S&P500: Futures Hold Steady as Twilio and Novo Nordisk Steal the Spotlight

S&P 500 Futures Hold Steady as Record Highs and Trump’s Policy Comments Drive Focus

S&P 500 futures were little changed on Friday, following the index’s record close the previous day. Futures tied to the benchmark index dipped 0.17%, Nasdaq 100 futures also fell 0.17%, and Dow Jones Industrial Average futures dropped 100 points, or 0.23%. Despite these small declines, all three major indexes remain on track to post their second consecutive weekly gains, buoyed by optimism over corporate earnings and pro-business rhetoric.

The S&P 500 and Dow are up 2% and 2.5%, respectively, this week, while the Nasdaq Composite has gained 2.2%.

Did Trump’s Davos Remarks Light a Fire Under Markets?

Markets rallied Thursday after President Donald Trump’s call for lower interest rates and cheaper crude oil during his speech at the World Economic Forum in Davos. Trump reiterated his push for central banks to cut rates globally and signaled pressure on OPEC to curb oil prices. These comments provided an additional boost to risk assets, with the S&P 500 reaching an all-time high.

However, analysts expressed skepticism about Trump’s influence on such policy decisions, viewing his remarks as largely symbolic rather than actionable.

Are Treasury Yields Signaling Bigger Inflation Risks?

U.S. Treasury yields edged lower on Friday, with the 10-year yield retreating as investors processed Trump’s comments. BlackRock CEO Larry Fink cautioned that Trump’s plans to inject capital into the private sector could stoke inflation, potentially driving the 10-year yield to levels as high as 5.5% if inflation accelerates.

The Federal Reserve is expected to keep rates steady at its Jan. 28–29 meeting, with markets pricing in a near-zero chance of a rate cut. Traders are also eyeing economic data, including the S&P Global Composite PMI and existing home sales figures, for further clues about the economic outlook.

Which Stocks and Sectors Are Moving the Needle?

Shares of Novo Nordisk surged 10% after promising trial results for a new weight loss drug. Meanwhile, Boeing disclosed an expected $4 billion loss for Q4 2024, reflecting ongoing challenges in its business operations.

Tech firm Twilio gained 19% in premarket trading after analysts highlighted its potential for double-digit revenue growth and improving profitability. Twilio’s adoption by leading AI startups further supports its long-term growth prospects.

Where Are Commodities Headed This Week?

Crude oil is on track for its largest weekly loss since November, with WTI and Brent contracts down 4.2% and 3.1%, respectively. In contrast, gold has extended its rally, with futures up 0.6% for the week, marking the metal’s fourth consecutive weekly gain.

What Should Traders Watch Next?

As investors await the Fed’s policy meeting and additional economic data, focus remains on inflation risks, corporate earnings, and oil prices.

The combination of Trump’s fiscal ambitions and solid earnings growth could drive volatility in the near term, while inflationary pressures may weigh on Treasury yields and broader equity markets.

Traders should monitor the 10-year yield and key economic releases for further signals.

More Information in our Economic Calendar.