US stock futures have seen modest gains with S&P 500 futures rising by 0.4%, Nasdaq futures also increasing by 0.4%, and Dow futures up by 0.3%. Recent trading was influenced by concerns over tariffs from Trump, leading to a near-continuous decline in US stocks throughout the week, despite some initial stronger performances.

Nvidia and other key tech stocks faced notable declines, falling over 8% recently. Even with a slight pre-market recovery, confidence remains low due to past patterns of volatility, ongoing AI market challenges, and potential market pressures ahead, including upcoming US PCE price data and further Trump-related news.

Technical indicators show that the S&P 500 has fallen below its 100-day moving average, while the Nasdaq is approaching its 200-day moving average. The current gains do not reflect the underlying instability in market sentiment, suggesting continued risks as the weekend approaches.

Market moves this week have been closely tied to shifting policy expectations and uncertainty linked to Trump’s trade stance. After the sharp fall across major US indices, today’s slight bounce in futures might provide some relief. However, the broader trend does not indicate a true shift in sentiment.

Michael’s policies have investors weighing the potential for heightened trade barriers, especially after recent remarks on tariffs. The past few sessions saw pronounced reactions in equities, with some of the largest companies facing fast declines. Nvidia’s sharp drop was a clear reflection of this, given its importance in both the AI sector and broader tech space. While today’s modest recovery in pre-market suggests some bargain hunting, previous trends show that these kinds of rebounds do not always hold.

Beyond individual stocks, the technical setup for broader indices raises further questions. With the S&P 500 already dipping under its 100-day moving average, the ongoing weakness leaves little room for confidence. Meanwhile, the Nasdaq being near its 200-day level suggests pressure could persist. If sellers take control again, a break of these levels might drive sharper moves down.

Some traders may find short-term opportunities, but there is little evidence to suggest that volatility is about to ease. The upcoming US PCE price data remains a key event, particularly with inflation continuing to shape expectations for interest rates. Depending on how that report comes in, it could either stabilise sentiment or add to the uncertainty.

Weekend positioning may also play into today’s trading, given the potential for fresh developments regarding US policies. Sentiment-driven moves have been the defining theme of this week, and that is unlikely to change as we head into the next round of economic and political updates. Investors reacting too early to short-term gains run the risk of misinterpreting what remains a fragile situation.