Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 23, 2025.
Brendan McDermid | Reuters
Stock futures slipped Thursday after the major averages posted a second straight winning day.
Futures linked to the S&P 500 were down 0.5%, while Nasdaq-100 futures traded 0.7% lower. Dow Jones Industrial Average futures lost 234 points, or 0.6%.
The major averages posted strong gains on Wednesday, rising more than 1% each. That said, they finished the day well off their highs. At one point on Wednesday, the Dow was up more than 1,100 points.
Stocks seemed to get a lift on hopes that trade tensions between the U.S. and China would ease. Earlier this week, President Donald Trump said he is willing to take a less confrontational approach toward trade talks with Beijing. Further, Treasury Secretary Scott Bessent said Wednesday that the U.S. has the “opportunity for a big deal” on trade. Chinese imports are subject to a U.S. tariff of 145%.
“While it’s encouraging to hear a more dovish tone on tariffs from the administration, stocks remain range-bound for the time being, as the ultimate goal for markets is either a reversal of the tariffs or significant trade deals,” said Gaurav Mallik, chief investment officer of Massachusetts-based Pallas Capital Advisors. “It can take a few months for corrections to end, and we still believe that this is a correction given the speed of the declines.”
In addition, Trump said late Tuesday that he has “no intention” of firing Federal Reserve Chairman Jerome Powell, whose term as Fed chair will end in May 2026. This seemed to boost sentiment in the market, particularly as the relationship between Trump and Powell has been growing more tense in recent days. Earlier this week, the president called Powell a “major loser.”
All three of the major averages are on pace for weekly gains, with the Nasdaq up 2.6% and the S&P 500 up nearly 1.8%. The Dow is on pace for a 1.2% advance in the period.
International Business Machines slumped more than 7%. The company posted better-than-anticipated earnings and revenue for the first quarter, but maintained its full-year guidance. Southwest Airlines lost 4% after the company said it plans to cut its schedule in the second half of this year and pulled its guidance for earnings before interest and taxes in 2025 and 2026.
On Thursday, investors will look for quarterly earnings reports from Alphabet, Intel and PepsiCo. On the economic data front, durable gods orders and weekly jobless claims are due in the morning.