US STOCKS-Wall St set to extend gains on tariff relief; data in focus

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Futures up: Dow 0.41%, S&P 500 0.60%, Nasdaq 0.91%

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Procter & Gamble (PG) Q2 revenue is a touch shy of estimates

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US final Q3 GDP +4.4% vs est +4.3%

(Updates with pre-opening prices, analyst comments)

By Sruthi Shankar and Pranav Kashyap

Jan 22 (Reuters) -

Wall Street's main indexes were set to extend gains on Thursday after U.S. President Donald Trump

dialed back

his threat of tariffs on European countries, while fresh data ?pointed to a resilient U.S. economy.

The main U.S. indexes rebounded on Wednesday, with the benchmark S&P 500 posting its biggest one-day percentage gain in two ?months, after Trump stepped back from imposing tariffs as leverage to seize Greenland, suggesting instead that a deal ?was in sight to end a dispute over the Danish territory.

Trump's tariff ?threats had sent shivers ?through global markets on Tuesday, though buyers quickly returned to stock markets following his U-turn.

The CBOE Volatility Index, also known as Wall Street's fear gauge, ?slid further from a two-month peak touched on Tuesday.

"The ?selloff that we saw had nothing to do with the Sell America trade. It has more to do with increased hedging by non-U.S. investors holding a record amount of U.S. ?securities," said Elias Haddad, global head of markets strategy ?at Brown Brothers Harriman.

"Investors ?are selling their U.S. assets because they're simply taking an insurance policy against more policy uncertainty on trade. Now it has stabilized."

By 8:38 a.m. ET, S&P 500 e-minis rose 40.25 points, or 0.60%, ?Nasdaq 100 e-minis climbed 232.75 points, or 0.91%, and Dow e-minis added 201 points, or 0.41%.

ECONOMIC DATA IN SPOTLIGHT

Data showed initial

claims

for state unemployment benefits increased less than expected last week, suggesting the labor market maintained a steady pace of job growth in January. Meanwhile, the U.S. economy grew by a slightly more-than-expected 4.4% in the third quarter of 2025, a final estimate showed.

The personal consumption expenditures index - the Federal Reserve's favored inflation gauge - is ?due at ?10:00 a.m. ET.

The U.S. central bank is widely expected to stand pat on interest rates next week amid still-sticky inflation and evidence of economic resilience.

Traders are also weighing uncertainty over who Trump will ?choose to lead the central bank next. He renewed his criticism of Chair Jerome Powell on Wednesday for not cutting rates more aggressively and said a decision on the next Fed chief will come soon.

The earnings season is picking up pace, and could test market sentiment as companies detail how consumer demand, cost pressures and a bumpy macro backdrop shaped their year-end performance.

GE Aerospace

slipped 4% in premarket trading despite forecasting its annual profit above estimates, while

Abbott

slid 6.9% after the medical device maker forecast current-quarter ?profit below Wall Street expectations.

Procter & Gamble (PG) slipped 0.7% as its quarterly revenue fell just short of expectations.

Chipmaker

Intel <INTC.O, up 47% so far this year, is expected to post results after the bell.

U.S.-listed shares of Alibaba Holdings rose 4% after Bloomberg News reported the Chinese e-commerce firm ?is preparing to list its chipmaking arm, T-Head. (Reporting by Sruthi Shankar and Pranav Kashyap in Bengaluru; Editing by Maju Samuel)