Markets steady as 87% of S&P 500 firms beat forecasts amid Trump-Fed dispute

On Thursday, U.S. stock futures barely moved as investors reviewed new corporate results and tracked President Donald Trump’s public quarrel with Federal Reserve Chair Jerome Powell.

Futures linked to the Dow Jones Industrial Average slipped by 52 points, or 0.1% according to CNBC. Contracts tied to the S&P 500 and Nasdaq 100 hovered near unchanged levels.

In early trading, PepsiCo and GE Aerospace shares climbed after both companies reported quarterly profits that topped Wall Street forecasts.

United Airlines stock slipped a little over 1% in premarket trading on Thursday after the carrier trimmed its 2025 profit outlook.

United beat second‑quarter forecasts but now sees full‑year profit of $9 to $11 a share, lower than its prior $11.50 to $13.50 goal. Its July‑September outlook falls in line with analyst estimates.

Chief Executive Scott Kirby said, “The world is less uncertain today than it was during the first six months of 2025, and that gives us confidence about a strong finish to the year”.

United’s stock is down about 9% for the year but up roughly 20% over the past month.

87% of S&P 500 companies beat estimates

The wider earnings season has started on a strong note. So far, over 45 members of the S&P 500 have released results, and 87% of them have reported earnings above analysts’ expectations, according to FactSet.

Wednesday’s gains on Wall Street came after the president pushed back on reports that he planned to remove Powell from his Fed post.

Stocks initially tumbled when a White House official suggested that Trump “likely will soon” dismiss the Fed chair. The Dow fell over 260 points at its lowest level. The New York Times said Trump even wrote a letter asking Powell to resign and planned to show it to House Republicans.

Stocks bounced back after Trump said he was “not planning on doing it,” but added he might still consider it.

Michael Green, chief strategist at Simplify Asset Management, told CNBC that the market’s rebound suggests investors may have shrugged off the possibility of Powell’s ouster. “The only real piece of information, I would argue, that you got today is that firing Powell is not that big of a deal,” he said.

Green added that in the near term, the key driver for stock moves will likely be future earnings reports. He said he expects major technology firms to deliver “relatively positive” results. “Overall, that would suggest that the markets are going to experience some relief associated with earnings season not being as bad as people think,” he noted.

PepsiCo’s stock rose just over 1% after the company reported second‑quarter earnings of $2.12 per share on $22.73 billion in sales. Analysts expected $2.03 a share in earnings and $22.27 billion in revenue.

Asian shares rose as Nikkei and ASX 200 closed higher

In Asia-Pacific trading, markets mostly gained ground on Thursday. Hong Kong’s Hang Seng Index finished flat at 24,498.95. China’s CSI 300 climbed 0.68% to 4,034.49.

Japan’s Nikkei 225 added 0.6% to close at 39,901.19, while the broader Topix index rose 0.72% to end at 2,839.81. South Korea’s Kospi edged up 0.19% to 3,192.29, and the smaller Kosdaq jumped 0.74% to 818.27.

Australia’s S&P/ASX 200 closed 0.9% higher at 8,639. In India, the Nifty 50 was down 0.12% and the Sensex fell 0.25% as of 1:55 p.m. Indian Standard Time (4:25 a.m. ET).

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