Dow Jones futures move little ahead of corporate earnings releases

• Dow Jones futures hold steady as traders stay cautious ahead of corporate results due on Thursday.
• US index futures may gain as Treasury Secretary Bessent hinted at extending the tariff pause if China drops rare-earth curbs.
• The S&P 500 closed higher after a choppy session, lifted by strong earnings from Morgan Stanley and Bank of America.

Dow Jones futures inch higher 0.06% to move above 46,500 during European hours on Thursday, ahead of the opening of the United States (US) regular session. The S&P 500 futures move 0.07% up to remain above 6,700, while Nasdaq 100 futures rise 0.23% to trade near 25,000 at the time of writing. Traders await corporate results, with Salesforce, United Airlines, and J.B. Hunt Transport Services.

US index futures could receive support from the potential for easing trade tensions between the United States (US) and China, the world's two largest economies. Treasury Secretary Scott Bessent said at a Washington press conference, suggesting that the US may extend its three-month pause on tariffs for Chinese goods if Beijing drops plans for tighter rare-earth export controls. However, US President Trump confirmed on Wednesday that trade tensions with China remain high.

Market sentiment may improve amid increased likelihood of the US Federal Reserve (Fed) further rate cuts by the year-end. The CME FedWatch Tool indicates that markets are now pricing in nearly a 96% chance of a Fed rate cut in October and a 95% possibility of another reduction in December. Lower borrowing costs would help support the economic activities in the United States.

On Wednesday's regular session, the Dow Jones declined 0.04%, though the S&P 500 advanced 0.4% and the Nasdaq 100 gained 0.66%. The S&P 500 ended higher after a volatile session, supported by strong quarterly results from Morgan Stanley and Bank of America, which reflected robust deal-making, while ASML's solid earnings highlighted steady AI-driven demand.