U.S. equity futures were signaling a softer start to Thursday’s session, with investors bracing for early declines after two days of uneven trading.
Much of the pressure stems from Disney (NYSE:DIS), whose shares are sliding 6.0% in premarket action. The entertainment group delivered better-than-expected fiscal fourth-quarter profits, but revenue fell short of forecasts, weighing on sentiment across the broader market.
Some of the downside may be tempered by political developments in Washington. President Donald Trump signed a stopgap funding bill late Wednesday, formally ending the longest federal government shutdown on record. The measure extends funding for most federal agencies through January 30, enabling the return of key U.S. economic data releases that investors have been waiting for.
However, uncertainty remains. White House press secretary Karoline Leavitt warned reporters on Wednesday that the October employment and inflation readings are “likely never being released” due to the prolonged shutdown, leaving a gap in the economic picture heading into year-end.
The indices themselves have been moving in different directions this week. On Wednesday, the Dow powered to another record close, boosted by strong moves in UnitedHealth (NYSE:UNH), Goldman Sachs (NYSE:GS) and Cisco Systems (NASDAQ:CSCO). The Nasdaq, by contrast, dipped again as technology names continued to struggle with valuation concerns.
The Nasdaq slipped 61.84 points, or 0.3%, to finish at 23,406.46. The S&P 500 edged up 4.31 points, or 0.1%, to 6,850.92, while the Dow advanced 326.86 points, or 0.7%, ending at 48,254.82.
One notable bright spot in tech was Advanced Micro Devices (AMD). Shares jumped 9.0% after CEO Lisa Su forecast that the company’s annual revenue growth could average more than 35% over the next three to five years. She also reiterated that AMD could achieve “double-digit” market share in data-center AI chips, a segment currently dominated by Nvidia (NASDAQ:NVDA).
Meanwhile, lawmakers in the House of Representatives were preparing Wednesday to vote on the funding bill to bring the shutdown to a definitive close — a move that helped keep volatility in check.
Sector performance was mixed. Gold miners rallied sharply as bullion prices surged, lifting the NYSE Arca Gold Bugs Index by 3.7%. Airline stocks also gained momentum, with the NYSE Arca Airline Index up 2.6%.
Steelmakers, drug manufacturers, and semiconductor stocks posted solid advances, while energy shares slumped alongside a steep decline in crude oil prices.
Leave a Reply