By Katy Barnato

Futures are edging up early Thursday, ahead of a likely interest-rate cut in Europe and new data on trade imbalances.

Economists expect the U.S. trade deficit, a key preoccupation of President Trump, tumbled to $66.3 billion in April. It had ballooned to a record $140.5 billion in March as businesses rushed to stockpile ahead of tariffs. Early data for April issued last week, which focused solely on goods and not services, showed the biggest monthly drop in imports on record.

In Frankfurt, the European Central Bank is seen making its eighth cut since last June, as it contends with trade tensions, a stronger euro and weaker inflation. The decision is due at 8:15 a.m. ET.

Earnings season is nearing an end, with results from AI chip maker Broadcom due after the bell.

Some 78% of S&P 500 companies have reported higher-than-expected earnings this quarter, FactSet data through Friday shows. But for the small proportion who have guided investors on the current quarter, surprisingly weak outlooks outnumber strong ones.

Meanwhile, Senate Republican leaders are trying to get Trump's fiscal megabill signed into law by July 4, but GOP senators are demanding a host of changes. On Wednesday Elon Musk stepped up his attacks on the legislation, demanding his followers on X call on lawmakers to "kill the bill."

The package will increase budget deficits by $2.4 trillion, according to a new CBO estimate. Concerns about America's fiscal trajectory have rattled bond markets recently.

In recent trading:

--Stock futures edged higher, with contracts tied to the tech-heavy Nasdaq-100 leading gains.

--Treasury yields and the dollar held broadly steady. Bonds rallied Wednesday, with 10-year yields dropping nearly 0.1 percentage point.

--European stocks rose modestly. Asian indexes also mostly gained, though Japan's Nikkei 225 retreated.

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(END) Dow Jones Newswires

June 05, 2025 06:18 ET (10:18 GMT)

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