Market Uncertainty Reigns as Trump’s Tariff Plans Remain Murky
The US stock market stumbled on Thursday, retreating from a potential record-breaking streak as optimism surrounding artificial intelligence (AI) began to wane. Investors are now eagerly awaiting more details on President Donald Trump’s tariff plans, which could have significant implications for inflation and the overall market.
Tech Stocks Struggle to Regain Momentum
S&P 500 futures slipped by roughly 0.2%, breaking a three-day winning streak that had brought the benchmark index to the cusp of a new all-time high. Meanwhile, Nasdaq 100 futures fell 0.5% as tech stocks struggled to regain the momentum that had driven the previous day’s gains. Shares of megacap tech companies like Nvidia, Apple, and Alphabet lost ground in pre-market trading.
Trump’s Speech at Davos Takes Center Stage
Investors are now focused on Trump’s speech at the World Economic Forum in Davos, where he is expected to provide more insight into his trade policy. The uncertainty surrounding his “shock and awe” approach has left many wondering when the outlined tariffs on major trading partners will take effect.
Earnings Reports Take Center Stage
Earnings reports are expected to provide a much-needed boost to the market, following Netflix’s strong performance. GE Aerospace shares surged after the company reported a stronger full-year profit and announced plans to increase its share buybacks and dividend. However, American Airlines stock slid after the company issued a downbeat 2025 profit forecast. Quarterly reports from Texas Instruments and Alaska Airlines are also expected to be released on Thursday.
US Jobless Claims Rise
The latest government data released on Thursday morning showed that US jobless claims increased by 6,000 to 223,000, exceeding economists’ expectations of 220,000. This news added to the market’s uncertainty, as investors continue to navigate the complex landscape of trade policies and economic data.
Other Key Stories
In other news, Tesla plans to significantly hike prices for all its EV models sold in Canada, while Amazon will close its warehouses in Quebec, resulting in the loss of approximately 1,700 jobs. Additionally, Intel is racing to find its next CEO before it sinks into irrelevance, and Musk clashed with OpenAI’s Altman over ‘Stargate’.
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