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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 23, 2025.
Brendan McDermid | Reuters
S&P 500 futures were flat on Wednesday night after the major averages posted a second straight winning day.
S&P 500 futures were up 0.1%, while Nasdaq 100 futures traded near the flatline. Futures tied to the Dow Jones Industrial Average lost 41 points, or 0.1%.
In extended trading, International Business Machines slumped more than 6%. The company posted better-than-anticipated earnings and revenue for the first quarter, but maintained its full-year guidance. Southwest Airlines lost more than 3% after the company said it plans to cut its schedule in the second half of this year and pulled its guidance for earnings before interest and taxes in 2025 and 2026.
In regular trading, the S&P 500 gained roughly 1.7%, while the Nasdaq Composite jumped 2.5%. The 30-stock Dow added more than 400 points. While the three indexes posted a second consecutive winning session, they ended the day well off their highs: At one point on Wednesday, the Dow was up more than 1,100 points.
Stocks seemed to get a lift on hopes that trade tensions between the U.S. and China would ease. Earlier this week, Trump said he is willing to take a less confrontational approach toward trade talks with Beijing. Further, Treasury Secretary Scott Bessent said Wednesday that the U.S. has the "opportunity for a big deal" on trade. Chinese imports are subject to a U.S. tariff of 145%.
"While it's encouraging to hear a more dovish tone on tariffs from the administration, stocks remain range-bound for the time being, as the ultimate goal for markets is either a reversal of the tariffs or significant trade deals," said Gaurav Mallik, chief investment officer of Massachusetts-based Pallas Capital Advisors. "It can take a few months for corrections to end, and we still believe that this is a correction given the speed of the declines."
In addition, Trump said late Tuesday that he has "no intention" of firing Federal Reserve Chairman Jerome Powell, whose term as Fed chair will end in May 2026. This seemed to boost sentiment in the market, particularly as the relationship between Trump and Powell has been growing more tense in recent days. Earlier this week, the president called Powell a "major loser."
All three of the major averages are on pace for weekly gains, with the Nasdaq up 2.6% and the S&P 500 up nearly 1.8%. The Dow is on pace for a 1.2% advance in the period.
On Thursday, investors will look for quarterly earnings reports from Alphabet, Intel and PepsiCo. On the economic data front, durable gods orders and weekly jobless claims are due in the morning.
Market hasn't fully priced in a recession yet, Deutsche Bank says
While uncertainty stemming from President Donald Trump's new tariffs have certainly fanned recessionary fears in recent weeks, the market hasn't fully bought into the idea, according to Deutsche Bank.
"It's clear that investors aren't fully pricing a recession in just yet," wrote strategist Henry Allen. "After all, the equity declines have been shallower than recent recessions, as have the widening in credit spreads and the declines in oil prices. So markets clearly don't see a recession as inevitable, particularly if the tariffs don't come into force after the latest 90-day extension."
On the flip side, investors not fully pricing in a recession means that stocks could see "significant downside risks" if an economic downturn does indeed materialize.
— Lisa Kailai Han
Stocks moving after market close include Chipotle, Southwest Airlines
Check out the companies making headlines in after-hours trading.
- Chipotle Mexican Grill — Chipotle missed first-quarter revenue estimates and said same-store sales declined for the first time since 2020, leading the stock to drop 2.1%. Chipotle also lowered the top end of its outlook for full-year same-store sales growth.
- Texas Instruments — Shares of the semiconductor manufacturer popped about 4.2% after market close. Texas Instruments reported first-quarter earnings of $1.28 per share on revenue of $4.07 billion, handily beating analysts' expectations for earnings of $1.07 per share on revenue of $3.91 billion.
- Southwest Airlines — Southwest Airlines shares dipped 3.1% after the airline on Wednesday said it will reduce its capacity in the second half of 2025, given further signs of weaker domestic bookings this year.
For the full list, read here.
— Pia Singh
English (US)