Stock Market Today: Dow Jones, S&P 500 Futures Recover As Focus Turns To Trump's Davos Address-Johnson & Johnson, Intel, GameStop In Focus

U.S. stock futures rose on Wednesday following Tuesday’s sharp sell-off. Futures of major benchmark indices were higher.

On Tuesday, the S&P 500 index recorded its worst session since October 2025, dipping more than 2% during the session as risk-off sentiment intensified following President Donald Trump's aggressive new trade stance toward Europe.

Trump threatened several European countries with additional tariffs starting Feb. 1 if negotiations over Greenland control fail, with duties potentially rising to 25% from June.

European officials warned of retaliation that could affect up to 25% of U.S. exports to Europe, potentially including services, and floated the possibility of reducing Treasury holdings.

On Wednesday, the spotlight shifts to the World Economic Forum in Davos, where Trump is scheduled to deliver a keynote address and hold discussions with foreign nations regarding Greenland.

Meanwhile, the 10-year Treasury bond yielded 4.27%, and the two-year bond was at 3.58%. The CME Group's FedWatch tool‘s projections show markets pricing a 95% likelihood of the Federal Reserve leaving the current interest rates unchanged in January.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.24% at $679.18, while the QQQ advanced 0.14% to $608.93.

Stocks In Focus

Johnson & Johnson

• Johnson & Johnson (NYSE:JNJ) was 0.33% lower in premarket on Wednesday as it is projected to post quarterly earnings of $2.46 per share on revenue of $24.16 billion before the opening bell.

• Benzinga's Edge Stock Rankings shows that JNJ maintains a stronger price trend over the short, medium, and long term, with a poor growth ranking.

GameStop

• GameStop Corp. (NYSE:GME) rose 2.70% after CEO Ryan Cohen disclosed a massive purchase of the stock. According to an SEC filing, Cohen purchased 500,000 additional shares of GameStop at a weighted average price of approximately $21.12 per share.

• Benzinga's Edge Stock Rankings indicate that GME maintains a strong price trend over the short term but a weak trend in the medium and long terms, with a robust value ranking.

Netflix

• Netflix Inc. (NASDAQ:NFLX) tumbled 5.48% despite reporting better-than-expected fourth-quarter financial results. However, it sees first-quarter revenue of $12.16 billion versus a Street consensus estimate of $12.19 billion. Also, it expects a first-quarter earnings per share of 76 cents, below a consensus estimate of 81 cents per share.

• It maintains a weaker price trend over the short, medium, and long term with a strong quality ranking, as per Benzinga's Edge Stock Rankings.

United Airlines Holdings

• United Airlines Holdings Inc. (NASDAQ:UAL) was 4.10% higher after the carrier followed a fourth-quarter earnings beat with a bullish first-quarter forecast of $1 to $1.50 per share, topping the analyst estimates.

• UAL maintains a stronger price trend over the short, medium, and long terms with a solid growth ranking, as per Benzinga's Edge Stock Rankings.

Intel

• Intel Corp. (NASDAQ:INTC) rose 2.88% after upgrades from HSBC and Seaport Research, according to a Motley Fool report.

• INTC maintains a stronger price trend over the short, medium, and long terms with a moderate value ranking, as per Benzinga's Edge Stock Rankings.

Cues From Last Session

While consumer staples stocks bucked the trend to close higher, information technology, consumer discretionary, and financial stocks recorded the biggest losses on Tuesday as most S&P 500 sectors finished on a negative note.

Insights From Analysts

Professor Jeremy Siegel believes the stock market is undergoing a significant transition, looking past “headline inflation noise” to drive a rotation from large-cap growth into small-cap and value stocks. According to Siegel, unlike previous brief reversals, this shift “appears more durable.”

He points to a roughly 10% to 12% pullback in large-cap growth stocks relative to value as investors reassess “concentration risk” after years of AI-driven dominance.

Meanwhile, the economic backdrop remains supportive. Siegel argues that growth data is “impressively resilient” and labor markets show “no stress,” creating a safety net for equities.

Crucially, Siegel sees the Federal Reserve's policy trajectory as a tailwind. With the direction of policy clear for the year, he asserts that small-cap stocks do not require “heroic earnings growth” to perform well, given their current valuations.

He concludes that the current landscape, defined by stabilizing earnings and a gradual Fed pivot, is “the kind of environment where diversification finally pays off”.

Upcoming Economic Data

Here's what investors will be keeping an eye on Wednesday.

• The delayed report of October’s construction spending, along with December’s pending home sales data, will be released by 10:00 a.m. ET.

Commodities, Gold, Crypto, And Global Equity Markets

Crude oil futures were trading lower in the early New York session by 1.18% to hover around $59.65 per barrel.

Gold Spot US Dollar rose 2.24% to hover around $4,870.22 per ounce. Its last record high stood at $4,888.13 per ounce. The U.S. Dollar Index spot was 0.02% lower at the 98.6180 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.64% lower at $89,347.25 per coin.

Asian markets closed mixed on Wednesday, as China’s CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi indices rose. While Japan's Nikkei 225, India’s Nifty 50, and Australia's ASX 200 fell. European markets were lower in early trade.