US Stocks Likely To Open Lower, Analysts Warn 'Prolonged Uncertainty Could Hurt Both US And Global Risk Assets'
U.S. stock futures fell on Friday after two consecutive days of decline on Wednesday and Thursday. Futures of major benchmark indices were lower in premarket trading.
Stocks slid as investors digested the new auto tariffs levied on foreign cars and auto parts.
President Donald Trump also warned that he would impose much higher tariffs on the EU and Canada if they retaliate against his planned tariffs.
In a Truth Social post, he threatened large-scale tariffs to counter any economic harm from the two allies. While he has recently hinted at targeting them in his upcoming "Liberation Day" tariffs, no direct actions have been taken yet.
Traders will watch out for the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures Price Index, specifically the core PCE, which excludes food and energy prices due to their volatility.
With the 10-year Treasury yield at 4.32% and the 2-year at 3.99%, the CME Group's FedWatch tool shows markets pricing in an 88.4% likelihood of the Federal Reserve maintaining current interest rates through its May meeting.
Futures
Change (+/-)
Nasdaq 100
-0.40%
S&P 500
-0.22%
Dow Jones
-0.15%
Russell 2000
0.12%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Friday. The SPY was down 0.19% to $565.98, while the QQQ declined 0.36% to $479.89, according to Benzinga Pro data.
Cues From Last Session:
Most sectors on the S&P 500 ended in the red on Thursday, with energy, communication services, and information technology stocks leading the losses. However, health care and consumer staples stocks managed to buck the trend, closing higher.
European automakers were hit hard, with Mercedes-Benz Group AG (OTC:MBGAF) sliding 1.7% and Porsche Automobil Holding SE (OTC:POAHF) dropping 2.3%.
In earnings news, shares of TD Synnex Corp. (NYSE:SNX) tumbled around 14% after the company reported its first-quarter results. Verint Systems Inc. (NASDAQ:VRNT) also ...
