U.S. stock index futures showed slight declines on Thursday evening following the S&P 500’s record closing high. Investors digested the impact of corporate earnings reports and President Donald Trump’s call for lower interest rates in his speech at the World Economic Forum in Davos.
Futures Edge Lower
By 18:45 ET (23:45 GMT), S&P 500 Futures were down 0.1%, at 6,147.0 points, while Nasdaq 100 Futures also slipped 0.1%, to 22,009.25 points. Dow Jones Futures were slightly lower at 44,727.0 points.
Trump’s Remarks at Davos: Rate Cuts and Trade Policy
In his virtual address at the World Economic Forum on Thursday, President Trump highlighted his administration’s efforts to revive the U.S. economy. He specifically called for immediate cuts in interest rates, both in the U.S. and globally, which sent a positive signal to investors ahead of next week’s Federal Reserve meeting.
Despite lowered expectations for rate cuts following the Fed’s December meeting, the latest inflation data and Trump’s comments on economic policies helped lift investor sentiment.
Trump also warned companies that shift production abroad could face significant tariffs, aiming to strengthen U.S. domestic industries and reduce trade deficits.
Additionally, Trump addressed the issue of global oil prices, urging OPEC and other oil-producing nations to lower prices. He argued that reducing oil revenue would weaken funding for conflicts such as the Russia-Ukraine war, and suggested that lower oil prices could expedite a resolution by cutting off financial support for Russia’s military actions.
Stock Market Performance
The S&P 500 ended the day 0.5% higher at a record high of 6,118.72 points. Meanwhile, the Dow Jones Industrial Average rose 0.9% to 44,565.26, and the NASDAQ Composite gained 0.2%.
Notable Movers
GE Aerospace reported better-than-expected fourth-quarter sales and profits, leading to a 6.6% increase in its stock price.
Union Pacific Corporation saw a 5.2% rise in its shares after exceeding profit estimates, benefiting from lower fuel costs and improved operational efficiency.
Stocks in Decline
Electronic Arts stock dropped 16.7% after the video game publisher lowered its net bookings guidance, citing weaker performance in several titles, especially its soccer franchise.
American Airlines shares fell 8.7% after the airline projected a higher-than-expected loss for the first quarter, despite exceeding earnings expectations for the fourth quarter.
Materials Sector
Alcoa and Freeport-McMoran both reported strong earnings for the fourth quarter but saw their stock prices fall by over 4% due to concerns over potential new tariffs on aluminum imports from Canada.
Looking Ahead
Markets will be watching closely as more quarterly earnings reports are due on Friday, including those from Verizon Communications and American Express. The continued focus will be on economic data and further developments in President Trump’s trade and monetary policy.
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