US stock futures edged higher Thursday after a rough session the day before, lifted by signs of progress in US-Japan trade talks that fueled hopes for tariff relief.
The rebound follows a sharp sell-off driven by concerns over the economic fallout of President Trump’s trade policies.
Futures attached to the Dow Jones Industrial Average (YM=F) rose 0.9%. The benchmark S&P 500 (ES=F) gained 1.1%. Futures for the tech-heavy Nasdaq Composite (NQ=F) ticked up 1.2%.
As of 5:55:20 AM EDT. Market Open.
YM=F ES=F NQ=F
Stocks extended their slide on Wednesday as Powell, speaking in Chicago, issued his starkest warning yet on how tariffs could affect the US economy. The Fed chair said the central bank would likely face a “challenging scenario” considering he expects the levies to exacerbate inflation and slow economic growth.
Read more: The latest on Trump’s tariffs
Powell also threw cold water on hopes the central bank would imminently slash interest rates as tariffs role in, saying Fed officials will “wait for greater clarity” on Trump’s trade policy.
Before and after Powell spoke, Nvidia shares tanked on news the chip giant would face new curbs from the US government on sales to China.
On Thursday, the focus for Wall Street will be Netflix’s (NFLX) quarterly earnings report, which is set for release after the bell. With Big Tech unsettled by Trump’s tariffs, the streaming giant has emerged as a rare bright spot among the group and investors hold high hopes for its results.
TSMC (TSM) reported a 60% surge in first-quarter net profit on Thursday, topping forecasts as booming demand for chips used in AI applications drove strong growth at the world’s largest contract chipmaker.
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