U.S. stock futures rose on Thursday following Wednesday’s advances as investors digest tariff pauses by the Trump administration amid earnings reports. All four benchmark indices were trading higher.

The 10-year Treasury yield stood at 4.44%, while the two-year yield was at 4.21%. According to the CME Group's FedWatch tool, there is an 85.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.

Cues From The Last Session

Real estate, information technology, and financial sectors led the gains in U.S. stocks on Wednesday, however, communication services and consumer discretionary stocks declined, bucking the overall market trend.

On the economic front, the U.S. trade deficit widened to $98.4 billion in December, exceeding market expectations of $96.6 billion and up from a revised $78.9 billion in November. The ISM services PMI fell to 52.8 in January, below the estimated 54.3 and a revised 54 in December.

Insights From Analysts

She emphasized that this diversification is a healthy sign, predating the recent tariff-related concerns. However, Sonders cautioned that the market should brace for continued “rapid-fire sector rotations,” citing the recent movement of tech and defensive stocks. These sector-related gyrations, she predicted, are likely to persist for some time.

The market momentum remains positive overall, though the numerous policy changes under a potential second Trump administration are likely to fuel further volatility, said Louis Navellier of Navellier & Associates.

He highlighted the new administration’s apparent push for lower interest rates and energy prices, noting that both appear to be underway and are positive indicators for economic growth.

However, tariffs remain a significant wildcard due to the unpredictable nature of potential responses, particularly from China, a major U.S. trade partner. Navellier pointed out that earnings have been encouraging, and smaller capitalized stocks are performing well. Looking ahead, he suggests that if current trends continue, the Federal Reserve could eventually implement rate cuts, which would further boost market momentum.

Upcoming Economic Data

Here’s what investors will keep an eye on Thursday:

• Initial jobless claims till Feb. 1 and the U.S. productivity data for the fourth quarter will be out at 8:30 a.m., ET.

• Fed Governor Christopher Waller will speak at 2:30 p.m. and Dallas Fed President Lorie Logan will speak at 5:10 p.m., ET.

Stocks In Focus:

• Amazon.com Inc. (NASDAQ:AMZN) advanced 0.61% in premarket on Thursday ahead of its earnings, which will be released after market close. Analysts expect it to report quarterly earnings of $1.49 per share on revenue of $187.31 billion.

• Honeywell International Inc. (NASDAQ:HON) was down 0.54% as Wall Street expects it to report quarterly earnings of $2.32 per share on revenue of $9.83 billion before the opening bell.

• Bristol-Myers Squibb Co. (NYSE:BMY) slipped 0.27% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.46 per share on revenue of $11.57 billion.

• Eli Lilly And Co. (NYSE:LLY) slid 0.73% as Wall Street expects it to report quarterly earnings of $5.08 per share on revenue of $13.43 billion before the opening bell.

• Arm Holdings Plc. (NASDAQ:ARM) declined 5.08% despite reporting better-than-expected third-quarter financial results for fiscal year 2025 as it narrowed its next quarter and full-year’s guidance.

• Ford Motor Co. (NYSE:F) fell 5.09% despite upbeat fourth-quarter financial results but forecasted a tougher year.

• Sangoma Technologies Corp. (NASDAQ:SANG) was down 5.07% after it reported a loss in the second quarter and missed revenue estimates.

• Rani Therapeutics Holdings Inc. (NASDAQ:RANI) was up 40.97% after successful preclinical data for oral delivery of semaglutide which is used to treat type-2 diabetes.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.59% to hover around $71.45 per barrel.

The gold spot index was down by 0.29% to $2,859.30 per ounce. The Dollar Index was down 0.39% at 107.998 level.

Asian markets were trading higher on Thursday. China's CSI 300, Hong Kong's Hang Seng, Australia's ASX 200, South Korea's Kospi, and Japan's Nikkei 225 index advanced. European markets were mostly higher in trade.

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