Futures for the major U.S. stock indexes are pointing toward a mostly unchanged open on Thursday, suggesting a pause after gains in the previous session.
Uncertainty surrounding President Donald Trump’s trade policy stance continues to weigh on investor sentiment, keeping some traders cautious amid ongoing threats of tariff hikes across various industries and countries.
“Trump keeps throwing out numbers left and right, and investors have started to tune out anything that isn’t concrete,” said Dan Coatsworth, investment analyst at AJ Bell. “Many of his decisions have been reversed, forgotten, or delayed, so investors are refocusing on economic data and corporate news as the main market drivers.”
Following a flat and volatile Tuesday, stocks advanced for much of Wednesday. Despite some pullbacks early in the day, indexes climbed back to close firmly in positive territory.
The tech-heavy Nasdaq led the charge, rising 192.87 points, or 0.9%, to a record close at 20,611.34. The S&P 500 gained 37.74 points, or 0.6%, to 6,263.26, while the Dow Jones Industrial Average added 217.54 points, or 0.5%, closing at 44,458.30.
Wall Street’s rally was partly fueled by optimism over a possible trade agreement between the U.S. and the European Union. The Financial Times reported that EU negotiators are nearing a deal that would establish higher tariffs than those extended to the U.K.
Nvidia (NASDAQ:NVDA), a leader in AI technology, boosted the markets further with a 1.8% jump, briefly becoming the first company ever to surpass a $4 trillion market capitalization.
Trade developments remained in focus as President Trump shared additional tariff threat letters on Truth Social, addressing leaders from the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka, following a batch sent to 14 other countries earlier in the week.
In other news, the Federal Reserve released minutes from its June monetary policy meeting. Most participants agreed the Fed is well-positioned to wait for more clarity on inflation and economic prospects before making further rate adjustments. They described the current monetary stance as moderately restrictive while noting continued strength in economic growth and labor markets.
Housing stocks posted strong gains, with the Philadelphia Housing Sector Index surging 2.9% to its highest close in over four months. Gold stocks also showed notable strength, as the NYSE Arca Gold Bugs Index climbed 1.9%.
Biotech and utility shares performed well, while oil service stocks declined after Tuesday’s rally, with the Philadelphia Oil Service Index dropping 1.1%.
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