S&P 500 Forecast: Broad Market Edges Higher, But Qualcomm and Arm Weigh on Nasdaq 100

S&P 500 Futures Edge Higher as Earnings Take Center Stage

S&P 500 futures ticked up on Thursday as investors weighed a fresh round of corporate earnings. Futures linked to the broad market index climbed 0.2%, while Dow Jones Industrial Average futures added 56 points, or 0.1%. Nasdaq 100 futures remained flat as semiconductor stocks came under pressure following mixed results from chipmakers.

The broader market posted back-to-back gains in the previous session, with the Dow rising 317 points, or 0.71%. The S&P 500 and Nasdaq Composite added 0.39% and 0.19%, respectively, supported by a rally in Nvidia shares. Investors appeared to set aside trade concerns after President Donald Trump paused tariffs on Mexican and Canadian goods.

Chip Stocks Slump After Earnings Disappoint

Semiconductor stocks came under heavy selling pressure in extended trading. Qualcomm fell 5% after executives said its patent-licensing business would not see sales growth this year due to an expired agreement with Huawei. Arm Holdings also slipped 5% as it no longer expects to hit the upper end of its prior full-year forecast, despite beating quarterly expectations.

Apple supplier Skyworks Solutions took the biggest hit, plunging 28% after reporting weak revenue guidance for its mobile segment. The company’s projected quarterly profits also fell short of expectations, fueling concerns over slowing demand in the smartphone market.

Honeywell and Ford Provide Gloomy Guidance

Industrial and aerospace giant Honeywell slid 3.5% after forecasting downbeat sales and profit for 2025. The company also announced plans to split into three independent entities, a move that failed to lift investor sentiment.

Ford shares tumbled 5.2% after the automaker projected up to $5.5 billion in losses from its electric vehicle and software operations this year. The company also warned of a challenging 2025 outlook, further weighing on its stock.

Jobless Claims Rise More Than Expected

New unemployment claims rose to 219,000 last week, exceeding the expected 214,000. The four-week moving average ticked up to 216,750, signaling some softening in the labor market. Continuing claims also increased to 1.89 million, suggesting that more workers are struggling to find new jobs.

Despite the uptick, jobless claims remain within their recent range, and markets are now shifting focus to Friday’s nonfarm payrolls report for a clearer picture of labor market strength.

Market Outlook: All Eyes on Payrolls and Fed Policy

With the S&P 500 trading just 1% below its all-time high, investors are closely watching Friday’s jobs report, which could influence Federal Reserve policy expectations. While traders anticipate the Fed will hold rates steady at its March meeting, a rate cut is widely expected by June.

However, analysts warn that new tariff policies could drive inflation higher, potentially slowing the pace of Fed cuts. With earnings season in full swing and economic data in focus, traders will be looking for further signals on market direction in the days ahead.

More Information in our Economic Calendar.