Stock futures dipped on Wednesday morning as market participants await details about President Trump’s forthcoming tariffs on U.S. trading partners. The futures linked to the S&P 500 and the Nasdaq were down by 0.7% and 0.9%, respectively, around 90 minutes before the market’s opening bell. Meanwhile, futures for the Dow Jones Industrial Average dropped 0.5%. The market has been volatile this week as investors position themselves ahead of the expected tariff news, concerned about its potential impact on the economy.
President Trump is expected to unveil his plans for “reciprocal tariffs” this afternoon, which are levies on countries that impose trade barriers against U.S. exports. The president has said the tariffs aim to protect American industries, restore jobs and manufacturing within the U.S., and generate revenue. However, many economists warn that these tariffs could reignite inflation and slow economic growth.
S&P 500 Futures and the Impact of Rising Tariffs
The yield on the 10-year Treasury, which has fallen amid growing economic worries, was slightly down at 4.14% this morning. This yield influences borrowing costs for loans, including mortgages, and has been at its lowest level in a month.
Tesla’s (TSLA) stock, which has fallen by one-third since the beginning of the year, saw a 3% decline in premarket trading as the electric vehicle maker prepares to release its first-quarter delivery report. Other major tech stocks also experienced losses. Nvidia (NVDA) dropped by about 2%, while other giants like Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META), and Broadcom (AVGO) saw a decline as well.
Market Volatility and the S&P 500 Futures Outlook
Additionally, stocks of companies such as Palantir (PLTR), Super Micro Computer (SMCI), and AppLovin (APP) – all of which have been particularly volatile recently – slipped more than 2% ahead of the opening bell. Gold futures rose by 0.4% to $3,155 per ounce, nearing a record high. Meanwhile, West Texas Intermediate crude oil futures dropped by 0.5% to $70.85 per barrel. Bitcoin remained mostly unchanged, trading around $84,500.
As investors continue to monitor these developments, the future of the S&P 500 futures remains uncertain, with much riding on the announcement of the tariff plan and its potential to shake the market.
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Source: www.investopedia.com
