U.S. stock futures are subdued as traders sift through rumors of possible trade deals and quarterly reports from big-name companies. Alphabet (NASDAQ:GOOGL)’s search and cloud units boost revenues, as the Google-owner targets huge capital expenditures this year to fund its artificial intelligence ambitions, while Tesla (NASDAQ:TSLA)’s shares dip after weak auto sales dragged down net income at the electric vehicle manufacturer. U.S. business activity data is due out, along with a fresh interest rate decision from the European Central Bank.

U.S. stock futures hovered around both sides of the flatline on Thursday, as investors assessed a wave of corporate earnings and reports of more progress in global trade negotiations.

By 03:35 ET (07:35 GMT), the Dow futures contract had slipped by 152 points, or 0.3%, S&P 500 futures were flat, and Nasdaq 100 futures had gained 51 points, or 0.2%.

The main averages on Wall Street jumped on Wednesday, with the benchmark S&P 500 logging its 12th record close of 2025 and the tech-heavy Nasdaq Composite finishing above the 21,000 mark for the first time. Equities were bolstered by a Financial Times report that the U.S. and European Union were making progress toward a trade agreement that would place a baseline 15% tariff on items incoming from the bloc.

The rumors, which were later confirmed by Bloomberg News, came after President Donald Trump announced a trade pact with Japan on Tuesday that also included a 15% levy on imports into the United States. Analysts said the developments have helped to ease longstanding concerns over uncertainty around Trump’s tariff agenda as an August 1 deadline for his elevated "reciprocal" tariffs to kick in inches closer.

With roughly a fourth of firms in the S&P 500 having now reported their latest quarterly earnings, the second-quarter reporting period has been widely robust -- 67% of these groups have topped analysts’ revenue estimates and 88% have surpassed earnings per share projections.