Looking ahead at U.S. and global markets with insights from Mike Dolan:
As market focus shifts to fourth-quarter performance, recent releases from Microsoft and Meta drew varying reactions. Meta saw a 4% rise post-earnings, while Microsoft faced a 4% drop amid concerns over its cloud business. The upcoming financial reports from Apple and Intel are eagerly anticipated.
Despite the Fed's decision to maintain rates unchanged, index futures are currently up to half a percent, dismissing any immediate rate adjustments under the Fed's "well-positioned" stance. The European Central Bank is expected to announce a rate cut, aligning with global trends of decreasing interest rates.
Analysts are adjusting GDP growth forecasts following a record-high U.S. goods trade deficit in December, with signs pointing to a slight economic slowdown at the end of last year. While the U.S. economy continues to expand, recent disappointing GDP figures from Germany and France highlight ongoing economic uncertainties in Europe.
Market sentiments remain cautious amidst trade tensions, with volatility expected as Trump administration talks of potential tariffs loom. European stocks edge up despite mixed corporate earnings, with particular attention on ongoing trade negotiations and potential tariff implications.
Key events ahead for Thursday include the European Central Bank policy decision, U.S. Q4 GDP estimate, corporate earnings from a range of companies, and economic indicators like jobless claims and pending home sales.