The recent Wall Street rally ended on Thursday because companies faced unclear financial projections while President Donald Trump maintained his unpredictable tariff policies. The SPY (S&P 500 ETF) futures showed a 0.1% premarket decline following the 535.217 closing price. The DIA (Dow Jones Industrial Average ETF) futures dropped 0.3% from 394.424 and QLD (Nasdaq-100 2x ETF) futures decreased 0.1% from 81.376.
The market experienced a two-day rise before investors pulled back because Trump stopped his Federal Reserve criticism and reduced his forceful China trade stance. Companies have started to reassess their projections because of the ongoing tariff-related uncertainty which Trump has been switching between increasing and suspending.
The premarket stock price of PepsiCo decreased by 1% because the company reduced its annual earnings forecast due to rising costs from tariffs and decreased consumer spending. The beverage giant faces supply chain disruptions which affect all manufacturers in the same way.
Southwest Airlines stock prices dropped 4% in premarket hours because the company reduced its profit forecast due to economic uncertainty from tariffs and consumer uncertainty. The airline industry faces significant risks from trade policy changes because Delta Air Lines and Southwest Airlines both removed their 2025 guidance.
The market shows a defensive attitude because investors need to balance Trump’s unpredictable trade policies with general economic indicators. The earnings season is expected to be turbulent because tariffs create higher costs and reduced demand across various sectors of business.
