U.S. stock futures rose slightly Wednesday as investors aimed to recover from the market’s steepest sell-off since October.
Futures on the Dow Jones Industrial Average were little changed, while those for the S&P 500 rose 0.2%. Nasdaq 100 futures also gained about 0.2%.
On Tuesday, the Dow lost more than 850 points, and the S&P 500 and Nasdaq Composite each fell more than 2%, marking their worst performances since Oct. 10. Technology shares, including several large-cap stocks, saw broad declines. The S&P 500 and Nasdaq turned negative for the year.
The market drop coincided with rising geopolitical tensions. President Trump repeated his interest in purchasing Greenland and threatened 200% tariffs on French wine and champagne after French President Emmanuel Macron reportedly declined to participate in a proposed “Board of Peace” for Gaza.
The sell-off also saw a shift in asset allocation. U.S. Treasury yields rose, with the 10-year yield briefly surpassing 4.3%. The U.S. dollar weakened, while gold and silver reached new highs.
Attention Wednesday turned to the World Economic Forum in Davos, where Trump planned meetings with foreign leaders and was scheduled to deliver a keynote speech.
Also on Wednesday, the U.S. Supreme Court was set to hear oral arguments concerning Trump’s dismissal of Federal Reserve Board member Lisa Cook. The case could clarify the legal framework around the Federal Reserve’s independence from presidential personnel decisions.
Investors were also focused on corporate earnings. Netflix shares fell in premarket trading after the company reported mixed results. Johnson & Johnson and Charles Schwab were among the companies expected to release earnings reports Wednesday, along with several regional financial institutions.
