Trump’s policy remarks rattled markets, pressuring defense and financial stocks.
- Trump’s policy comments triggered a late selloff, with defense, financial and energy stocks under pressure.
- Applied Digital, Blackstone and Lockheed stayed in focus amid earnings and policy risks.
- Markets are bracing for key U.S. data, including jobless claims and productivity.
U.S. stock futures were mostly lower late Wednesday as investors digested a pullback from record highs. Policy remarks from U.S. President Donald Trump, developments around Venezuelan oil supply, and renewed pressure on financial and defense stocks kept traders cautious.
As of 9.16 P.M. ET, Nasdaq 100 futures were down about 0.02%, while S&P 500 futures ticked higher by roughly 0.08%. Dow futures were down 0.9%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) remained ‘bullish’, while sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘extremely bearish’, all amid ‘high’ message volume.
Trump’s Signals Jolt Markets
Markets reacted to a string of policy signals from Trump after he said defense companies would not be allowed to issue dividends or conduct share buybacks until production-related issues are addressed, which weighed on defense stocks.
The Dow Jones Industrial Average dropped 466 points, or 0.94%, snapping a three-day winning streak that had given the index its best start to a year since 2003. The S&P 500 slipped 0.34%, while the Nasdaq Composite rose 0.16%.
Trump also said the U.S. would move to ban large institutional investors from buying single-family homes, putting pressure on financial and private equity-linked firms. In energy markets, he said Venezuela would supply the U.S. with up to 50 million barrels of crude oil, adding that Washington intends to oversee future oil sales from the country.
The Kobeissi Letter said on X that the housing market dynamics are a growing macroeconomic constraint. The firm said the wide gap between existing mortgage rates and current borrowing costs is discouraging homeowners from selling, tightening supply, and worsening affordability pressures. It added that easing these imbalances would likely require both lower interest rates and an increase in housing supply, pointing to factors it said are shaping market behavior.
Trending Stocks To Watch
Applied Digital (APLD): The stock rose nearly 4% after-hours as the company said second-quarter revenue more than tripled, driven by strong growth in its high-performance computing hosting business. APLD added that it has signed leases with two hyperscalers across campuses in North Dakota, including CoreWeave, lifting total leased capacity to 600 MW, with additional data center capacity under development through 2027.
SMX: The stock surged over 76% in the regular session before slipping in extended trading. The company said it entered 2026 fully funded through the first quarter and is focused on expanding its Plastic Cycle Token. SMX said it is rolling out its molecular marking and material verification technology across global supply chains, with applications spanning cannabis packaging, food packaging, and recycled plastics.
Immuneering: The biotech firm said its experimental drug Atebimetinib, combined with modified gemcitabine/nab-paclitaxel, improved overall survival in a mid-stage trial involving first-line pancreatic cancer patients. Although the stock jumped over 23% in the regular session, skepticism enveloped after-hours trading, where it crashed about 20%.
Blackstone and Apollo Global Management: Private equity firms remained in focus following Trump’s comments about banning large institutional investors from purchasing single-family homes.
Lockheed Martin and Northrop Grumman: Defense contractors drew attention after Trump said dividends and share buybacks would not be permitted until companies address issues tied to military equipment production.
Markets In Wait-And-Watch Mode
In broader markets, the yield on the benchmark 10-year U.S. Treasury note eased to around 4.14%, while gold steadied near $4,460 an ounce ahead of upcoming U.S. jobs data and an annual commodity index rebalancing. Most major Asian markets slipped for a second straight session as a recent rally lost momentum, with investors weighing rising geopolitical uncertainty.
On the economic front, traders are looking ahead to releases of initial jobless claims, the U.S. trade deficit, U.S. productivity data, and U.S. consumer credit.
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