The recent optimism on Wall Street dissipated early Thursday as companies continued to reassess their financial outlooks due to uncertainty over U.S. President Donald Trump’s on-again-off-again tariff policies, according to the Associated Press. Futures for the S&P 500 were down 0.1% before the bell, while futures for the Dow Jones Industrial Average dipped 0.3%. Nasdaq futures were off 0.1%.
Thursday’s nominal downturn in markets comes after a two-day rally that was fueled by Trump backing off his criticism of the Federal Reserve and softening his tough talk about trade with China.
PepsiCo fell 1% in the premarket after the beverage and snack maker lowered its full-year earnings expectations, citing increased costs from tariffs and a pullback in consumer spending. A 25% tariff on imported aluminum for cans is among those hitting PepsiCo and other beverage makers.
Southwest Airlines became the latest carrier to pull elements of its profit forecast over uncertainty about the economy. Its shares fell 4% before markets opened. Earlier this month, Delta Air Lines scratched its performance expectations for 2025, citing similar uncertainty over tariffs and consumer spending.
In energy trading, benchmark U.S. crude rose 74 cents to $63.01 per barrel. Brent crude, the international standard, added 70 cents to $65.88 per barrel.
The U.S. dollar slipped to 142.37 Japanese yen from 143.15 yen.
