US Futures Hold Lower

Futures linked to U.S. equities saw a slight dip on Thursday, reflecting the subdued conclusion of the previous day. This was largely due to mixed economic data, which has continued to fuel uncertainty regarding the potential for increased earnings and the extent of potential rate cuts by the Federal Reserve. Contracts associated with the three major stock indices dropped about 0.2%. Notably, leading technology companies were poised for a weaker start. This sector faces increased scrutiny this year following last year's speculative investments in greater global AI implementation, which boosted software and datacenter infrastructure, uplifting U.S. equities. Financial services also remained flat after experiencing declines yesterday. In contrast, defense companies experienced a notable surge following President Trump's announcement that the U.S. military budget is set to rise to $1.5 trillion by 2027. This expansion continues the sector's recent momentum, driven by U.S. actions concerning Venezuelan President Maduro and the White House's assertive stance on Greenland. Companies like Lockheed Martin, RTX, and Northrop Grumman saw significant gains.