Wall Street experienced a decline on Thursday as US stock futures moved lower, following a volatile trading session that ended multi-day rallies for major averages. Futures tied to the Dow Jones Industrial Average and the S&P 500 both decreased by 0.2%, while futures linked to the Nasdaq 100 dropped 0.3%, retracing slightly deeper losses from earlier in the morning.
On Wednesday, the S&P 500 and the Dow closed lower despite hitting new intraday highs earlier in the session. In contrast, the Nasdaq Composite outperformed, finishing modestly higher. Despite persistent geopolitical tensions, the markets have remained mostly resilient, with investors cautiously monitoring escalating tensions.
One of the highlights of the week is an upcoming Supreme Court decision on the legality of tariffs imposed under the Trump administration. Friday is set to be a significant day for economic insight as investors eagerly await the December jobs report, a key data release. The ongoing CES 2026 has been pivotal for tech stocks, with AI taking center stage in discussions at the event.
Big Oil companies like Chevron, ConocoPhillips, and Exxon Mobil saw minor gains in premarket trading on Thursday. Discussions between US oil companies and the Trump administration regarding investments in Venezuela have been ongoing, with concerns over the need for stronger guarantees before committing capital to the country's energy sector.
There are speculations around a potential copper shortage driven by the increasing demand from AI and defense spending. According to S&P Global, global demand for copper could skyrocket by 50% by 2040. The surge in demand is expected from various sectors, including electric vehicles, renewable power, batteries, and grid expansion, in addition to emerging applications in AI infrastructure and humanoid robots.
Alphabet closed Wednesday surpassing Apple in market value, marking the first time since 2019 that Google's parent company has been valued higher than the tech giant. This shift underscores the contrasting positions of the two companies in the AI landscape, with Alphabet experiencing significant growth driven by its AI-focused strategies.
The day saw a mixed performance across the U.S. stock market, with some sectors experiencing sharper declines. Homebuilders and investment companies were particularly affected by comments made by President Trump on social media. Meanwhile, in the oil market, prices fell following announcements related to Venezuela's oil supply to the US.
The bond market also witnessed fluctuations in Treasury yields due to mixed reports on the US economy. Business executives are reportedly feeling inflation pressures amidst economic uncertainty, although recent reports suggest signs of improvement. The Federal Reserve continues to monitor the job market and inflation levels closely to maintain economic stability.
Overall, despite the day's fluctuations and uncertainties, investors are cautiously optimistic about the economic outlook. Wall Street remains watchful of key developments, including the Supreme Court decision on tariffs, the job market report, and ongoing discussions in the energy sector. The evolving landscape of AI, copper demand, and market dynamics adds layers of complexity to the current investment climate.
