U.S. stock futures were falling early Thursday after hitting record highs in the previous session. The big question is how much bad news traders can shrug off to keep the bull market–now in its third year–running strong.
The Federal Reserve provided some relief on Wednesday as it released minutes from its last meeting saying that it’s in a good position to bring inflation to heel, but that it’s also prepared to deliver more cuts if price gains or growth weaken. There wasn’t much new in the report–it described the meeting from several weeks ago, and didn’t suggest more interest-rate cuts were imminent–but investors seemed to think a long pause might not be too damaging.
Beyond that, the market was able to absorb the latest comments from President Donald Trump on tariffs–he wants a 25% tax on imports of automobiles, semiconductors, and pharmaceuticals–without much fanfare. Trump’s remarks on the war in Ukraine were also seen as not very relevant to stocks. He said Ukraine’s leader Volodymyr Zelensky is a dictator and blamed him for starting the war with Russia, radically changing the U.S.’s stance of the past few years and worrying leaders in Europe.
Futures for the Dow Jones Industrial Average lost 138 points, or 0.3%, before the market opened. Contracts tied to the S&P 500 also fell 0.3%, as did those for the technology-heavy Nasdaq. All three rose Wednesday, with the S&P hitting its second record close in a row.
Earnings from retail giant Walmart could move the market on Thursday. They could give clues to the state of consumer sentiment, a major driver of economic growth.
Bond yields were slightly lower. The 10-year Treasury yield was at 4.527%, compared with 4.564% yesterday. The two-year yield was at 4.268%.
