U.S. stock futures indicate a downward trend as traders keep a close watch on trade developments emerging from the White House while also focusing on a range of corporate earnings reports. President Donald Trump expresses his aspiration to reach a “fair deal” with China, yet ambiguity persists regarding whether this will signify a de-escalation in the current trade conflict between Washington and Beijing. Google-owner Alphabet is set to release its earnings report following the closing bell, whereas American Airlines is expected to disclose its results amid significant uncertainty in the travel sector.
U.S. stock futures dipped slightly on Thursday, as investors monitored potential shifts in President Donald Trump’s tariff policies alongside a series of significant corporate earnings reports.The Dow Futures contract experienced a decline of 189 points, equivalent to 0.5%. Meanwhile, S&P 500 futures saw a decrease of 20 points, or 0.4%, and Nasdaq 100 futures fell by 95 points, also representing a 0.5% drop.
The primary indices on Wall Street experienced an uptick in the previous session, supported by an indication from Trump that he was open to reducing trade tensions with China. Treasury Secretary Scott Bessent remarked that the exorbitant tariffs between the world’s two largest economies were unsustainable, thereby bolstering expectations for a thaw in relations between Washington and Beijing. Equities, however, retraced their earlier gains, with traders observing that the White House’s concessions on tariffs will not completely mitigate the significant trade challenges confronting the U.S. economy, according to analysts at Vital Knowledge.
Additionally, contributing to the positive sentiment were Trump’s assurances earlier this week that he had “no intention” of firing Federal Reserve Chair Jerome Powell, a remark that provided some relief to anxious markets concerned about potential presidential interference in the central bank’s independence. Stocks have exhibited volatility over the week, experiencing a sharp drop on Monday, succeeded by two days of robust recovery, as investors remain vigilant regarding the frequently unpredictable policy shifts emanating from the White House.
Shares in Tesla experienced an uptick following remarks from CEO Elon Musk, who informed analysts of his intention to considerably diminish his engagement with the Trump administration and redirect his efforts towards overseeing his various enterprises. The statement served to mitigate a significant decline in the electric car manufacturer’s overall quarterly net profit. In remarks to the press on Wednesday, Trump expressed his desire to achieve a “fair deal” with China concerning trade, yet he refrained from providing any detailed information regarding potential negotiations with Beijing. Trump has positioned China as a primary focus of his assertive tariff strategy, elevating duties on imports from the nation to a minimum of 145%. This has prompted a retaliatory action from China, which has increased tariffs on U.S. products to 125%.
Scott Bessent, the U.S. Treasury Secretary, indicated that these elevated tariff levels must be reduced prior to any further discussions; however, he emphasized that Trump would not undertake such a decision independently. “Neither side believes that these are sustainable levels,” Bessent stated. The remarks follow a report from the Wall Street Journal indicating that the White House is contemplating reducing its stringent tariffs on China to as low as 50% to aid in negotiations. However, officials from the Trump administration will not proceed unilaterally, as reported by Reuters, citing a source familiar with the situation.
Google-parent Alphabet is set to release its quarterly results after the bell on Thursday, joining the ranks of the significant “Magnificent Seven” cohort of mega-cap tech firms to report. Investors will be eager to observe the perspective of the search giant regarding the evolution of advertising expenditure in the upcoming quarters, as apprehensions grow that the unpredictability surrounding Trump’s fluctuating tariffs may prompt numerous clients to curtail their marketing budgets. Businesses have already indicated that the unclear trade outlook has rendered investment decisions more complex.
Artificial intelligence is poised to significantly influence the returns as well. Similar to numerous companies in the technology sector, Alphabet has been investing significantly to leverage AI capabilities. However, concerns have arisen regarding the potential return on these investments following the introduction of a competitive, low-cost model by the Chinese start-up DeepSeek earlier this year. Google is encountering increasing regulatory hurdles, especially following a judge’s ruling last week that the company unlawfully dominates two markets for online advertising technology. The ruling could provide a framework for U.S. antitrust prosecutors to pursue the dismantling of Google’s advertising services.
Before the opening bell on Wall Street, investors will have the opportunity to analyze a new set of corporate earnings reports. Among these will be results from American Airlines, which may offer further insight into the potential effects of trade tensions on the travel industry. On Wednesday evening, Southwest Airlines joined the ranks of U.S. carriers that have withdrawn a significant portion of their financial guidance, as the industry contends with uncertainty regarding consumer reactions to the economic challenges presented by the tariffs. Travel, frequently categorized as discretionary expenditure, faces the possibility of potential customers reducing their spending on trips. “Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends,” Southwest said in a statement, adding that it is not reiterating its full-year 2025 or 2026 core earnings forecasts. Shares in Southwest experienced a decline during after-hours trading. In a similar vein, Alaska Air Group retracted its guidance on Wednesday, citing broader economic uncertainty, a decision mirrored by Delta Air Lines and Frontier. United Airlines also indicated last week that it was impossible to predict economic changes over the rest of the year.
On Thursday, gold prices experienced an uptick, recovering from previous declines amid ongoing uncertainties regarding a potential easing of tensions in the U.S.-China trade conflict. Bullion experienced a decline from its record highs this week following Trump’s suggestion of a potential reduction in the significant trade duties imposed on China. However, the persistent ambiguity regarding Trump’s forthcoming tariff strategies rendered the decline of the yellow metal temporary. In the interim, oil prices stabilized following a decline in the prior session, attributed to reports indicating a rise in supply from the Organization of the Petroleum Exporting Countries. On Wednesday, both the Brent and West Texas Intermediate crude contracts concluded approximately 2% lower, following a Reuters report indicating that multiple oil-producing nations within the OPEC group are advocating for an expedited increase in output for June, thereby extending the unexpected boost seen in May. OPEC+ is scheduled to convene next month to finalize the June plan.