflect some impact from recent wildfires in California.
Corporate Earnings: Key Movers
Several companies reported earnings, with notable stock movements:
GE Aerospace surged by 5.9% after forecasting 2025 profits above expectations, driven by strong demand for aftermarket services.
Elevance rose by 4.2% after surpassing profit estimates for the fourth quarter, partly due to lower-than-expected healthcare spending for its members.
The strong performance from Elevance lifted other health insurers, with UnitedHealth Group, Centene, CVS Health, and Humana seeing gains between 1.4% and 2.6%.
In contrast, some companies faced declines:
American Airlines dropped by 7.5% after forecasting a 2025 profit below expectations.
Electronic Arts fell 15% after cutting its forecast for annual bookings, citing underperformance in its soccer video game franchise.
Micron slid by 3.6% after South Korean competitor SK Hynix warned of declining demand for memory chips used in smartphones and computers.
Markets remain cautious, with eyes on both economic data and upcoming corporate earnings reports as key drivers of market sentiment.
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