New York City, U.S. – Stock futures took a slight dip on Thursday following two consecutive days of gains by the major averages. Futures connected to the S&P 500 and Nasdaq-100 were down by 0.3%, while Dow Jones Industrial Average futures dropped by 170 points, or 0.4%.
Wednesday saw strong performances by the major averages, with each rising by more than 1%. Despite this, they closed the day below their peak levels. At one point, the Dow was up by over 1,100 points.
Trade tensions between the United States and China seemed to provide a boost to the stock market. President Donald Trump expressed openness to less confrontational trade talks with Beijing earlier in the week. Treasury Secretary Scott Bessent mentioned the possibility of a significant trade deal with China on Wednesday. Chinese imports currently face a U.S. tariff of 145%.
Chief Investment Officer Gaurav Mallik of Pallas Capital Advisors noted that while the more positive stance on tariffs is encouraging, the market is still range-bound as the ultimate goal remains reversal of tariffs or substantial trade agreements. He believes that the ongoing market correction may take a few months to resolve.
Contrary to the optimistic outlook, China denied holding any trade discussions with the U.S. and called for the removal of “unilateral” tariffs. President Trump also declared his intention not to dismiss Federal Reserve Chairman Jerome Powell, which improved market sentiment given recent tensions between the two. IBM saw a drop of over 7% despite exceeding earnings and revenue expectations for the first quarter.
Southwest Airlines experienced a 4% decrease after announcing plans to reduce its schedule in the second half of the year and withdrawing its 2025 and 2026 earnings guidance. Investors eagerly await quarterly earnings reports from Alphabet, Intel, and PepsiCo, along with updates on durable goods orders and weekly jobless claims.