The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a higher open on Thursday, with stocks likely to regain ground following the sell-off seen over the course of the previous session.
Traders may look to pick up stocks at reduced levels following yesterday’s steep losses on the heels of upbeat comments from President Donald Trump about trade talks.
Trump said in a post on Truth Social on Wednesday that “big progress” had been made in a meeting with the Japanese trade delegation.
“Had a very productive call with the President of Mexico yesterday,” he added in a post this morning. “Likewise, I met with the highest level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!”
However, a steep drop by shares of UnitedHealth (NYSE:UNH) is likely to weigh on the Dow, with the healthcare giant plunging by 18.5 percent in pre-market trading
The nosedive by UnitedHealth comes after the company reported weaker than expected first quarter earnings and cut its full-year profit forecast.
Stocks moved sharply lower early in the session on Wednesday and saw even further downside over the course of the trading day. The major averages all posted steep losses, with the tech-heavy Nasdaq under particularly heavy selling pressure.
The major averages climbed off their worst levels going into the end of the day but remained firmly negative. The Nasdaq plunged 516.01 points or 3.1 percent to 16,307.16, the S&P 500 tumbled 120.93 points or 2.2 percent to 5,275.70 and the Dow slumped 699.57 points or 1.7 percent to 39,669.39.
The sell-off on Wall Street came amid a steep drop by shares of Nvidia (NASDAQ:NVDA), with the AI darling plunging 6.9 percent on the day.
The slump by Nvidia came after the company said its first quarter results are expected to include up to approximately $5.5 billion of charges associated with its H20 integrated circuits.
Nvidia noted in an SEC filing that the U.S. government now requires a license for the export of the graphics processing units to China and other countries.
Dutch chipmaker ASML (NASDAQ:ASML) also tumbled by 7.1 percent after warning of increased uncertainty around its outlook for 2025 and 2026 due to U.S. tariffs.
“While investors may have been hoping for a change, once again markets have been buffeted by ‘Storm Donald’ as the US president’s trade policy continues to exert pressure on global companies,” says AJ Bell head of financial analysis Danni Hewson.
Stocks saw further downside in afternoon trading following remarks by Federal Reserve Chair Jerome Powell even though his comments largely mirrored those he delivered earlier this month.
Powell highlighted the uncertainty surrounding Trump’s tariffs but reiterated his belief that the Fed is well positioned to wait for greater clarity before considering any adjustments to its policy stance.
Meanwhile, traders largely shrugged off a slew of U.S. economic data, including a Commerce Department report showing a sharp increase by retail sales in the month of March.
The Commerce Department said retail sales shot up by 1.4 percent in March after inching up by 0.2 percent in February. Economists had expected retail sales to jump by 1.3 percent.
The surge by retail sales partly reflected a significant rebound by sales by motor vehicles and parts dealers, which soared by 5.3 percent in March after tumbling by 1.6 percent in February.
Excluding the sharp increase in auto sales, retail sales rose by 0.5 percent in March after climbing by 0.7 percent in February. Ex-auto sales were expected to rise by 0.3 percent.
A separate report released by the Federal Reserve showing industrial production decreased by slightly more than expected in March due to a steep drop by utilities output.
The Fed said industrial production fell by 0.3 percent in March after climbing by an upwardly revised 0.8 percent in February.
Economists had expected industrial production to dip by 0.2 percent compared to the 0.7 percent increase originally reported for the previous month.
Semiconductor stocks saw substantial weakness amid the slumps by Nvidia and ASML, resulting in a 4.1 percent nosedive by the Philadelphia Semiconductor Index.
Considerable weakness also emerged among software stocks, as reflected by the 3.1 percent plunge by the Dow Jones U.S. Software Index.
Brokerage stocks also showed a significant move to the downside, dragging the NYSE Arca Broker/Dealer Index down by 2.3 percent.
Transportation, networking and retail stocks also saw notable weakness, while gold stocks bucked the downtrend as the price of the precious metal soared to new record highs.
Dow Jones, S&P, Nasdaq, Futures Pointing To Initial Rebound On Wall Street
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