Market Overview
U.S. stock futures declined on Thursday night, but traders remained optimistic, expecting a positive end to the week. Futures for the Dow Jones Industrial Average dropped by 0.16%, while S&P 500 futures and Nasdaq 100 futures both saw a decrease of 0.18%. Despite the dip in futures, the broader market showed promise for the week ahead.
RH Surges After Strong Earnings
In after-hours trading, home furnishings retailer RH saw a 19% jump in stock price after its first-quarter adjusted earnings exceeded Wall Street’s expectations. The company also mentioned it had been shifting its sourcing out of China in response to evolving U.S. tariff policies, a move that was seen as a strategic adaptation to the current trade environment.
Major Indexes in Positive Territory
On Thursday’s regular trading session, the Dow Jones Industrial Average and Nasdaq Composite each gained 0.2%, while the S&P 500 rose by nearly 0.4%. The S&P 500 is now within 2% of its all-time high reached in February, reflecting a steady recovery in the market.
Producer Price Index Boosts Investor Sentiment
The release of the May producer price index showed a gain of 0.1% from the prior month, which was cooler than the 0.2% increase economists had expected. Bond yields eased in response, lifting investors’ sentiment. Earlier this week, the May consumer inflation report also came in below expectations, further boosting market optimism.
Concerns Over Tariff Policy
Despite positive economic data, concerns about the White House’s tariff policies held back market gains. Treasury Secretary Scott Bessent signaled that the Trump administration might extend the current 90-day tariff pause beyond its July 9 deadline if trading partners show “good faith” in negotiations. However, President Donald Trump expressed concerns about unilateral tariffs, warning that letters would be sent to countries detailing the deal, similar to his actions with the EU.
Solid Week Ahead for Markets
Stocks are on track for solid gains this week, with the S&P 500 up nearly 0.8%, the Nasdaq Composite on pace for a 0.7% increase, and the Dow expected to rise by 0.5%. If the trend continues, all three indexes are set to record their third consecutive positive week.
Looking Ahead
Investors are now waiting for the preliminary June reading of the University of Michigan’s consumer sentiment report, which is expected to provide more insights into the overall economic outlook.
