Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 23, 2025.
Brendan McDermid | Reuters
Stock futures slipped Thursday after China said that it had no ongoing trade talks with the U.S., dashing investors’ hopes of an ease in tensions between the two nations.
Futures linked to the S&P 500 were down 0.3%, while Nasdaq-100 futures slid 0.2%. Dow Jones Industrial Average futures lost 219 points, or 0.6%.
The major averages posted strong gains on Wednesday, rising more than 1% each. That said, they finished the day well off their highs. At one point on Wednesday, the Dow was up more than 1,100 points.
Stocks were boosted on hopes that trade tensions between the U.S. and China would ease. Earlier this week, President Donald Trump said he is willing to take a less confrontational approach toward trade talks with Beijing. Further, Treasury Secretary Scott Bessent said Wednesday that the U.S. has the “opportunity for a big deal” on trade. Chinese imports are subject to a U.S. tariff of 145%.
But investors waiting for any signs of tariff negotiation were left disappointed. China said overnight that there were no trade talks taking place with the U.S., with Ministry of Commerce spokesperson He Yadong adding that “all sayings” regarding progress on bilateral talks should be dismissed. The spokesperson also called for the cancelation of “unilateral” tariffs.
“While it’s encouraging to hear a more dovish tone on tariffs from the administration, stocks remain range-bound for the time being, as the ultimate goal for markets is either a reversal of the tariffs or significant trade deals,” said Gaurav Mallik, chief investment officer of Massachusetts-based Pallas Capital Advisors. “It can take a few months for corrections to end, and we still believe that this is a correction given the speed of the declines.”
In addition, Trump said late Tuesday that he has “no intention” of firing Federal Reserve Chairman Jerome Powell, whose term as Fed chair will end in May 2026. This seemed to boost sentiment in the market, particularly as the relationship between Trump and Powell has been growing more tense in recent days. Earlier this week, the president called Powell a “major loser.”
All three of the major averages are on pace for weekly gains, with the Nasdaq up 2.6% and the S&P 500 up nearly 1.8%. The Dow is on pace for a 1.2% advance in the period.
International Business Machines slumped more than 7%. The company posted better-than-anticipated earnings and revenue for the first quarter, but maintained its full-year guidance. Southwest Airlines lost 4% after the company said it plans to cut its schedule in the second half of this year and pulled its guidance for earnings before interest and taxes in 2025 and 2026.
Texas Instruments shares rally on earnings beat
Shares of Texas Instruments popped 8% in the premarket after the semiconductor company posted first-quarter earnings and revenue that exceeded analyst expectations.
The company earned $1.28 per share on revenue of $4.07 billion. Analysts polled by LSEG expected a profit of $1.07 per share on revenue of $3.91 billion. Second-quarter guidance was also above estimates.
TXN pops
— Fred Imbert
ServiceNow shares rally on big earnings beat
Shares of ServiceNow popped more than 8% in the premarket after the software company reported quarterly figures that beat analyst expectations. The company earned $4.04 per share, excluding certain items, on revenue of $3.09 billion. Analysts polled by FactSet expected a profit of $3.83 per share on revenue of $3.08 billion.
NOW rallies
— Fred Imbert
Procter & Gamble sheds 2% after reporting fiscal third-quarter loss
Shares of Procter & Gamble, the parent company behind Tide and Charmin, slipped nearly 2% on Thursday morning after the company posted fiscal third-quarter revenue of $19.78 billion. This was lower than the $20.11 billion analysts polled by LSEG had expected.
PG 5D chart
On the other hand, the company posted a slight earnings beat. Procter & Gamble accompanied the results by also slashing its full-year core earnings per share and revenue forecast.
— Lisa Kailai Han
IBM falls despite earnings beat
IBM shares were down more than 6% after a warning from the legacy tech company overshadowed a stronger-than-expected first-quarter report. CEO Arvind Krishna said that, “in the near term, uncertainty may cause clients to pause and take a wait-and-see approach.”
IBM falls
— Fred Imbert
China says it has no trade talks with U.S., suggests canceling ‘unilateral’ tariffs
On Thursday, China said that there were no ongoing talks with the U.S. on tariffs.
“At present there are absolutely no negotiations on the economy and trade between China and the U.S.,” Ministry of Commerce spokesperson He Yadong told reporters in Mandarin, translated by CNBC. He added that “all sayings” regarding progress on bilateral talks should be dismissed.
“If the U.S. really wants to resolve the problem … it should cancel all the unilateral measures on China,” the spokesperson said.
Hope of easing tensions between the two nations sent stocks higher on Wednesday.
— Evelyn Cheng, Lisa Kailai Han
‘Bear market rallies are the most violent,’ Wolfe Research strategists say
“Bear market rallies are the most violent,” according to Wolfe Research macro strategists Rob Ginsberg and Read Harvey in a note published late Tuesday after Day 1 of the latest market comeback.
Tuesday’s 2.5% gain in the S&P 500 showed internal markers such as breadth and volume that “were extremely strong, but that’s the point of the bear market rally, they make you a believer,” the pair wrote.
Because their analysis of longer-term, weekly and monthly trends “continues to suggest that we are in a bear market,” Ginsberg and Harvey are looking for “a cluster” of signals to shift direction before declaring the bear dead. Those include a turn in the three-month rate of change and for the S&P 500 to climb above short-term resistance levels between 5500 and 5700.
The S&P 500 closed Wednesday at 5,375.86.
— Scott Schnipper
Market hasn’t fully priced in a recession yet, Deutsche Bank says
While uncertainty stemming from President Donald Trump’s new tariffs have certainly fanned recessionary fears in recent weeks, the market hasn’t fully bought into the idea, according to Deutsche Bank.
“It’s clear that investors aren’t fully pricing a recession in just yet,” wrote strategist Henry Allen. “After all, the equity declines have been shallower than recent recessions, as have the widening in credit spreads and the declines in oil prices. So markets clearly don’t see a recession as inevitable, particularly if the tariffs don’t come into force after the latest 90-day extension.”
On the flip side, investors not fully pricing in a recession means that stocks could see “significant downside risks” if an economic downturn does indeed materialize.
— Lisa Kailai Han
Stocks moving after market close include Chipotle, Southwest Airlines
Check out the companies making headlines in after-hours trading.
- Chipotle Mexican Grill — Chipotle missed first-quarter revenue estimates and said same-store sales declined for the first time since 2020, leading the stock to drop 2.1%. Chipotle also lowered the top end of its outlook for full-year same-store sales growth.
- Texas Instruments — Shares of the semiconductor manufacturer popped about 4.2% after market close. Texas Instruments reported first-quarter earnings of $1.28 per share on revenue of $4.07 billion, handily beating analysts’ expectations for earnings of $1.07 per share on revenue of $3.91 billion.
- Southwest Airlines — Southwest Airlines shares dipped 3.1% after the airline on Wednesday said it will reduce its capacity in the second half of 2025, given further signs of weaker domestic bookings this year.
For the full list, read here.
— Pia Singh
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