U.S. stock index futures remained largely unchanged on Thursday evening as investors navigated a mix of trade uncertainty and disappointing earnings from retail giant Walmart. Recent commentary from the Federal Reserve also pointed to a cautious outlook, with few expectations for imminent interest rate cuts.
Futures held steady after a subdued session on Wall Street, where concerns over a slowing economy were amplified by Walmart’s weaker-than-expected quarterly earnings. The stock market also faced some profit-taking after the S&P 500 reached a series of record highs earlier in the week.
S&P 500 Futures stabilized at 6,138.50 points, while Nasdaq 100 Futures saw a modest increase of 0.1%, rising to 22,166.25 points by 19:07 ET (00:07 GMT). Dow Jones Futures also edged slightly higher, moving to 44,293.0 points.
Trump’s Tariff Threats Weigh on Sentiment
President Donald Trump’s renewed threats of trade tariffs added to investor jitters, with the president proposing new duties of 25% on several sectors, including automobiles, pharmaceuticals, semiconductors, and lumber. These threats have fueled fears of a rekindled global trade war, leaving investors uncertain about whether these measures are serious or just a negotiating tactic.
Trump also reiterated his intention to impose reciprocal tariffs on major U.S. trading partners, potentially beginning as early as April. This marks one month into his term, during which he has already introduced tariffs on Chinese goods and steel and aluminum imports.
Weak Walmart Earnings and Fed’s Cautious Tone Add to Pressure
Walmart’s disappointing earnings for the December quarter weighed heavily on the market, with the stock losing 6.5% during Thursday’s session. The retail giant’s underperformance raised concerns about a potential slowdown in U.S. consumer spending, which has been a key driver of the economy.
The downturn in Walmart shares also spread to other retail stocks, as investors grew wary of a cooling retail sector. Additionally, shares of Block Inc (NYSE:XYZ), now known as XYZ, dropped 6% in after-hours trading following softer-than-expected earnings.
Risk appetite was further dampened by comments from several Federal Reserve officials, who signaled that interest rates are likely to remain steady in the near term. The minutes from the Fed’s January meeting, released earlier this week, revealed that policymakers are still concerned about persistent inflation and the potential inflationary impact of Trump’s trade policies.
Market Performance on Thursday
The S&P 500 ended the day down 0.4% at 6,117.63 points, while the NASDAQ Composite fell 0.5% to 19,962.36 points. The Dow Jones Industrial Average saw a more significant decline, dropping 1% to close at 44,176.90 points.
As global trade tensions and economic uncertainties weigh on investor sentiment, stock futures remain cautious, with markets awaiting further developments.
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