A sign is posted in front of Intel headquarters in Santa Clara, California, on Aug. 1, 2024.
- Stock futures were little changed Thursday morning ahead of more economic data.
- The U.S. deficit exceeded $1 trillion in the first five months of fiscal 2025.
- Intel named Lip-Bu Tan as its new CEO.
Here are five key things investors need to know to start the trading day:
1. Tech support
Gains in tech stocks like Nvidia, Tesla and Palantir helped lift the Nasdaq Composite on Wednesday, sending the tech-heavy index 1.22% higher while the S&P 500 rose 0.49%. The Dow Jones Industrial Average, meanwhile, fell 82.55 points, or 0.2%, and is on pace for its worst week since March 2023. A softer-than-expected CPI report Wednesday morning may have eased traders' concerns about the economy, and investors will get another read on inflation at 8:30 a.m. ET with the release of the February producer price index. Follow live market updates.
2. Pay back
Canada on Wednesday announced it will impose 25% retaliatory tariffs on more than $20 billion worth of American goods, a response to President Donald Trump's 25% tariffs on steel and aluminum which took effect the same day. The new Canadian duties — which begin Thursday — apply to steel and aluminum, as well as other U.S. products like computers and sports equipment. A Canadian delegation is set to meet with Commerce Secretary Howard Lutnick for trade talks in Washington on Thursday.
3. Deficit deepens
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The fiscal year is not yet halfway done, but the U.S. budget deficit has already exceeded $1 trillion. The budget shortfall stands at $1.15 trillion through the first five months of fiscal 2025 — a record for the period. The deficit surged in February, totaling more than $307 billion for the month. That's more than twice January's figure and 3.7% higher than the same time last year. The deepening of the national debt comes even as President Trump and billionaire Elon Musk target government spending through the Department of Government Efficiency, which has implemented broad job cuts across agencies.
Money Report
4. In(tel) with the new
Shares of Intel jumped more than 10% in extended trading Wednesday after the chipmaker named Lip-Bu Tan as its new CEO. Tan, the former CEO of software maker Cadence Design Systems, was an Intel board member until last year. The announcement came three months after Intel's board ousted Pat Gelsinger from the post following a troubled four-year tenure. The semiconductor company has struggled to stem market share losses and crack the AI boom.
5. Slow start
Consumers are pulling back on spending, American Eagle warned Wednesday when it reported its fourth-quarter earnings results. The retailer beat earnings expectations for the quarter and sales for the period were in line with estimates, but the company said it's seeing a "slower start" to the year than expected. Shares of American Eagle dropped more than 5% in after-hours trading. More retail earnings are on deck Thursday, with Dollar General set to report before the bell and Ulta Beauty after the close.
— CNBC's Lisa Kailai Han, Brian Evans, Pia Singh, Kevin Breuninger, Jeff Cox, Kif Leswing and Gabrielle Fonrouge contributed to this report.
