US stock futures are pointing to a softer open on Thursday, pulling back after two days of robust gains that were fueled by hopes of a resolution in the long-running U.S.-China trade war and renewed market confidence in Federal Reserve Chairman Jerome Powell’s tenure. For traders navigating today’s market, this shift in sentiment is a sharp reminder of how swiftly headlines and policy signals can reshape the short-term investing landscape.
On Thursday morning, futures tied to the Dow Jones Industrial Average were down about 0.5%, with the S&P 500 and Nasdaq futures also in the red, off by 0.3% and 0.1% respectively. This dip comes just after Wall Street staged a powerful rally earlier in the week, sparked by optimism that President Trump might roll back some tariffs and drastically reduce the 145% levy currently imposed on Chinese imports. The S&P 500 had surged 4% over the past two sessions, while the Nasdaq and Dow also posted notable gains. However, the relief rally lost steam as investors digested mixed signals from Washington and Beijing on the actual status and prospects for trade negotiations.
The initial excitement was driven by reports suggesting a possible easing of tariffs—a move that would be broadly positive for global supply chains and consumer sentiment. But those hopes were tempered after Treasury Secretary Scott Bessent clarified there was “no unilateral offer” from the White House to scale back tariffs, while Chinese officials revealed that trade negotiations had not even started and continued to seek a total elimination of tariffs. The resulting policy flip-flop injected fresh uncertainty into markets, leaving investors wary of overcommitting to risk assets in the absence of concrete progress.
For active traders and investors, Thursday’s market action underscores the importance of staying nimble and closely monitoring both macro headlines and corporate earnings. Several major companies are at the center of pre-market moves: IBM shares are down 6% on earnings, while Procter & Gamble and Comcast are off 1% and 4%, respectively. On the upside, Texas Instruments and ServiceNow both spiked around 9% after reporting strong quarterly results. Meanwhile, the world’s largest tech stocks—Apple, Alphabet, Meta Platforms, Tesla, and Broadcom—are largely unchanged, and Alphabet is set to report after the closing bell.
Despite Thursday’s pullback, all three major indices remain on track for gains this week, with the Nasdaq up 2.6%, the S&P 500 up nearly 1.8%, and the Dow holding a 1.2% advance. But sentiment remains fragile as traders eye key upcoming data releases for signals on the health of the U.S. economy and the future path of interest rates.
The latest market swings highlight a core truth for financial market participants: policy uncertainty—especially around trade and central bank leadership—can drive volatility and upend trading strategies in an instant. As investors weigh the next moves from both Washington and Beijing, and remain alert for any Fed policy surprises, the best approach is a flexible mindset and a careful watch on portfolio risk as the headlines—and markets—continue to shift.
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