US stock futures dipped slightly on Wednesday night, indicating ongoing caution following two consecutive days of declines on Wall Street, marking the first instance of back to back losses for all three major indexes this year.
Futures for the Dow Jones Industrial Average (YM=F), those linked to the S&P 500 (ES=F), and futures for the Nasdaq 100 (NQ=F) all remained below the starting point.
On Wednesday, technology stocks were the primary drivers behind the market's decline, pulling major indexes into negative territory.
The S&P 500 (^GSPC) finished down by 0.5%, while the Nasdaq Composite (^IXIC) fell by 1%. All three major indices have now experienced consecutive losses.
Shares of AI favorite Nvidia (NVDA) declined in value even after the U.S. officially approved its chip exports to China, as news surfaced of a 25% tariff on certain semiconductor imports.
This week, tariffs have come under scrutiny as the Supreme Court has delayed its decision on the legality of the framework under which these tariffs were issued on two separate occasions.
Investor sentiment remains heavily influenced by geopolitical events, as officials from the Trump administration met on Wednesday with leaders from Denmark and Greenland while the president continues to advocate for US governance over Greenland.
A Danish representative stated that the discussions did not resolve what he described as a "fundamental disagreement" regarding ownership.
Additionally, markets have been unsettled by Trump's ongoing legal challenges and critiques directed at Federal Reserve Chair Jerome Powell.
Concerns regarding the Fed's independence grew this week after Powell confirmed that the Justice Department has initiated a criminal investigation involving the head of the central bank.
As we approach Thursday, market participants will be paying close attention to new earnings reports from Goldman Sachs (GS), Morgan Stanley (MS), and BlackRock (BLK), in addition to the upcoming weekly jobless claims figures.
Oil prices decreased for the first time in six days after US President Donald Trump indicated he might delay military action against Iran for the time being.
Brent crude (BZ=F) fell as much as 2.9%, trading below $65 a barrel after an increase of roughly 11% over the previous week, while West Texas Intermediate (CL=F) hovered around $60.
Trump mentioned that he had received assurances that Iran would cease its violent actions against protesters, which lowered the chances of an immediate US military response to the protests against the regime of Supreme Leader Ayatollah Ali Khamenei and potential disruptions to Iranian oil production and vital shipping routes.
In other news, data from the US government revealed that crude stockpiles across the country increased by 3.4 million barrels last week, marking the biggest rise since early November.
The growth in inventories, an influx of Venezuelan oil into the US, and a disruption at a major terminal in the Black Sea have all contributed to WTI trading at its largest discount to Brent in 15 months.
