Trump's Shocking Tariff Reversal: How Dow and S&P 500 Could Skyrocket—Are You Ready to Profit?

U.S. stock futures climbed on Thursday, buoyed by investors' relief following President Trump's decision to suspend threatened tariffs on European allies amidst his controversial pursuit of Greenland. This move has brought a momentary calm to Wall Street, which had been unsettled earlier in the week.

The tech sector led the upward momentum, with NASDAQ 100 futures (NQ=F) registering a gain of 0.8%. S&P 500 futures (ES=F) rose approximately 0.6%, while the Dow Jones Industrial Average futures (YM=F) increased by 0.3%. This rally follows a sharp uptick in stock prices on Wednesday, indicating a positive shift in market sentiment.

Trump's announcement to pause the 10% tariffs planned for eight NATO member countries in February has alleviated some of the apprehensions surrounding trade tensions. However, investors remain vigilant as the U.S. and EU continue to grapple with conflicting claims over Greenland, an issue that has geopolitical implications.

Trump mentioned that he has established a "framework of a future deal" with NATO's leadership concerning the Arctic island, which the U.S. has expressed interest in purchasing. Nonetheless, Danish Prime Minister Mette Frederiksen reiterated on Thursday that the sovereignty of Greenland is not open for negotiation, reinforcing the complexities of international relations in this matter.

Apart from geopolitical tensions, investors are closely monitoring the upcoming earnings reports from major tech firms, particularly Intel (INTC). The semiconductor giant is set to report its quarterly results after the market closes on Thursday. Analysts are keen to see how Intel responds to challenges such as the increasing demand for artificial intelligence (AI) technologies from companies like Meta (META) and the ongoing global memory shortage, which has pressured the industry.

Other notable companies reporting earnings include Procter & Gamble (PG) and GE Aerospace (GE). These reports could set the tone for broader market trends, as they reflect not only company performance but also consumer sentiment and spending habits.

In addition to earnings, investors await a delayed report from the Federal Reserve on its preferred inflation gauge, the PCE price index. The data for November and October will be crucial in shaping expectations for potential interest rate cuts later this year. Further updates on weekly jobless claims and third-quarter GDP are also due, adding another layer of complexity to the economic landscape.

• 📰 Table of Contents

  1. Alibaba Plans IPO for AI Chipmaking Unit T-Head
  2. Trending Tickers: Moderna, GameStop, and Ubisoft
  3. Goldman Sachs Raises Year-End Gold Forecast
  4. Global Chip Stocks Rally on AI Euphoria
  5. Gold Prices Drop After Trump Cools Greenland Rhetoric

  Alibaba Plans IPO for AI Chipmaking Unit T-Head

  Shares of Alibaba (BABA, 9988.HK) surged in premarket trading following reports that the Chinese tech giant is planning an IPO for its chipmaking subsidiary, T-Head. This development signals Alibaba's commitment to capitalizing on the booming AI sector.

• Trending Tickers: Moderna, GameStop, and Ubisoft

  Moderna (MRNA) stock surged by 5% before the bell after the company reported positive results from its skin cancer vaccine trials. Meanwhile, GameStop (GME) shares climbed 3% as CEO Ryan Cohen increased his stake in the company and opted to close several U.S. stores. In contrast, French video game publisher Ubisoft (UBI.PA) saw its stock plummet by 33% following an announcement of a company reorganization and the cancellation of six games. This development raises concerns about the overall health of the gaming industry.

• Goldman Sachs Raises Year-End Gold Forecast

  Goldman Sachs has revised its year-end gold forecast, projecting a price of $5,400. This adjustment reflects ongoing economic uncertainties and investors' increasing interest in safe-haven assets.

• Global Chip Stocks Rally on AI Euphoria

  Global chip stocks have experienced a surge following comments from Nvidia CEO Jensen Huang at the World Economic Forum, where he fueled excitement over AI advancements.

• Gold Prices Drop After Trump Cools Greenland Rhetoric

  Following Trump's cooling of tensions regarding Greenland, gold prices have seen a decline as investors reassess their strategies.

The dynamics of international trade relations continue to shape investor sentiment and market performance. As corporate earnings reports roll in and economic data emerges, the focus will likely remain on how these elements interact in a complex global landscape.