Wall Street Wobbles: Trade Policy Turmoil and Market Volatility

U.S. stock index futures dropped as trade policy uncertainties and mixed corporate results impacted investor sentiment. The Trump administration's trade tensions with China and potential national security tariffs introduced market volatility, leading to fluctuations in major indexes. Investors grappled with the erratic shifts in policy and their market implications.

U.S. stock index futures declined on Thursday after a fleeting equity rally, as traders navigated the latest developments in the Trump administration's unpredictable trade strategy and a patchwork of corporate outcomes.

Wall Street had surged for a second day on Wednesday amid signs that the White House might ease trade conflicts with China and lower wide-ranging tariffs after Trump's softened stance on Federal Reserve Chairman Jerome Powell. Treasury Secretary Scott Bessent asserted that current high tariffs weren't sustainable but clarified that tariff reduction wouldn't occur unilaterally.

The National Security-motivated probe into truck imports announced by the Trump administration indicates potential new tariffs, while the president reportedly considers exempting carmakers from existing ones. Meanwhile, investors face the complexities of erratic trade policy shifts, as seen in Southwest Airlines retracting its financial outlook due to trade uncertainties, sending its stock down. Major market indices remain in decline, while IBM shares slid over government contract cuts, in contrast to ServiceNow, which soared on profit report success.

(With inputs from agencies.)