U.S. stock index futures edged higher on Wednesday as cautious investors waited for U.S. President Donald Trump to deliver his closely watched speech at the annual World Economic Forum in Switzerland. Markets remain tense amid escalating disputes over Trump’s push for U.S. control of Greenland and his threat to impose additional tariffs on several European countries, topics expected to dominate his discussions with global leaders on the sidelines of the event.
Beyond geopolitics, corporate developments also drew attention. Netflix released cautious forward guidance shortly after improving its takeover bid for Warner Bros. Discovery, while regulatory filings indicated that Berkshire Hathaway may reduce or exit its stake in Kraft Heinz.
Futures point higher after sharp selloff
U.S. equity futures signaled a modest rebound following Tuesday’s steep losses, which marked Wall Street’s worst session since October.
By 02:21 ET (07:21 GMT), Dow Jones futures were up 103 points, or 0.2%, while S&P 500 futures rose 27 points, or 0.4%. Nasdaq 100 futures outperformed, gaining 114 points, or 0.5%.
Stocks tumbled in the prior session after Trump warned of further tariffs on European nations unless his demands over Greenland were met. The selloff was compounded by a surge in U.S. Treasury yields, which pushed the 10-year yield to its highest level since August, while the dollar weakened against major peers.
Investors remain unsure whether Trump will act on his tariff threats and how European governments might respond. Adding to the cautious tone, Japanese government bond yields continued to rise ahead of a snap election scheduled for early next month.
Trump set to take the spotlight at Davos
Trump is expected to command market attention later Wednesday when he addresses the World Economic Forum in Davos. He is also scheduled to meet several world leaders, where he is likely to reinforce his stance on Greenland, a semi-autonomous Danish territory he has argued is critical for U.S. national security.
Although Trump adopted a slightly softer tone on Tuesday, saying he wanted a deal that would keep NATO allies “very happy,” uncertainty remains. Asked how far he would go to secure control of Greenland, he responded cryptically: “You’ll find out.”
Markets remain uneasy as Trump has warned he could impose fresh 10% tariffs on eight European countries, potentially raising them to 25% by June. European officials have condemned the approach as economic coercion, a sentiment echoed at Davos by French President Emmanuel Macron.
According to the Wall Street Journal, Trump’s speech is also expected to outline key elements of his second-term economic agenda, with trade policy and tariffs playing a central role.
Netflix delivers mixed earnings outlook
Netflix shares slid in extended trading after the company issued conservative financial guidance, even as it continues to pursue a major acquisition of Warner Bros. Discovery assets.
The streaming giant forecast first-quarter operating margins of 32.1% and revenue of $12.16 billion, both below Wall Street expectations. For full-year 2026, Netflix projected revenue with a midpoint of $51.2 billion, slightly ahead of estimates, but operating margins were expected to fall short due in part to roughly $275 million in acquisition-related costs.
Despite the cautious outlook, Netflix reported strong fourth-quarter results, with revenue rising to $12.05 billion and net income reaching $2.42 billion. Subscriber numbers also climbed past 325 million, supported by popular releases such as the final season of Stranger Things and the film Frankenstein.
The earnings came shortly after Netflix sweetened its $72 billion offer for Warner Bros’ studios and streaming operations, as it competes with a rival bid from Paramount Skydance. Analysts at Jefferies described the results as “mixed,” noting that greater deal certainty could act as a positive catalyst for the stock.
Later on Wednesday, investors are also awaiting earnings from Johnson & Johnson and Charles Schwab.
Berkshire may exit Kraft Heinz investment
Berkshire Hathaway disclosed after U.S. markets closed that it may sell up to 325 million shares of Kraft Heinz, effectively its entire holding in the packaged food maker. The stake represents around 27.5% of Kraft Heinz’s outstanding shares.
Berkshire previously wrote down the value of its Kraft Heinz investment and has criticized the company’s plans to split up its business. Following the disclosure, Kraft Heinz shares fell more than 3% in after-hours trading.
Analysts at Vital Knowledge described the move as the first major strategic decision under new CEO Greg Abel, who succeeded legendary investor Warren Buffett. They noted that the potential divestment reflects a pessimistic outlook for the packaged food sector rather than any liquidity need at Berkshire.
Gold surges to fresh record highs
Gold prices surged to new all-time highs on Wednesday as escalating geopolitical tensions and renewed trade fears drove investors toward safe-haven assets.
Spot gold jumped 2.3% to $4,862.75 an ounce by 03:35 ET, after touching an intraday record of $4,887.82. U.S. gold futures also climbed 2.1% to a fresh historic high of $4,865.91 an ounce.
Meanwhile, oil prices fell sharply amid concerns that U.S. tariff threats could slow global economic growth. This followed gains in the previous session after Kazakhstan, an OPEC+ producer, temporarily halted output at two oilfields.
Markets are now awaiting a monthly report from the International Energy Agency, as well as fresh U.S. data on crude oil and gasoline inventories later this week.
