Updated 2 min read
US stock futures leaned higher on Wednesday, gearing up for a rebound bid after Wall Street suffered its steepest selloff in months.
Dow Jones Industrial Average futures (YM=F) were little changed, while those on the S&P 500 (ES=F) put on 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose roughly 0.2%, too, as premarket gains cooled.
Markets are coming off a bruising session Tuesday that saw investors rush for the exits against a backdrop of global insecurity. The Dow (^DJI) plunged more than 850 points, while the S&P 500 (^GSPC) slid and the tech-heavy Nasdaq Composite (^IXIC) both dropped over 2%, weighed down by broad losses in megacap technology stocks.
All three major indexes recorded their worst daily performances since Oct. 10, with the S&P 500 and Nasdaq now in the red for 2026.
Trump escalated tensions by reiterating his push to acquire Greenland and threatening to slap 200% tariffs on French wine and champagne after French President Emmanuel Macron reportedly declined a role on Trump’s proposed “Board of Peace” for Gaza.
Tuesday’s downturn was accompanied by a classic “sell America” trade. US Treasury yields jumped sharply, with the 10-year yield briefly topping 4.3%, while the US dollar weakened. Gold (GC=F) and silver (SI=F) flew to more records.
All eyes Wednesday will be on the World Economic Forum in Davos, where Trump is set to hold meetings with other countries over Greenland and give his key address.
Wednesday also brings a day of oral arguments at the Supreme Court over Trump’s firing of Lisa Cook. The outcome of the case lays the groundwork for ensconcing Federal Reserve members in a legal framework that protects from presidential firing. The case is a landmark examination of the Fed’s independence as attempts are made to establish the central bank as “a uniquely structured, quasi-private entity”.
Meanwhile, attention is turning to a busy stretch of corporate earnings that investors hope can stabilize markets. Netflix (NFLX) stock fell in premarket trading after its earnings showed more uncertainty ahead for the streaming giant. Johnson & Johnson (JNJ) and Charles Schwab (SCHW) are scheduled to report results on Wednesday, among a slew of mid-sized financial institutions.
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S&P 500 profit beats draw worst stock price reaction on record
S&P 500 (^GSPC) companies are handily beating earnings estimates, yet unimpressed investors are delivering the worst share-price reactions on record as the outlook for 2026 turns murky.
While it’s still early days, data compiled by Bloomberg Intelligence show about 81% of S&P 500 firms have beaten fourth-quarter profit expectations so far. However, their shares have trailed the benchmark by an average of 1.1 percentage points — the worst relative performance across data going back to 2017.
Among the stocks that underwhelmed, 3M Co.’s (MMM) shares fell 7% on Tuesday even as the company topped profit estimates, with investors focusing instead on a glum forecast. State Street Corp. (STT) dropped 6.1% as a dimmer net interest income outlook overshadowed better-than-expected quarterly results. Netflix Inc. (NFLX) also declined about 6% in premarket trading Wednesday after a disappointing outlook.
The trend emphasizes just how high the stakes are for corporate earnings this quarter as US stocks kicked off the year scaling record highs. That’s lifted valuations above long-term averages just as analysts have been cutting profit estimates ahead of the reporting season.
“Beating consensus isn’t the hurdle right now. The hurdle is raising the forward path enough to justify already rich valuations in a market that’s still sensitive to rates and policy uncertainty,” said Aneeka Gupta, macroeconomic research director at WisdomTree. “In that environment, a beat without strong guidance becomes a ‘sell-the-news’ event.”
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Nvidia CEO Jensen Huang on job risk from AI
Jensen has talked about this topic many times, but always good to hear his latest thinking.
He is seeing a “boom” in trade jobs, six figure salaries, helping to build out AI infrastructure.
“Everyone should be able to make a great living,” Huang said.
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Nvidia CEO Jensen Huang on demand backdrop
From Jensen’s talk at Davos:
seeing the “largest infrastructure build out in human history.” There is “trillions of dollars” of infrastructure that needs to be built out.
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Nvidia CEO Jensen Huang takes the stage at Davos
Jensen sporting a simpler leather jacket than the one he wore at CES. This is Jensen’s first time at Davos for the World Economic Forum.
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Trump doubts Greenland threats will spoil
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China stocks rally on growing tech bets, defying global sell-off
Bloomberg reports:
Chinese stocks defied a pullback in global markets Wednesday, as optimism about Beijing’s stronger push to achieve technology self-reliance eclipsed concerns over rising geopolitical uncertainties.
The Nasdaq-style STAR 50 Index jumped 3.5% to the highest level since October. The broader onshore benchmark CSI 300 (000300.SS) ended the day slightly higher.
… Driving the outperformance of the world’s second-largest stock market was a fresh pledge by Chinese policymakers to accelerate efforts to develop homegrown artificial intelligence and aim for technological breakthroughs. Chinese markets have shown surprising resilience in the past year, with strong exports and policy support for advanced manufacturing and technologies cushioning the blow from tariff tensions.
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Bitcoin drops below $90,000 threshold following equities in risk-off sale
Bloomberg reports:
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Gold reaches new record high with Greenland instability pushing haven higher
Bloomberg reports:
