Dow futures declined over 160 points in early trade on Thursday, as investors digested a mixed bag of Big Tech earnings, the latest Federal Reserve policy decision, and the outcome of the Trump-Xi summit.
The Dow Jones Industrial Average futures were down about 0.2%, reflecting a pause in the recent market rally.
Fed Chair Jerome Powell’s comments that a December rate cut was “not a foregone conclusion” contributed to the cautious sentiment.
The meeting between Trump and Xi Jinping resulted in a modest reduction in US tariffs on Chinese goods, but did not deliver a major breakthrough, while earnings from tech giants like Meta and Microsoft disappointed, further weighing on sentiment.
5 things to know before Wall Street opens
1. The meeting between Donald Trump and Xi Jinping wrapped up with a one-year trade agreement designed to cool the ongoing tensions between Washington and Beijing.
Under the deal, China will resume imports of American soybeans and lift its restrictions on rare earth exports, materials vital to the tech industry.
In return, the US agreed to cut tariffs on Chinese goods by 10%, trimming them from 57% to 47%.
Both sides also pledged to work more closely on curbing the flow of fentanyl and to continue discussions around TikTok’s future.
Trump hailed the talks as “amazing,” giving the meeting “a 12 out of 10” and confirming plans for reciprocal visits in 2026.
2. Federal Reserve Chair Jerome Powell struck a cautiously upbeat tone on Wednesday, after the Fed announced a 25-basis-point rate cut.
He said the US economy is still growing at a moderate pace, even though inflation hasn’t completely cooled off yet.
Powell also pointed out that job market risks have started to creep up, so the Fed plans to keep a close eye on new data before deciding what to do next.
He made it clear, though, that another rate cut in December isn’t a sure thing, calling it “not a foregone conclusion.”
Alongside the rate move, the Fed said it will stop shrinking its balance sheet starting December 1, signaling a more measured approach going forward.
3. The pre-market trading is witnessing some major moves on Thursday, as Alphabet shares jumped about 6% on strong Q3 results, Meta and Microsoft shares plunged about 8% and 2%.
Alphabet reported a landmark quarter with revenue soaring 16% year-over-year to $102.3 billion, driven by double-digit growth in Google Search, YouTube ads, subscriptions, and Cloud services.
In contrast, Meta’s earnings were hit by a $16 billion one-time tax charge, coupled with rising AI-related costs, despite revenue beating estimates.
Microsoft disappointed with Azure sales slightly below expectations, dampening investor enthusiasm despite solid overall cloud growth.
4. US-listed rare earth miners jumped on the news that China will delay its new export controls following the Trump–Xi summit.
Shares of USA Rare Earth climbed about 4.5%, while MP Materials gained 3.3%, as investors welcomed the easing of trade tensions.
The one-year postponement gives US producers some breathing room, especially as they work to strengthen domestic supply chains for critical minerals.
MP Materials, which has recently ramped up production and continues to benefit from US government support, remains a central player in the effort to reduce reliance on China.
5. The global markets experienced mixed trading on Thursday, with gains led by the technology and energy sectors.
Asian shares rose modestly on optimism over US-China trade developments following the Trump-Xi summit, and investors also watched for easing geopolitical tensions.
Conversely, European markets showed cautious sentiment, weighed down by ongoing economic concerns and corporate earnings.
Major indices like the FTSE and DAX traded sideways, with financial and industrial sectors facing slight pressure.
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