S&P 500 futures experienced a decline during overnight trading following the index’s third consecutive day of gains, driven by developments in the trade dispute between the Trump administration and China. A temporary suspension of retaliatory tariffs was agreed upon, influencing market sentiment.
Futures linked to the S&P 500 dropped by 0.2%, while Nasdaq-100 futures decreased approximately 0.1%. Dow Jones Industrial Average futures fell by 168 points, or 0.4%. In after-hours trading, Foot Locker’s shares surged over 60% due to reports that Dick’s Sporting Goods is nearing a deal to acquire the company for around $2.3 billion. Conversely, UnitedHealth shares slid 8% following reports of a Justice Department investigation into the insurer.
Stock market confidence has been bolstered by recent negotiations between U.S. Treasury Secretary Scott Bessent and Chinese officials, which helped prevent an immediate economic downturn and inflation spike. This optimism largely persisted on Wednesday, with the S&P 500 advancing 0.1% and the Nasdaq Composite rising 0.7%. It marked the sixth consecutive winning day for the tech-heavy index, while the 30-stock Dow slipped 0.2%.
Tech giants have shown strong performance this week: Nvidia and Tesla both increased by more than 16%, Meta Platforms gained 11.3%, and Amazon and Alphabet each rose over 8%. The Nasdaq Composite is up 6.8% this week, followed by the S&P 500 at 4.11% and the Dow at 1.9%.
Market sentiment was further supported on Tuesday by data indicating slower consumer inflation growth than anticipated. Excluding food and energy, inflation rose by 0.2% in April, below the consensus estimate of 0.3%. Traders will monitor upcoming economic indicators on Thursday, including the producer price index, retail sales, and industrial production numbers for April, along with weekly jobless claims.
— new from CNBC