Thursday brought more good vibes to Wall Street, with U.S. stock futures climbing in early trading as investors digested Wednesday's solid rally and fresh corporate developments. The optimism stems largely from an unexpected de-escalation in trade tensions, though plenty of individual stock stories are grabbing attention too.
Wednesday's session saw major indices surge more than 1% after President Donald Trump made a sharp reversal on his latest tariff threats. He announced that planned tariffs targeting European Union countries are off the table following what he characterized as a "very productive" meeting with NATO Secretary General Mark Rutte. Markets love nothing more than the removal of uncertainty, and the tariff pullback delivered exactly that.
On the bond front, the 10-year Treasury was yielding 4.24%, while the two-year sat at 3.59%. According to the CME Group's FedWatch tool, markets are pricing in a 95% likelihood that the Federal Reserve will leave interest rates unchanged when it meets in January. Translation: no one expects rate drama anytime soon.
Wednesday's performance across major indices looked like this: the Dow Jones climbed 0.41%, the S&P 500 gained 0.65%, the Nasdaq 100 advanced 0.93%, and the Russell 2000 picked up 0.62%. Not a bad day by any measure.
The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, continued their upward momentum in Thursday's premarket session. The SPY rose 0.64% to $689.76, while the QQQ jumped 0.90% to $621.80.
Companies Making Moves
Intel Eyes Earnings
Intel Corp. (INTC) was trading 1.60% higher in premarket action as investors positioned ahead of quarterly results due after the closing bell. Analysts are projecting earnings of 8 cents per share on revenue of $13.38 billion. The chipmaker has been working to regain its competitive footing in an industry that's moved rapidly toward AI-focused processors.
According to market data, INTC maintains a stronger price trend across short, medium, and long timeframes with a moderate value ranking. The earnings report will likely provide crucial insights into whether Intel's turnaround efforts are gaining traction.
Microsoft Races Into Formula 1
Microsoft Corp. (MSFT) rose 1.06% after announcing a multiyear partnership with the Mercedes-AMG PETRONAS F1 Team. The deal will integrate Microsoft's cloud and AI technologies throughout the racing team's operations, from the factory floor to trackside during races. It's the kind of high-profile partnership that demonstrates how AI is becoming embedded in unexpected places.
The stock maintains a weak price trend over various timeframes but scores well on quality metrics. Microsoft continues to be a dominant player in the cloud computing and AI space, even if recent price action hasn't reflected that strength.
Moderna's Cancer Breakthrough
Moderna Inc. (MRNA) jumped 5.64% after delivering an update on a cancer therapy study that got investors excited. The trial, conducted with Merck & Co. Inc. (MRK), showed that adding Moderna's intismeran autogene to KEYTRUDA significantly reduced the risk of recurrence or death in melanoma patients. This is huge news for Moderna, which has been working to diversify beyond COVID-19 vaccines.
The biotech maintains a stronger price trend across short, medium, and long-term horizons according to market analysis. Positive cancer trial data could open up an entirely new revenue stream for the company.
The Metals Company Goes Deep
The Metals Company Inc. (TMC) gained 5.51% after welcoming a new rule from the National Oceanic and Atmospheric Administration that modernizes regulations governing deep-seabed mining permits. For a company focused on extracting minerals from the ocean floor, regulatory clarity is critical.
TMC maintains a stronger price trend over short, medium, and long terms. The regulatory development could accelerate the company's timeline for commercial operations.
Micron Addresses Chip Shortage
Micron Technology Inc. (MU) popped 2.73% after CEO Sanjay Mehrotra highlighted the current memory chip shortage, attributing it to surging demand for artificial intelligence applications across multiple sectors. When demand outstrips supply in the semiconductor world, it typically means pricing power for manufacturers.
MU maintains a stronger price trend over various timeframes with a solid quality ranking. The memory chip shortage narrative plays directly into Micron's business model, suggesting potential pricing tailwinds ahead.
What Happened Wednesday
Energy, materials, and healthcare stocks led the charge on Wednesday, with all eleven sectors on the S&P 500 closing in positive territory. It's the kind of broad-based rally that suggests genuine optimism rather than narrow leadership.
Here's how the major indices closed: the Dow Jones rose 1.21% to 49,077.23, the S&P 500 climbed 1.16% to 6,875.62, the Nasdaq Composite advanced 1.18% to 23,224.82, and the Russell 2000 surged 2.00% to 2,698.17. Small caps had a particularly strong showing, which often indicates risk-on sentiment.
What the Analysts Are Saying
BlackRock is maintaining a "pro-risk" investment stance for early 2026, driven by the transformative potential of artificial intelligence and supportive macroeconomic conditions. They expect the Federal Reserve to continue cutting interest rates, helped along by a softening labor market and declining inflation. Specifically, they're overweight on U.S. equities, noting that "strong corporate earnings... are supported by a favorable macro backdrop."
But it's not all sunshine and optimism. BlackRock tempers their bullish view with concerns about fiscal sustainability and institutional integrity. They warn that "renewed concerns over Fed independence... may challenge that view." Political risks remain very real, particularly as debates over fiscal policy and central bank autonomy continue.
Despite these risks, BlackRock argues that financial realities will ultimately constrain policy extremes. They point out, "We think immutable economic laws are still at play... that any rapid rise in long-term yields would quickly impact debt sustainability." In other words, there are limits to how crazy policy can get before markets impose discipline.
Based on this outlook, they prefer equities over government bonds and maintain an underweight position on long-term U.S. Treasuries due to the "risk of holding long-term U.S. bonds... due to worries over fiscal sustainability."
Economic Data on Deck
Investors have several important economic releases to watch on Thursday. Initial jobless claims data for the week ending January 17 will be released at 8:30 a.m. ET, along with the first revision of third-quarter GDP. At 10:00 a.m. ET, November's delayed report for personal income, spending, and PCE data will hit the wires. The PCE data is particularly important as it's the Fed's preferred inflation gauge.
Markets Around the World
Crude oil futures were trading lower by 0.92% in early New York trading, hovering around $60.06 per barrel. That's a fairly subdued price level considering all the geopolitical developments happening globally.
Gold fell 0.32% to trade around $4,815.26 per ounce, backing off from its recent record high of $4,888.22 per ounce. The U.S. Dollar Index was essentially flat, down just 0.02% at the 98.7420 level.
In the cryptocurrency world, Bitcoin (BTC) was trading 0.81% higher at $90,024.43 per coin, continuing its recent stabilization after earlier volatility.
Asian markets closed higher on Thursday across the board. China's CSI 300, Hong Kong's Hang Seng, South Korea's Kospi, Japan's Nikkei 225, India's Nifty 50, and Australia's ASX 200 all posted gains. European markets were mostly higher in early trading, following the positive momentum from Asia and Wednesday's U.S. session.
The global picture suggests investors are feeling reasonably confident about the near-term outlook, particularly with trade tensions cooling and corporate earnings season underway. Whether this optimism holds will depend on the economic data, earnings results, and inevitable policy announcements that keep markets on their toes.
