US Stocks Rise Amid Big Tech Earnings and Trade Relief
US Stocks Rise Amid Big Tech Earnings and Trade Relief
U.S. stock futures moved higher Thursday morning after President Donald Trump backed away from a proposed round of tariffs targeting European allies. The decision eased investor anxiety that had pressured markets earlier in the week and helped extend Wednesday’s strong rally.
Tech Stocks Lead Market Gains
Futures tied to the Nasdaq 100 rose about 0.9%, reflecting renewed optimism around large-cap technology names. S&P 500 futures gained 0.6%, while Dow Jones Industrial Average futures were up a more modest 0.3%.
The advance follows Trump’s decision to pause a proposed 10% tariff on eight NATO countries, originally expected to take effect in February. The tariff threat had rattled Wall Street amid concerns it could reignite global trade tensions at a fragile moment for the economy.
Tariff Pause Brings Relief, but Geopolitical Risks Remain
While markets welcomed the delay, uncertainty hasn’t fully disappeared. The U.S. and European Union remain divided over Greenland, which Trump has repeatedly expressed interest in acquiring.
Trump said he has outlined a “framework of a future deal” with NATO leadership regarding the Arctic territory. However, Denmark’s prime minister reiterated on Thursday that Greenland’s sovereignty is not negotiable. That ongoing dispute could still influence sentiment if tensions escalate again.
For now, investors appear focused on the immediate relief rather than longer-term geopolitical risks.
Earnings Season Shifts Focus to Big Tech and Industry
Beyond politics, attention is quickly turning to corporate earnings. Intel (INTC) is set to report results after the market closes Thursday, making it one of the first major technology companies to kick off earnings season.
Investors will be closely watching:
- Progress on Intel’s turnaround strategy
- Spending trends related to artificial intelligence
- The impact of a global memory chip shortage
Other notable earnings on the calendar include Procter & Gamble (PG) and GE Aerospace (GE), offering insight into both consumer demand and industrial activity.
Alibaba Jumps on AI Chip IPO Report
In premarket trading, Alibaba (BABA) shares climbed after a Bloomberg report said the company is preparing an IPO for its AI chip unit, T-Head. The move highlights growing global interest in alternative AI chipmakers as demand surges.
The news follows comments from Nvidia (NVDA) CEO Jensen Huang, who recently suggested that AI-related spending could reach “trillions of dollars” over time. That narrative continues to support optimism across the semiconductor sector.
Key Economic Data Ahead: Inflation and Jobs in Focus
Investors are also bracing for several high-impact economic reports. Most notable is the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. The data, delayed by the government shutdown, will cover both October and November.
Additional reports due later include:
- Weekly jobless claims
- Third-quarter GDP updates
Together, these releases could shape expectations around potential interest-rate cuts later this year.
Market Outlook
For now, easing trade tensions and solid momentum in tech stocks are giving markets a boost. Still, investors remain cautious as earnings, inflation data, and geopolitics continue to set the tone for early 2026 trading.
Disclaimer
This article is for informational purposes only and does not constitute financial, investment, or trading advice. Market conditions can change rapidly, and past performance is not indicative of future results. Readers should conduct their own research or consult a licensed financial professional before making investment decisions.
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