New York City, New York – Stock futures saw a decline after two consecutive days of gains for the major averages. S&P 500 futures were down by 0.5%, while Nasdaq-100 futures traded 0.7% lower, and Dow Jones Industrial Average futures lost 0.6%. The previous day saw the major averages making significant gains, with the Dow up by over 1,100 points at one point.

The market seemed to respond positively to the news of potential easing trade tensions between the U.S. and China. President Donald Trump indicated a willingness to approach trade talks with Beijing in a less confrontational manner, while Treasury Secretary Scott Bessent mentioned the possibility of a significant trade deal with China. These developments may have contributed to the market’s positive performance.

Gaurav Mallik, the chief investment officer of Pallas Capital Advisors, noted that while the administration’s softer stance on tariffs is encouraging, the market is still in a correction phase. Trump’s statement about not intending to fire Federal Reserve Chairman Jerome Powell also boosted market sentiment, especially amid growing tensions between the two.

Investors are now awaiting quarterly earnings reports from companies such as Alphabet, Intel, and PepsiCo. Additionally, economic data on durable goods orders and weekly jobless claims are scheduled to be released, providing further insight into the state of the economy. Overall, the market is on track for weekly gains, with the Nasdaq up 2.6%, the S&P 500 up nearly 1.8%, and the Dow up by 1.2%.

In terms of individual stock performance, International Business Machines (IBM) saw a significant drop of over 7% despite posting better-than-expected earnings and revenue for the first quarter. Similarly, Southwest Airlines lost 4% after announcing plans to reduce its schedule for the second half of the year and withdrawing its earnings guidance for 2025 and 2026. These developments underscore the volatility and challenges present in the current market environment.