U.S. stock futures declined after paring earlier gains on Wednesday following Tuesday's sharp sell-off. Futures of major benchmark indices were lower.
On Tuesday, the S&P 500 index recorded its worst session since October 2025, dipping more than 2% during the session as risk-off sentiment intensified following President Donald Trump's aggressive new trade stance toward Europe.
Trump threatened several European countries with additional tariffs starting Feb. 1 if negotiations over Greenland control fail, with duties potentially rising to 25% from June.
European officials warned of retaliation that could affect up to 25% of U.S. exports to Europe, potentially including services, and floated the possibility of reducing Treasury holdings.
On Wednesday, the spotlight shifts to the World Economic Forum in Davos, where Trump is scheduled to deliver a keynote address and hold discussions with foreign nations regarding Greenland.
Meanwhile, the 10-year Treasury bond yielded 4.27%, and the two-year bond was at 3.58%. The CME Group's FedWatch tool‘s projections show markets pricing a 95% likelihood of the Federal Reserve leaving the current interest rates unchanged in January.
Index
Performance (+/-)
Dow Jones
-0.10%
S&P 500
-0.12%
Nasdaq 100
-0.32%
Russell 2000
-0.08%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Wednesday. The SPY was down 0.056% at $677.20, while the QQQ declined 0.21% to $606.78.
Stocks In Focus
Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) was 1.48% lower in premarket on Wednesday as it reported adjusted earnings of $2.46 per share, in line with the estimates, on the revenue of $24.6 billion, which beat the expectations of $24.16 billion, before the opening bell.Johnson & Johnson
Benzinga's Edge Stock Rankings shows that JNJ maintains a stronger price trend over the ...
