Stock Market Today: Dow Jones, S&P 500 Futures Recover As Focus Turns To Trump's Davos Address—Johnson & Johnson, Intel, GameStop In Focus - SPDR S&P 500 (ARCA:SPY)

Market Overview - U.S. stock futures rose on Wednesday after a significant sell-off on Tuesday, with major benchmark indices showing positive movement [1] - The S&P 500 index experienced its worst session since October 2025, dropping over 2% due to heightened risk-off sentiment following President Trump's new trade stance towards Europe [1] Trade Relations - President Trump threatened European countries with additional tariffs starting February 1 if negotiations over Greenland control fail, with potential duties increasing to 25% from June [2] - European officials warned of possible retaliation that could impact up to 25% of U.S. exports to Europe, including services, and mentioned the possibility of reducing Treasury holdings [2] Economic Indicators - The 10-year Treasury bond yielded 4.27%, while the two-year bond was at 3.58% [3] - The CME Group's FedWatch tool indicates a 95% likelihood of the Federal Reserve maintaining current interest rates in January [3] Index Performance - Major indices showed slight gains in premarket trading on Wednesday: Dow Jones up 0.19%, S&P 500 up 0.27%, Nasdaq 100 up 0.23%, and Russell 2000 up 0.33% [4] - The SPDR S&P 500 ETF Trust (NYSE:SPY) increased by 0.24% to $679.18, while Invesco QQQ Trust ETF (NASDAQ:QQQ) rose by 0.14% to $608.93 [4] Company Focus - Johnson & Johnson (NYSE:JNJ) projected to report quarterly earnings of $2.46 per share on revenue of $24.16 billion, down 0.33% in premarket [8] - Netflix Inc. (NASDAQ:NFLX) fell 5.48% despite better-than-expected fourth-quarter results, projecting first-quarter revenue of $12.16 billion, slightly below consensus [7] - GameStop Corp. (NYSE:GME) rose 2.70% after CEO Ryan Cohen disclosed a purchase of 500,000 shares at an average price of approximately $21.12 per share [9] Analyst Insights - Professor Jeremy Siegel noted a significant market transition, with a shift from large-cap growth to small-cap and value stocks, indicating a 10% to 12% pullback in large-cap growth stocks relative to value [13] - Siegel highlighted that the economic backdrop remains supportive, with resilient growth data and stable labor markets, suggesting that small-cap stocks do not require high earnings growth to perform well [14][15] Upcoming Economic Data - Investors are awaiting the delayed report of October's construction spending and December's pending home sales data, scheduled for release at 10:00 a.m. ET [16] Commodities and Global Markets - Crude oil futures decreased by 1.18% to around $59.65 per barrel, while Gold Spot rose by 2.24% to approximately $4,870.22 per ounce [17] - Bitcoin (CRYPTO: BTC) traded 1.64% lower at $89,347.25 per coin [19]