- S&P 500, Nasdaq 100, and Dow futures decline amid pre-market weakness.
- Investors brace for key GDP and inflation reports, tech earnings uncertainty.
- Trade policy concerns and disappointing guidance from SMCI, Starbucks weigh on sentiment.
Market Pullback After Rally
U.S. stock futures retreated early Thursday, with S&P 500 E-Minis down 0.85%, Nasdaq 100 E-Minis sliding 1.24%, and Dow E-Minis falling 0.37%. The dip follows six straight sessions of gains for major indexes, signaling potential profit-taking ahead of high-stakes economic data.
"The market's taking a breather after running hard," said one trader who asked not to be named while discussing client positions. "Between GDP, PCE, and big tech earnings, nobody wants to be caught leaning the wrong way."
Earnings Jitters and Macro Watch
Super Micro Computer (SMCI) plunged 17% in pre-market trading after issuing weaker-than-expected guidance, raising questions about the AI sector's momentum. Starbucks (SBUX) tumbled over 8% following an earnings miss, dragging consumer discretionary stocks lower.
The selloff comes as traders await Thursday's Q1 GDP report and Friday's PCE inflation reading—the Fed's preferred price gauge. "These numbers could either confirm the soft landing narrative or revive stagflation fears," noted a portfolio manager at a major hedge fund.
Trade Policy Overhang
Ongoing uncertainty about potential Trump administration tariffs continues to pressure markets, particularly tech and multinational firms. Some traders reported lightening positions in semiconductor stocks amid rumors of new trade restrictions.
While construction and healthcare stocks showed relative strength—with Caterpillar and GE HealthCare among bright spots—the overall tone remained cautious. Volatility indicators ticked higher as the VIX futures rose 9% in early trading.
Correction: An earlier version misstated the timing of the PCE release. It will be published Friday, not Thursday.