- Stock futures weakened Thursday, with S&P 500 futures down 5 points (0.09%) to 5,396.75 and Dow futures falling 171 points (0.43%) to 39,604, after China confirmed no ongoing U.S. trade negotiations, dampening hopes of easing tensions.
- The U.S. Dollar Index dropped 0.42% to 99.43, while market sentiment was bolstered by President Trump’s assurance not to fire Federal Reserve Chairman Jerome Powell, despite earlier criticisms.
- Corporate setbacks included IBM (IBM) shares dropping 6.4% premarket due to cost cuts affecting 15 government contracts and Chipotle (CMG) shares falling nearly 2% after missing first-quarter earnings and lowering its 2025 forecast.
Stock futures reflected a cautious market mood on Thursday, with futures tied to the S&P 500 dipping 5 points, or 0.09%, to 5,396.75, and Dow Jones Industrial Average futures falling 171 points, or 0.43%, to 39,604, after China’s Ministry of Commerce declared no ongoing trade negotiations with the U.S., quashing hopes of de-escalating tensions. Nasdaq-100 futures, however, edged up 22 points, or 0.12%, to 18,826.00, buoyed by resilience in technology-heavy indices. The setback followed a robust Wednesday, when the major averages each gained over 1%, with the Dow at one point surging more than 1,000 points, driven by optimism about potential trade relief. Earlier signals from President Donald Trump, who expressed openness to a less confrontational stance on trade with Beijing, and Treasury Secretary Scott Bessent’s mention of a “big deal” opportunity had fueled market enthusiasm. Yet, China’s dismissal of reported progress as “groundless” and its demand for the U.S. to lift all unilateral tariffs, currently at 145% on Chinese imports, underscored persistent friction, tempering investor sentiment.
The U.S. Dollar Index slid 0.42% to 99.43 from 99.84, reflecting uncertainty in global trade dynamics. Market sentiment was further supported by Trump’s Tuesday statement that he had “no intention” of dismissing Federal Reserve Chairman Jerome Powell, whose term extends to May 2026, easing concerns about monetary policy disruptions despite earlier tensions, including Trump’s remark labeling Powell a “major loser.” In corporate developments, IBM shares dropped more than 6% after disclosing that 15 government contracts were affected by Trump administration cost cuts, while Chipotle (CMG) shares fell nearly 2% following a first-quarter earnings miss and a lowered 2025 forecast. Attention now turns to upcoming earnings from Alphabet (GOOG, GOOGL) and Intel (INTC), with Intel’s report marking the first under new CEO Lip-Bu Tan. Despite Wednesday’s rally, which saw the S&P 500 climb over 4% in two days, Thursday’s pullback highlights the market’s sensitivity to U.S.-China trade developments and the broader economic implications of policy shifts, keeping investors on edge as they await further corporate and macroeconomic cues.
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