Stock futures fall, with the Dow and S&P 500 set to pull back further from record highs: Live updates

Stock futures fell Thursday, putting the S&P 500 and Dow Jones Industrial Average on track to pull back further from record levels.

Futures tied to the 30-stock Dow shed 147 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures lost 0.2%.

The S&P 500 and Dow ended Wednesday’s session in the red after touching fresh all-time highs. Those declines came as crude prices slid after President Donald Trump said that interim authorities in Venezuela will be turning over as much as 50 million barrels of oil to the U.S., prompting concerns over increasing oil supply. Crude prices rebounded Thursday, with U.S. oil rising more than 1%.

Defense stocks rallied Thursday after Trump called for a $1.5 trillion defense budget in 2027. Northrop Grumman gained 6.8% in premarket trade, Lockheed Martin was last seen 6.7% higher, RTX advanced 5.4%, and Kratos Defense was up 6.6%.

Markets have largely shrugged off global geopolitical risks, but growing tensions could test the resilience of stocks as the new year begins.

“Geopolitical headlines tend to be market moving in very short periods of time … but they tend to get priced in and then the markets go back to watching the things that are more drivers of price action. For example, profits, margins, valuation and other metrics,” Anne Walsh, CIO of Guggenheim Partners told CNBC’s “Power Lunch” on Wednesday. “What ends up happening is that ‘buy the dip’ mentality returns and these very limited opportunities exist to reposition portfolios.”

“Being diversified and being ready is probably the best insurance, if you will, in terms of protecting portfolios and also being able to take advantage of opportunities,” Walsh said, adding that the stock market fundamentals remain “fairly good” with normalizing valuations and expected rate cuts ahead this year from the Federal Reserve.