US stock futures showed little movement on Thursday as Wall Street reacted to the recently announced trade truce between Presidents Trump and Xi, which has reduced expectations for another interest rate cut by the Federal Reserve. The Dow Jones Industrial Average futures dipped by 0.3%, while futures for the broader S&P 500 and the tech-focused Nasdaq 100 hovered around the neutral mark.
The market has displayed a lack of momentum following comments from Fed Chair Jerome Powell, who stated that a rate cut in December is “not a foregone conclusion — far from it.” This sentiment came after the central bank lowered its benchmark rate by a quarter percentage point, highlighting existing divisions among policymakers regarding the pace of monetary easing.
The overnight meeting between Trump and Xi did not provide the anticipated market boost, despite establishing a one-year trade truce. Under this agreement, the US will reduce fentanyl-related tariffs on China by 50%, while China will halt restrictions on rare earth supplies for a year. Additionally, China has committed to resuming purchases of American soybeans.
Investors are now anticipating the quarterly earnings reports from major tech companies, including Apple and Amazon, which are set to be released after market hours. This comes on the heels of mixed performance from other prominent firms, known as the “Magnificent Seven,” including Alphabet, Meta, and Microsoft. Alphabet’s shares surged over 7% following its positive earnings report, while Meta experienced a nearly 8% decrease, and Microsoft fell nearly 3% as analysts scrutinized their forward guidance.
In other noteworthy market developments, shares of Metsera increased by over 20% in early trading after Novo Nordisk made a $6.5 billion unsolicited bid to acquire the obesity-focused biotech, aiming to overshadow Pfizer’s previously agreed transaction with Metsera. Novo’s offer of $56.50 per share includes potential additional payments contingent upon specific achievements, although Novo’s own shares fell by roughly 3%, and Pfizer’s stock remained relatively stable.
As economic indicators accumulate, investors are preparing for a series of data releases that include initial jobless claims, continuing claims, personal consumption data for the third quarter, and the annualized GDP for the same period. The earnings calendar also shows a busy lineup featuring major companies such as Eli Lilly, Mastercard, and Merck & Co.
Meanwhile, Eli Lilly shares increased by 5% premarket after the company raised its full-year profit and revenue forecasts, attributing the adjustment to strong demand for its weight-loss and diabetes medications, Zepbound and Mounjaro.
In premarket trading, Alphabet’s stock was buoyed by impressive quarterly results, while Estee Lauder’s shares gained 5% following its earnings report that surpassed Wall Street’s expectations. Conversely, Chipotle saw its stock plummet nearly 20% after lowering its full-year sales guidance due to declining customer traffic amid rising living costs.
Microsoft shares faced headwinds after a disappointing report on Azure sales, though analysts noted that strong Azure performance could bode well for other upcoming tech company earnings.
Overall, the market remains in a watchful state, trying to navigate economic indicators, earnings season, and international trade dynamics, while assessing the implications of the recent trade truce between the US and China.
