U.S. stock index futures are pointing to a slightly weaker open on Friday, suggesting markets may give back some recent gains following two consecutive sessions of sharp advances.
After the strong rebound seen over the past two days—one that largely erased Tuesday’s steep selloff—some investors appear poised to lock in profits. The recent upswing was driven in part by relief that President Donald Trump ruled out the use of military force to seize Greenland and softened his stance on potential tariffs against Europe tied to the Arctic territory dispute.
That optimism may now be fading as Trump’s focus appears to have shifted back toward Iran. Speaking to reporters aboard Air Force One on Thursday, the president said a U.S. “armada” was heading toward the Middle East.
“We’re watching Iran,” Trump said. “You know we have a lot of ships going in that direction just in case. We have a big flotilla going in that direction and we’ll see what happens.”
Trump had previously walked back threats of military action against Iran following its crackdown on widespread protests, but his latest remarks have reintroduced an element of geopolitical uncertainty.
Adding pressure to futures, shares of Intel (INTC) were down nearly 13% in premarket trading. The semiconductor heavyweight is under strain after reporting stronger-than-expected fourth-quarter earnings while issuing lackluster guidance for the current quarter.
On Thursday, Wall Street extended its rebound, with stocks finishing mostly higher and building on Wednesday’s gains. The rally helped further offset Tuesday’s losses, pushing the Dow into positive territory for the week.
Although the major indices ended the session well below their intraday highs, they still posted solid advances. The Dow Jones Industrial Average rose 306.78 points, or 0.6%, to 49,384.01. The Nasdaq Composite gained 211.20 points, or 0.9%, to 23,436.02, while the S&P 500 added 37.73 points, or 0.6%, to close at 6,913.35.
The sustained rebound came as markets continued to benefit from easing tensions surrounding Trump’s Greenland ambitions. On Wednesday, the president ruled out military action in a public address and later said he had reached the “framework” of a deal regarding the Arctic territory.
Following that “framework” agreement with NATO Secretary General Mark Rutte, Trump stepped back from threats to sanction European nations that opposed his plans.
Some analysts have described the renewed strength in equities as a revival of the so-called “TACO trade,” short for “Trump Always Chickens Out,” a phrase used to describe the pattern of aggressive rhetoric followed by policy retreats that calm markets.
“There are a lot of similarities with the Liberation Day market wobble in April 2025 and now,” said Russ Mould, investment director at AJ Bell. “In both situations, Trump took an aggressive stance and then backed down after financial markets wobbled.”
He added, “The US president has a keen eye on what happens with bonds and stocks, and the last thing he wants is to be accused of destroying people’s wealth.”
On the economic front, the U.S. Labor Department reported a modest increase in first-time applications for unemployment benefits for the week ended January 17. Initial jobless claims edged up to 200,000, an increase of 1,000 from the prior week’s revised figure of 199,000.
Economists had been expecting claims to rise to 205,000 from the 198,000 initially reported for the previous week.
Meanwhile, separate data from the Commerce Department showed consumer prices rose in November broadly in line with economists’ forecasts.
Sector performance on Thursday was mixed. Gold-related stocks surged as bullion prices jumped sharply, with the NYSE Arca Gold Bugs Index climbing 4.4% to a record closing high. Telecom stocks also posted strong gains, reflected in a 2.1% rise by the NYSE Arca North American Telecom Index, which also finished at a record.
Technology-related sectors such as software, networking and biotechnology contributed to the Nasdaq’s outperformance, while real estate and housing stocks lagged the broader market.