US stock futures saw little change on Thursday following a two-day rally across major averages. This rally was initially driven by easing US-China trade tensions and reduced concerns regarding the Federal Reserve’s independence. The Dow Jones Industrial Average specifically experienced a notable increase during Wednesday’s regular session but gains were later limited due to conflicting statements regarding tariff reductions.
- The Dow climbed 1.07% in Wednesday’s regular session.
- Markets gained ground after President Trump suggested tariffs on Chinese goods may not remain at the elevated 145% level.
- Treasury Secretary Bessent clarified that Trump had not proposed a unilateral tariff cut and that trade talks with China had yet to begin.
The Dow Jones’ performance is heavily influenced by ongoing trade negotiations and perceptions of Federal Reserve independence. While initial optimism surrounding potential tariff reductions propelled gains, subsequent clarification suggesting no immediate tariff cuts dampened investor enthusiasm. This highlights the market’s sensitivity to policy announcements and the potential for volatility based on evolving trade dynamics.