From Biden’s Exit to Ford’s Fall: Key Market Moves You Need to Know

Biden Steps Aside, Paving Way for New Leadership

President Joe Biden addressed the nation on Wednesday, announcing his decision not to seek reelection in a bid to unite his party and pass the torch to a new generation of leaders. At 81, Biden is the oldest president in U.S. history, making his decision significant amid concerns about his age and health. Vice President Kamala Harris is now poised to take the lead as the Democratic Party’s candidate, marking a pivotal shift in the upcoming election landscape.

Futures Show Mixed Sentiment Ahead of Economic Data

U.S. stock futures displayed mixed signals on Thursday following a significant tech-led selloff in the previous session. By early morning (as of 6:13AM ETD), Dow futures showed a slight increase (+0.12%), while S&P 500 futures dipped (-0.17%) and Nasdaq 100 futures fell notably (-0.31%). The market remains cautious ahead of the release of crucial growth data, with investor sentiment influenced by recent disappointing earnings from tech giants like Alphabet and Tesla.

Ford Falters on Second-Quarter Profit Miss

Ford reported a substantial profit miss for the second quarter, sending its stock plummeting by over 13% in premarket trading as of 6:13AM ETD. The automaker cited persistent quality issues and challenges in its EV business as key factors contributing to the earnings shortfall. Despite efforts by CEO Jim Farley to address these issues, including a significant increase in warranty expenses, Ford continues to navigate a competitive landscape that favors EVs and hybrids over traditional gas-engine vehicles.

European Earnings Season Unfolds

In Europe, several key companies released their quarterly earnings reports, offering insights into the region’s economic health. Luxury giant Kering disappointed with a sharper-than-expected decline in sales, while AstraZeneca exceeded expectations with raised sales and profit forecasts driven by strong demand for its therapeutic offerings. Sanofi also reported positive results boosted by robust sales of its flagship asthma drug, while Nestle adjusted its sales outlook downward due to unexpected price pressures.

Oil Prices Retreat Amid Demand Concerns

Crude oil prices faced downward pressure on Thursday, driven by concerns over weakening global demand, particularly from China. Both U.S. crude (WTI) and Brent crude contracts experienced declines, despite a temporary boost from a larger-than-expected drawdown in U.S. crude inventories reported earlier in the week. Lingering worries about a potential surplus in the oil market for 2025, coupled with geopolitical tensions, continued to weigh on market sentiment towards crude.