In morning trading on Thursday, U.S. stock futures exhibited a downward trend following a mixed session on Tuesday, where the Nasdaq 100 was the only major index to close positively. Investor attention is sharply focused on significant events looming this week that could influence market directions, including a U.S. Supreme Court ruling on the legality of tariffs enacted under the Trump administration and forthcoming employment reports.
The Supreme Court has scheduled an Opinion Day on Friday, January 9, following a recess, where it may announce its decision on the challenges against tariffs imposed on several countries. This legal development injects a note of uncertainty into the market as its implications could affect trade dynamics and corporate costs.
Simultaneously, the market eagerly anticipates the release of December's jobs report on Friday as well, which will provide fresh insights into labor market health and economic momentum. Investors weigh this information heavily to gauge the potential trajectory of monetary policy and economic growth.
In the fixed income space, the 10-year U.S. Treasury yield hovered at 4.15%, while the two-year yield settled around 3.47%. Additionally, analysis from the CME Group’s FedWatch tool indicates an 88.4% probability that the Federal Reserve will maintain interest rates unchanged in its upcoming January meeting, reflecting market expectations for monetary policy stability.
| Index | Change |
|---|---|
| Dow Jones | -0.29% |
| S&P 500 | -0.23% |
| Nasdaq 100 | -0.30% |
| Russell 2000 | -0.45% |
Exchange-traded funds tracking leading indices reflected the futures downturn. The SPDR S&P 500 ETF Trust (NYSE: SPY) declined 0.20% to $688.19, while the Invesco QQQ Trust (NASDAQ: QQQ), representative of the Nasdaq 100, slipped 0.29% to $622.35 in early trade, as reported by market data sources.
Stocks to Watch
AZZ Inc. (NYSE: AZZ) saw its shares rise 2.8% in premarket activity after reporting robust third-quarter earnings, signaling operational strength. Market analysis through Benzinga’s Edge Stock Rankings notes that AZZ posts a consistent price trend across short, medium, and long terms, supported by a solid quality metric.
Immuneering Corp. (NASDAQ: IMRX) experienced a sharp decline of 22.93%. The downturn followed the release of updated safety and overall survival data from its ongoing Phase 2a clinical trial combining atebimetinib with a modified chemotherapy regimen for first-line treatment of pancreatic cancer. Although the drug has maintained a favorable medium and long-term price trend, short-term momentum appears weak, reflecting investor uncertainty around the trial outcomes.
Northrop Grumman Corp. (NYSE: NOC) shares surged 6.84%, buoyed by increased market optimism in the defense sector. This movement followed a statement from former President Trump proposing an elevation of the 2027 military budget from $1 trillion to $1.5 trillion. Northrop Grumman's stock shows a strong price trajectory across all term measures but carries a poor value ranking according to Benzinga's evaluation.
Phathom Pharmaceuticals Inc. (NASDAQ: PHAT) dropped 14.22% on news of a planned $130 million public offering consisting of common stock and pre-funded warrants. Notwithstanding this setback, performance metrics indicate PHAT sustains a stronger price trend across all durations.
Constellation Brands Inc. (NYSE: STZ) posted a gain of 2.32% post-earnings after surpassing third-quarter expectations. The company holds a stable price trend in the short and medium terms but experienced a weaker long-term trend, alongside a moderate quality ranking.
Market Sector Performance and Analyst Observations
On Wednesday, material, utility, and industrial sectors led declines, while healthcare and communication services indices posted gains, indicating sector rotation amid volatility.
| Index | Performance | Value |
|---|---|---|
| Nasdaq Composite | +0.16% | 23,584.28 |
| S&P 500 | -0.34% | 6,920.93 |
| Dow Jones | -0.94% | 48,996.08 |
| Russell 2000 | -0.29% | 2,575.42 |
Prominent economist Paul Krugman has articulated concerns about the administration’s economic policies, describing them as detached from realistic fiscal constraints. He warns that market valuations might be achieving unrealistically optimistic levels by integrating expected revenues from initiatives considered speculative. Specifically, he criticizes the approach to the Venezuelan situation, outlining it as an illustration of policy disconnects that could jeopardize economic stability.
Krugman highlights a risk that the hoped-for financial windfalls will fail to materialize, potentially leaving the populace to bear the resulting costs. He refers to the administration’s trajectory as moving from aggressive revenue expectations to effectively subsidizing the oil industry, revealing unrealistic premises behind economic planning. This feedback suggests an environment where untethered market enthusiasm may elevate risk levels and volatility.
Economic Indicators and Commodities Update
Investors are expected to focus on key data releases, including initial jobless claims for the week ending January 3, trade deficit figures for October, third-quarter productivity data, and November consumer credit information—all slated for announcement by 3:00 p.m. Eastern Time Thursday.
Commodity markets show mixed activity. Crude oil futures advanced by 0.84%, trading near $56.44 per barrel in early New York trading, while gold prices fell 0.58% to approximately $4,430.60 per ounce, moving away from its recorded high of $4,550.11 per ounce. The U.S. Dollar Index edged up by 0.12%, closing near 98.7980.
Cryptocurrency markets also experienced declines, with Bitcoin prices slipping 1.85% to approximately $89,968.89 per token.
Global Markets Snapshot
The Asian stock markets closed mixed. Indices in South Korea (Kospi) and Australia (ASX 200) finished higher. Conversely, China’s CSI 300, Japan’s Nikkei 225, Hong Kong’s Hang Seng, and India’s Nifty 50 indices traded lower, reflecting varied investor sentiment across the region. European equities opened on a mixed note as well.