U.S. stock futures saw a slight uptick early Thursday, as investors balanced promising corporate earnings against escalating concerns surrounding the ongoing trade war between the United States and China. Futures for the Dow Jones Industrial Average rose by 0.1%, while those for the S&P 500 climbed about 0.2%. The tech-heavy Nasdaq 100 futures increased by 0.3%, following a day of mixed but overall positive trading on Wall Street.
Market participants are preparing for increased volatility as trade tensions between the U.S. and China continue to escalate. On Wednesday, President Trump confirmed the existence of a trade war, while Treasury Secretary Scott Bessent mentioned that a pause in U.S.-China tariffs could potentially be extended. These conflicting messages come amid a flurry of threats from Trump aimed at further restricting trade with China, in response to new sanctions and export controls imposed by Beijing.
Investor sentiment has found some support from strong quarterly earnings reported by major Wall Street banks, alongside optimistic expectations for more interest rate cuts from the Federal Reserve later this year. As the earnings season continues, notable companies such as Taiwan Semiconductor Manufacturing Company and Charles Schwab are set to report their results on Thursday.
In after-hours trading, United Airlines experienced a decline in its shares due to disappointing revenue figures. Conversely, Salesforce saw its stock rise following an optimistic outlook driven by an intensified focus on artificial intelligence.
Another factor influencing the market is the ongoing U.S. government shutdown, which has now reached its third week. This shutdown is affecting the availability of essential economic data for both the Federal Reserve and Wall Street, and expectations suggest it may extend into November.
The latest developments underscore a complex landscape for investors, as they navigate the dual challenges of geopolitical tensions and domestic economic disruptions while seeking opportunities in corporate earnings reports.
