U.S. stock index futures declined on Thursday after a significant surge sparked by President Donald Trump's decision to lower tariffs on numerous countries temporarily while increasing them on China. The change came shortly after imposing new tariffs on most trading partners, leading to the S&P 500's largest single-day percentage gain since 2008 and the Nasdaq's biggest one-day jump since 2001.

Trump announced a 90-day pause on many new reciprocal tariffs but raised them on Chinese imports to 125% from 104% while Beijing matched this by imposing 84% tariffs on U.S. imports. Analysts from Rabobank noted that the trade conflict is evolving into a direct confrontation between the U.S. and China, potentially causing market fluctuations.

Despite Wednesday's rally, both the S&P 500 and the Dow remain around 4% below their levels before the reciprocal tariffs were revealed the previous week. In premarket trading, Dow E-minis were down 658 points, S&P 500 E-minis fell 117.75 points, and Nasdaq 100 E-minis dropped 503.5 points.

Market performance saw a decline in megacap and growth stocks, with Tesla slipping 4.5% and Nvidia down 3.8%. Investors remain concerned about the impact of tariffs on global growth and inflation, with economists predicting a slight decrease in headline inflation to 2.6% from last month's 2.8%.

The market also anticipates rate cuts and possible interventions by the Fed due to downside risks. Analysts foresee at least three 25-basis point cuts this year, starting in June. Amidst the economic data release and public appearances by Fed officials, the U.S. bond markets remained stable, with the 10-year note yield dropping. The CBOE Volatility Index decreased, and upcoming earnings reports, including those from JPMorgan Chase, may offer further insights into the corporate landscape.