US stock futures stabilized on Thursday after a sharp tech-driven selloff the prior day. Rising trade tensions and cautious remarks from Federal Reserve Chair Jerome Powell unsettled investors, contributing to market volatility.
- On Wednesday, the Dow dropped 1.73%.
- The selloff was partly attributed to concerns regarding new US export restrictions on AI chips destined for China.
- Chair Powell warned that escalating tariffs could fuel inflation and dampen growth.
- Markets were unsettled by Powell’s lack of clarity on the path of interest rates.
The decline indicates that broader economic concerns and geopolitical tensions are weighing on market sentiment. Specifically, policy decisions and trade relations appear to exert significant influence, potentially leading to further instability. Investors should carefully monitor these factors and consider their potential impact on overall market performance.