S&P futures experienced a decline for another day on Thursday as investors processed a series of quarterly earnings releases, including those from Tesla and IBM. Futures associated with the Dow Jones Industrial Average declined by 72 points, representing a decrease of 0.2%, while S&P 500 futures and Nasdaq 100 futures both fell by 0.1%. Tesla, initiating reports from the “Magnificent Seven” megacap tech group, saw a 3% decline in shares following mixed third-quarter results, whereas IBM declined approximately 6% despite surpassing estimates, as its software revenue merely met expectations. Meanwhile, oil prices rose following the imposition of additional sanctions by the Trump administration on Russia’s two largest crude companies, citing insufficient commitment to a peace process in Ukraine.

Investors are closely monitoring earnings reports, as these results are perceived to be pivotal for sustaining the ongoing bull market rally. Over three-quarters of S&P 500 companies that have reported thus far have surpassed earnings expectations, according to reports. Trade is also receiving significant attention, with President Donald Trump stating that his forthcoming meeting with Chinese President Xi Jinping is “scheduled,” alleviating some concerns regarding U.S.-China relations that had weighed on markets earlier in the week. In the previous session, the S&P 500 fell approximately 0.5%, the Dow Jones Industrial Average declined 334 points (0.7%), and the tech-heavy Nasdaq Composite dropped 0.9%, following remarks from Treasury Secretary Scott Bessent about potential U.S. export restrictions to China.

Chris Grisanti recommended that traders consider reallocating from winning positions to realize profits after the broader market’s ascent this year, suggesting a focus on more affordable sectors such as health care. “I do think this is a particularly stressful point in the market … valuations are the second-highest they’ve been in a hundred years,” he stated. Grisanti also noted parallels between the current environment and the dot-com boom of the late 1990s, observing that companies are increasingly being valued based on projections for 2030 or 2035. “These are phenomena we observed in ’98 and ’99, and it’s quite unsettling,” he added.

Inflation data scheduled for release on Friday is expected to provide further insights into the state of the economy, particularly ahead of the Federal Reserve’s upcoming meeting in late October. Market participants largely anticipate that central bankers will implement an additional quarter-point reduction in interest rates. “We don’t believe the report will dissuade the FOMC from reducing rates, even in the absence of corroborating data on nonfarm payrolls, as numerous officials are concerned that the unexpected weakness observed in the August jobs report indicates a significant decline in employment,” Sam Stovall remarked.