US stocks faltered before the bell on Thursday, retreating in a bid to hit new records as AI optimism faded and markets awaited more details on President Donald Trump’s tariff plans.
S&P 500 futures (ES=F) fell about 0.2%, following a three-day winning streak that saw the benchmark index close Wednesday on the verge of setting a new all-time high. Dow Jones Industrial Average (YM=F) futures traded virtually unchanged, with a record still within reach.
Meanwhile, Nasdaq 100 futures (NQ=F) fell 0.5% as technology stocks struggled to regain the momentum that fueled the previous day’s gains. Shares of Nvidia (NVDA) fell in premarket trading as mega-cap tech companies Apple (AAPL) and Google parent Alphabet (GOOG, GOOGL) also lost ground.
Investors are still digesting the political indictment from Trump’s early days, which boosted artificial intelligence and strengthened tech names but left unclear when the outlined tariffs on big trading partners, a risk to inflation and profits, might hit. actions. Attention now turns to Trump’s speech at the World Economic Forum in Davos on Thursday for more information on his “shock and awe” trade policy.
Yahoo Finance is present in Davos. See the latest from the world’s business leaders here.
Shares of Amazon (AMZN) and Tesla (TSLA) fell after trade moves by tech leaders in Canada, a prime tariff target for Trump. The e-commerce giant will close its warehouses in Quebec, with a loss of about 1,700 jobs, while Tesla plans sharp price increases on all its electric vehicle models sold in Canada.
Eyes are on earnings to provide a boost to markets, after Netflix set the tone. Shares of GE Aerospace (GE) rose after the jet engine maker reported higher full-year earnings and announced plans to increase its share buybacks and dividends. But shares of American Airlines (AAL) fell amid a downbeat earnings forecast for 2025. Quarterly reports from Texas Instruments (TXN) and Alaska Airlines (ALK) will also be on the agenda Thursday.
U.S. jobless claims rose by 6,000 to 223,000, according to the latest government data released Thursday morning. Economists had expected a reading of 220,000.
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