Wall Street Futures Rebound as Geopolitics Ease and Bank Earnings Take Center Stage

U.S. stock index futures edged higher on Thursday, snapping a two-session losing streak as investors drew cautious optimism from easing geopolitical tensions and a fresh round of major bank earnings.

By 05:50 ET, Dow Jones futures were up 60 points, or 0.1%, S&P 500 futures gained 0.4%, and Nasdaq 100 futures led the move higher with a 0.8% advance. The rebound followed two consecutive down days on Wall Street, where technology stocks and post-earnings selling in large banks weighed on sentiment.

Markets found some relief on the geopolitical front after President Donald Trump struck a more conciliatory tone on several flashpoints. Trump said he was optimistic about reaching an agreement over Greenland following high-level talks in Washington between U.S. officials and Danish and Greenlandic leaders.

Tensions in the Middle East also appeared to ease. Trump said he had been told that killings linked to Iran’s crackdown on protests were slowing and that there was currently no plan for large-scale executions. His comments reduced fears that the U.S. was on the brink of military action after earlier threats to intervene on behalf of Iranian demonstrators had rattled markets.

Adding to the improved mood, Trump said he has “no plan” to fire Federal Reserve Chair Jerome Powell, despite the Justice Department opening a criminal investigation related to Powell’s congressional testimony. While the president noted it was “too early” to rule out future action, the reassurance helped calm concerns over political interference in monetary policy.

Attention is now shifting back to corporate earnings, with results due from Morgan Stanley and Goldman Sachs later in the day. Their reports will complete the first wave of big-bank earnings and are closely watched as indicators of economic momentum at the start of 2026.

So far, bank executives have portrayed the U.S. economy as resilient despite uncertainty around tariffs, stubborn inflation, and signs of cooling in the labor market.

In the technology space, Taiwan Semiconductor Manufacturing delivered a stronger-than-expected fourth-quarter profit, underscoring the continued strength of artificial intelligence-driven demand. As the world’s largest contract chipmaker, TSMC is seen as a bellwether for the sector.

While Trump announced new 25% tariffs on certain advanced computing chips on Wednesday, the impact on major producers is expected to be limited, given their growing manufacturing footprint inside the United States.

Together, easing geopolitical risks and solid corporate signals helped lift futures, offering Wall Street a tentative path to recovery after a choppy start to the week.