### Stock Futures Dip as Trade Uncertainty Looms; Gap Tumbles in Extended Trading

Stock futures edged lower on Thursday night amid fluctuating global trade scenarios, continuing a period of market volatility. Dow Jones Industrial Average futures dropped by 63 points, or 0.1%. Futures tied to the S&P 500 fell 0.2%, while Nasdaq-100 futures slipped 0.3%.

In extended trading, investors examined fresh quarterly results. Gap's shares nosedived more than 14% following a disheartening second-quarter outlook, despite surpassing first-quarter earnings expectations. In contrast, Ulta Beauty saw an 8% rise in its shares due to strong first-quarter results. Dell Technologies experienced a 2% gain, driven by robust first-quarter revenue figures.

Thursday's trading session was marked by market swings, with major averages closing substantially lower than their intraday highs. The turbulence was partly due to the Court of International Trade's recent maneuvering: it initially halted most of President Trump's tariffs on Wednesday night but later granted a stay on Thursday afternoon, keeping the duties in place until next week. This situation adds another layer of uncertainty for a market already delicate due to macroeconomic concerns and fears of a recession induced by altered U.S. trade policies.

Despite these challenges, stocks are on track to close May with significant uplifts. The S&P 500 has risen more than 6% this month, while the Nasdaq Composite has surged by 10%. The Dow Jones has gained approximately 4%. According to Ed Clissold, chief U.S. strategist at Ned Davis Research, market momentum could persist into the summer, but he cautioned that soft data might impact this trajectory in the upcoming quarters.

Weekly performance also shows positivity, with the S&P 500 up by about 2%, the Dow by 1.4%, and the Nasdaq advancing 2.3%. Investors are also keenly anticipating the release of the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) index, on Friday.

Sentiment among Main Street investors has taken a pessimistic turn this week. The American Association of Individual Investors reported an increase in bearish sentiment to 41.9%, up from 36.7% last week, significantly higher than the historical average of 31.0%. Bullish sentiment dropped to 32.9%, falling from 37.7% last week, and remained below the historical average of 37.5%.

Expectations for the April PCE index, to be released Friday morning, project inflation slightly above 2%. Economists predict a 0.1% month-over-month rise and a 2.2% year-over-year increase. The core PCE, excluding volatile food and energy prices, is anticipated to show a 0.1% monthly uptick and a 2.6% yearly rise, aligning with the Federal Reserve's favored inflation measure.

In other company-related developments, Costco reported quarterly results that met and slightly surpassed analysts' expectations, yet its shares saw little change. Dell Technologies' strong first-quarter revenue led to a 5% rise in its stock, further buoyed by an upbeat full-year earnings guidance.

As investors continue to navigate a landscape filled with trade uncertainties and economic fluctuations, these mixed signals and data releases will remain key factors influencing market movements in the short term.