(Reuters) – U.S. stock futures slipped on Wednesday, with investors exercising caution as they awaited economic data and more clarity on the Trump administration’s fresh tariffs that are expected to take effect next week.
U.S. markets got a temporary moment of relief, closing higher in the past two sessions, after U.S. President Donald Trump indicated that not all tariffs would be enforced by the April 2 deadline, with some countries potentially receiving exemptions — though details remain scant.
This provided a modicum of stability to Wall Street, with the three main indexes closing on Tuesday at their highest level in more than two weeks.
Still, uncertainty about the size of U.S. tariffs and the potential for countermeasures by its trading partners as well as concerns about its fallout on the global economy and businesses have kept investors on edge.
Tuesday’s data revealed a sharp decline in U.S. consumer confidence in March – its lowest in over four years – highlighting the prevailing uncertainty surrounding tariffs and its impact on American households.
In recent weeks, investors have been offloading U.S. equities and seeking opportunities elsewhere, concerned that Trump’s tariffs might stoke inflation and stymie economic growth.
Both the benchmark S&P 500 and the tech-centric Nasdaq plunged 10% from their respective record highs earlier this month — known as a correction. The S&P has climbed has climbed more than 4% since mid-March lows, while the Nasdaq has risen about 6%.
At 6:08 a.m. ET, U.S. S&P 500 E-minis were down 10 points, or 0.17%, Nasdaq 100 E-minis were down 45.25 points, or 0.22%, Dow E-minis were down 62 points, or 0.14%.
Amid a slew of economic indicators slated for this week, focus will be on the personal consumption expenditures price index – the Federal Reserve’s favored inflation gauge – due on Friday.
Chicago Fed President Austan Goolsbee said that it may take longer than anticipated for the next cut because of economic uncertainty, according to a Financial Times interview.
Among notable stock moves, GameStop jumped 12.9% premarket following the board’s unanimous approval to incorporate bitcoin as a treasury reserve asset and its announcement of fourth-quarter results.
Dollar Tree rose 7.1% after a report said the discount-retail chain is nearing a sale of its Family Dollar business to a consortium of private equity investors for about $1 billion. The company is also due to report its results before markets open.
(Reporting by Pranav Kashyap in Bangalore; Editing by Maju Samuel)
Comments