S&P 500 futures ticked higher early Thursday, following the end of the index’s four-day losing streak. Investors were focused on Nvidia’s latest financial results, which showed strong performance despite some mixed reactions.
Futures and Market Movements
Futures tied to the broad market index inched up, with Nasdaq 100 futures gaining 0.28%. Dow Jones Industrial Average futures increased by 65 points, or 0.15%.
Nvidia shares were slightly lower even though the chip company exceeded fourth-quarter estimates on both revenue and earnings. The company also issued strong guidance, reflecting sustained demand, particularly in the artificial intelligence sector. On the other hand, Salesforce saw a 5% drop following disappointing fourth-quarter revenue and weaker guidance.
President Trump’s Trade Policies Create Concern
Stocks pulled back from their session highs on Wednesday due to rising concerns over President Donald Trump’s trade policies. At his first cabinet meeting, he confirmed that tariffs on goods from Canada and Mexico would take effect, and he announced a 25% tariff on goods from the European Union.
The S&P 500 posted a slight gain of just 0.01% on Wednesday, ending its four-day losing streak. Meanwhile, the Dow Jones dropped 188 points, or about 0.4%, and the Nasdaq Composite added nearly 0.3%.
Market Analysis: Caution Advised
Fawad Razaqzada, market analyst at Forex, advised caution, saying, “The remarkable strength of equities in recent months suggests that any downside should be approached with care. For the bulls, a corrective move lower wouldn’t be unwelcome, as it could present more attractive entry opportunities in the future. But today, everything else may well play second fiddle to Nvidia’s earnings result.”
Economic Concerns Weigh on Stocks
Recent economic reports, including a weaker-than-expected consumer confidence reading, disappointing retail sales numbers, and a weak consumer sentiment report, have raised concerns about the health of the U.S. economy. These reports have contributed to market jitters.
What’s Next for Traders?
Traders are focused on Thursday’s weekly jobless claims report, but they are also looking ahead to Friday’s personal consumption expenditures (PCE) price index, which is the Federal Reserve’s preferred gauge of inflation.
Upcoming Earnings Reports
On the earnings front, Warner Bros. Discovery and Dell Technologies are scheduled to report their results on Thursday.
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