TLDR
- U.S. stock futures pointing down as the U.S.-China trade deal rally loses momentum
- Bitcoin price falling, currently at $101,927, down 1.3% in early trading
- Oil prices tumble nearly 4% after Trump hints at potential Iran deal
- Investors awaiting April retail sales data and wholesale inflation (PPI) numbers
- Fed Chair Powell scheduled to speak as markets watch for interest rate signals
U.S. stock futures retreated Thursday morning as the market momentum from the recent U.S.-China trade deal faded, with investors turning their attention to upcoming economic data and Federal Reserve commentary. Bitcoin also declined while oil prices dropped sharply following President Trump’s comments about a possible Iran deal.
Futures tracking the Dow Jones Industrial Average fell 207 points (0.5%), S&P 500 futures slipped 0.3%, and Nasdaq 100 futures were down 0.7%. The tech-heavy index’s six-day winning streak appeared at risk after a strong run.
The market pullback comes after a relief rally sparked by Washington and Beijing’s agreement to scale back tariffs for 90 days. Without fresh catalysts, traders have begun taking profits.
Oil Markets React to Trump’s Middle East Tour
Oil prices tumbled nearly 4% after President Trump indicated the U.S. was “close to maybe doing a deal” with Iran regarding its nuclear program. Brent crude futures dropped below $64 per barrel while West Texas Intermediate crude fell under $61.
The President’s Middle East tour did yield some positive developments. Saudi Arabia’s national oil company Aramco signed agreements with U.S. companies potentially worth $90 billion.
Crypto and Treasury Markets
Bitcoin, the world’s largest cryptocurrency by market capitalization, fell 1.3% to $101,927 in early trading. The decline comes amid a broader pullback in risk assets.
Treasury yields also slipped, with the benchmark 10-year U.S. Treasury note yield down 2 basis points to 4.520%. The U.S. Dollar Index, which measures the greenback against a basket of six other currencies, was down 0.2%.
Market participants are now looking toward several key data points due Thursday. These include retail sales figures, producer price index data, and housing market indicators.
The retail sales report will offer insights into consumer spending patterns, while the PPI will provide another measure of inflation pressures. Both reports could influence the Federal Reserve’s approach to interest rates.
Fed Chair Jerome Powell is scheduled to speak at a conference in Washington. Investors will closely monitor his remarks for any hints about monetary policy amid the changing trade landscape.
On the geopolitical front, Russia and Ukraine are set to begin peace talks in Istanbul. However, the Kremlin has stated that President Vladimir Putin will not attend these discussions.
In the corporate world, Thursday brings earnings reports from major companies including Walmart, Alibaba, Applied Materials, and Cava. These results will offer a window into how different sectors are handling the current economic environment.
Technology firms continue to highlight artificial intelligence as a growth driver. Cisco raised its annual forecast based on AI-driven demand, sending its shares higher in premarket trading.
CoreWeave also issued a positive AI-related outlook, though its stock fell after capital expenditures exceeded expectations.
President Trump mentioned that India has offered to “literally charge us no tariffs” on U.S. goods as part of trade negotiations. This development comes as the administration continues to reshape America’s trade relationships.
The market is still processing the impact of Trump’s tariff policies on inflation and economic growth. The Consumer Price Index released earlier this week showed inflation pressures easing as the new tariffs took effect.
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