Stock futures showed little movement on Thursday night as investors continue to navigate a turbulent global trade environment. Futures linked to the Dow Jones Industrial Average experienced a slight pullback of 67 points, representing a decline of 0.1%. Similarly, S&P 500 futures fell by 0.2%, while Nasdaq-100 futures dipped by 0.3%.
In extended trading, investors were focused on the latest quarterly results from various companies. Notably, shares of the clothing retailer Gap saw a significant decline of more than 16% following a weaker-than-expected outlook for the second quarter. In contrast, Ulta Beauty, a cosmetics retailer, enjoyed an increase of approximately 8% due to strong performance in its first-quarter results. Additionally, Dell Technologies saw its stock rise by 5% following impressive first-quarter revenue figures.
The ongoing uncertainty surrounding trade news capped potential gains for the market on Thursday. Major averages closed below their intraday highs as investors digested the latest developments. A significant update came from the Court of International Trade, which on Wednesday night halted most of President Donald Trump's tariffs. However, a stay was granted on Thursday afternoon, allowing these duties to remain in effect until next week.
This news adds another layer of uncertainty to a market already grappling with macroeconomic concerns related to tariffs and the potential for a recession due to shifts in U.S. trade policy. Despite these challenges, stocks are poised to end May on a strong note. The S&P 500 has gained over 6% this month, while the Nasdaq Composite has surged 10%. The Dow, which includes 30 major stocks, has seen an increase of about 4% during the same period.
As we approach summer, Ed Clissold, the chief U.S. strategist at Ned Davis Research, expressed optimism about the market's momentum. Speaking on CNBC's Closing Bell, he noted, "I think as we head into summer that momentum can continue, but then that's where the hard data that may catch up to the weaker, soft data, could come into play." He also highlighted that there remains strong momentum as we transition from the second quarter into the third quarter.
For the week, the S&P 500 has advanced approximately 2%, with the Dow increasing by 1.4%. The tech-heavy Nasdaq has outperformed, advancing by 2.3%. Investors will be closely watching the upcoming reading of the Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) index, which is set to be released on Friday.
