U.S. stock index futures hovered near unchanged levels early Thursday, suggesting a quiet start to the trading day as investors process a flurry of economic updates, corporate earnings, and ongoing political tension between President Donald Trump and Federal Reserve Chair Jerome Powell.
After Wednesday’s volatile session that ended mostly in the green, market participants appear cautious, hesitant to commit to strong positions amid mixed signals.
Several U.S. economic indicators were released this morning, further contributing to the wait-and-see mood. According to the Commerce Department, retail sales rebounded more strongly than analysts predicted in June. The report showed a 0.6% rise in overall retail sales after a 0.9% dip in May. Consensus forecasts had pointed to a modest 0.1% increase.
Sales excluding autos and parts dealers also outperformed, climbing 0.5% following a 0.2% decrease the previous month. These so-called “core” retail sales were expected to grow by just 0.3%.
Meanwhile, the Labor Department reported a surprising decline in weekly jobless claims. First-time filings dropped by 7,000 to 221,000 for the week ending July 12, beating forecasts of a rise to 235,000. The previous week’s total had been revised to 228,000 from 227,000.
In another release, import prices edged up by only 0.1% in June—less than the 0.3% gain economists were expecting—suggesting muted inflationary pressure on that front.
Wednesday’s session reflected investor indecision, as major indexes traded without clear direction for much of the day. But by the close, gains had materialized, with the Nasdaq ending at a record high.
The Dow added 231.49 points, or 0.5%, to finish at 44,254.78. The S&P 500 advanced by 19.94 points, or 0.3%, to close at 6,263.70, while the Nasdaq climbed 52.69 points, or 0.3%, to settle at 20,730.49.
Markets briefly dipped midday Wednesday after reports surfaced that President Donald Trump had discussed the idea of firing Fed Chair Jerome Powell with Republican lawmakers. However, stocks recovered when Trump clarified: “I’m not planning” to fire Powell, adding, “I think it’s highly unlikely, unless he has to leave for fraud.”
Trump has consistently criticized Powell for not cutting interest rates in line with his wishes.
Additional economic data from the Labor Department showed producer prices were flat in June, contradicting expectations for a 0.2% increase. May’s figure was also revised upward to a 0.3% gain. On an annual basis, producer inflation eased to 2.3% from a revised 2.7% in May—lower than the expected 2.5%.
While the softer PPI figures may alleviate some inflation concerns, markets still expect the Fed to maintain current interest rates until at least September.
Another encouraging sign came from the Federal Reserve’s report on industrial production, which rose more than expected in June, suggesting resilience in the manufacturing sector.
On the corporate front, ASML (NASDAQ:ASML) saw its shares tumble after the chip equipment maker warned of potential stagnation in 2026 growth. Morgan Stanley (NYSE:MS) also slipped, even though its second-quarter results topped analyst expectations on both revenue and profit.
By contrast, Johnson & Johnson (NYSE:JNJ) shares jumped after the company delivered stronger-than-anticipated earnings and lifted its full-year outlook.
The upbeat J&J results helped lift the broader pharmaceutical sector, with the NYSE Arca Pharmaceutical Index climbing 1.6%. Biotech and healthcare stocks also posted solid gains—the NYSE Arca Biotechnology Index rose 1.5%, and the Dow Jones U.S. Health Care Index gained 1.2%.
However, energy names lagged behind. As crude oil prices continued to slide, energy equities retreated, pulling down the Philadelphia Oil Service Index and the NYSE Arca Oil Index by 1.5% and 1.3%, respectively.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
