Key Points
- U.S. stock futures rose slightly, with Dow Jones, S&P 500, and Nasdaq all showing gains.
- Cooling economic data fueled speculation that the Federal Reserve might cut interest rates.
- Amazon’s earnings report is highly anticipated and will focus on AI investment plans. Qualcomm and Arm stocks fell due to disappointing revenue forecasts.
- Oil prices rebounded after a sharp decline but remain under pressure due to rising U.S. crude stockpiles and potential trade tariffs.
U.S. stock index futures edged higher on Thursday as investors analyzed a wave of corporate earnings and awaited further labor market data. By early morning, Dow Jones Futures had risen by 0.32% or 145.00 to 45,149.00 USD, while S&P 500 Futures gained 0.18% or 10.75 to 6,097.25 USD. The Nasdaq 100 Futures also climbed 0.12% or 25.25 to 21,788.25 USD.
Wall Street indices advanced on Wednesday, aided by a drop in Treasury yields. This movement followed purchasing managers’ index data, which indicated a slowdown in the U.S. economy, particularly in the manufacturing sector. The data fueled speculation that an economic slowdown could push the Federal Reserve to cut interest rates despite inflationary pressures from President Donald Trump’s trade tariffs.
Earnings season continued to draw attention, with Amazon set to report its quarterly results later in the day. Analysts are expected to question the e-commerce giant’s artificial intelligence investment plans following heightened scrutiny of AI spending by major tech firms. Earlier this week, Alphabet projected higher-than-expected capital spending for 2025, contributing to a decline in its stock price. Meanwhile, executives at Meta and Microsoft have defended their own heavy AI investments, emphasizing the need to stay competitive in the rapidly evolving technology landscape.
Additional earnings reports were expected from pharmaceutical company Eli Lilly and fast-food conglomerate Yum! Brands. However, chip stocks faced challenges, with Qualcomm and Arm Holdings experiencing sharp declines in aftermarket trading. Qualcomm fell more than 5% premarket after forecasting no revenue growth for its patent licensing business in 2025 due to the expiration of its licensing agreement with China’s Huawei. Arm Holdings, meanwhile, dropped over 4% after issuing earnings guidance that aligned with expectations, disappointing investors who had hoped AI-driven demand would significantly boost sales.
Automaker Ford also faced market pressure, with its stock falling more than 6% premarket following a weaker-than-expected annual profit forecast. The company remains vulnerable to uncertainty surrounding the temporary pause of U.S. tariffs on imports from Canada and Mexico.
Investors were also awaiting additional labor market data, including the weekly initial jobless claims report. However, the key focus remained on Friday’s upcoming nonfarm payrolls report. This report is projected to show that the U.S. economy added 154,000 jobs in January, a decline from December’s 256,000. The unemployment rate is expected to remain at 4.1%.
Meanwhile, oil prices rebounded after Wednesday’s sharp decline. U.S. crude futures rose 0.8% to $71.57 per barrel, while Brent crude gained 0.7% to $75.12 per barrel. The market had suffered a more than 2% drop the previous day following a report from the Energy Information Administration showing that U.S. crude stockpiles surged by 8.7 million barrels, exceeding expectations. Oil prices remain under pressure, falling about 10% from their 2025 highs as investors prepare for a new wave of trade tariffs between the U.S. and China, including duties on energy products.
