U.S. equity futures are indicating a modestly weaker start to Friday’s session, as markets appear set to pause following a sharp two-day rebound that erased much of the losses suffered earlier in the week.
After the recent rally, some investors are opting to lock in gains, particularly after the bounce largely offset Tuesday’s steep decline. The advance was fueled by easing concerns around President Donald Trump’s plans for Greenland, after he ruled out the use of military force and softened his tone on potential tariffs against European countries.
That relief may be short-lived, however, as geopolitical uncertainty resurfaced following fresh comments from Trump regarding Iran. Speaking to reporters aboard Air Force One on Thursday, the president said a U.S. “armada” was moving toward the Middle East.
“We’re watching Iran,” Trump said. “You know we have a lot of ships going in that direction just in case. We have a big flotilla going in that direction and we’ll see what happens.”
Trump had previously stepped back from threatening military strikes against Iran amid its crackdown on nationwide protests, but the renewed rhetoric has unsettled market sentiment.
Adding to the early pressure, Intel (INTC) shares slid nearly 13% in premarket trading. The chipmaker came under heavy selling after posting better-than-expected fourth-quarter earnings while issuing weaker-than-anticipated guidance for the current quarter.
On Thursday, Wall Street extended its rebound, with stocks closing mostly higher and building on Wednesday’s strong gains. The advance helped further neutralize Tuesday’s selloff, pushing the Dow into positive territory for the week.
While the major indices finished below their session highs, gains remained solid across the board. The Dow Jones Industrial Average rose 306.78 points, or 0.6%, to 49,384.01. The Nasdaq Composite advanced 211.20 points, or 0.9%, to 23,436.02, and the S&P 500 climbed 37.73 points, or 0.6%, to end at 6,913.35.
Markets have been supported by diminishing tensions tied to Trump’s Greenland ambitions. On Wednesday, the president publicly ruled out military action and later said he had reached the “framework” of an agreement over the Arctic territory.
Following that “framework” arrangement with NATO Secretary General Mark Rutte, Trump retreated from earlier threats to impose sanctions on European nations opposing his plans.
Some analysts see the recent surge in equities as a revival of the so-called “TACO trade,” shorthand for “Trump Always Chickens Out,” a term used to describe a pattern of market-rattling threats followed by policy reversals.
“There are a lot of similarities with the Liberation Day market wobble in April 2025 and now,” said Russ Mould, investment director at AJ Bell. “In both situations, Trump took an aggressive stance and then backed down after financial markets wobbled.”
He added, “The US president has a keen eye on what happens with bonds and stocks, and the last thing he wants is to be accused of destroying people’s wealth.”
On the economic front, data from the U.S. Labor Department showed a small increase in initial jobless claims for the week ended January 17. Claims edged up to 200,000, rising by 1,000 from the prior week’s revised reading of 199,000.
Economists had expected claims to climb to 205,000 from the previously reported 198,000.
Meanwhile, separate figures from the Commerce Department indicated that consumer prices rose in November broadly in line with economists’ forecasts.
Sector moves were mixed in Thursday’s session. Gold-related stocks surged as bullion prices jumped, with the NYSE Arca Gold Bugs Index gaining 4.4% to a record close. Telecom stocks also performed strongly, as the NYSE Arca North American Telecom Index advanced 2.1% to a new high.
Technology-linked sectors including software, networking and biotechnology supported the Nasdaq’s outperformance, while real estate and housing stocks lagged.
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