Live Updates: Stock Futures Dip as Trump Unveils Threat of Unilateral Tariffs

Stock futures dipped early Thursday. President Trump signaled he might impose tariffs on trading partners in two weeks, stirring market anxiety.

Futures for the S&P 500 fell nearly 0.6%. Nasdaq 100 futures dropped around 0.5%. Dow futures were down by 284 points, or 0.7%.

Boeing’s stock took a significant hit, dropping over 7% in premarket trading. This came after an Air India Dreamliner 787 crashed shortly after takeoff with 242 passengers on board. In contrast, Oracle shares surged more than 7% after reporting strong fiscal fourth-quarter results, highlighting growth in cloud services.

Trade issues remain a hot topic. Trump mentioned he might extend a deadline for U.S.-China trade talks. "I would, but I don’t think it’s necessary," he said. Recent negotiations in London between U.S. and Chinese officials yielded a preliminary agreement. However, it still needs approval from both Trump and China’s President Xi Jinping.

After a losing Wednesday, the S&P 500 snapped a three-day winning streak, bringing it closer to a new record high, but still about 2% below its late February peak. Inflation concerns persist, as the economy appears to be slowing. "I don’t think the market believes we won’t see even slight increases in inflation," noted Scott Wren, a senior strategist at Wells Fargo.

Investors are anticipating the May producer price index data due out later today. Economists expect a modest gain of 0.2%, with core PPI projected to show a 0.3% increase after excluding food and energy.

Historically, trade tensions have influenced markets significantly. For instance, during the U.S.-China trade war in 2019, markets experienced volatility as tariffs were imposed and lifted. This latest round of negotiations recalls that time when uncertainties also impacted investor confidence deeply.

Recent surveys show that 78% of investors are cautious about the economy’s trajectory, emphasizing the hesitancy around upcoming trade discussions. As the market navigates these challenges, insight from experts will be vital in understanding potential outcomes.

For further updates on market trends and insights, you can explore the full report from Reuters.

Source link

Breaking News: Markets,Stock markets,Markets,United States,Donald Trump,Economic events,Xi Jinping,Oracle Corp,S&P 500 Fut (Mar'23),NASDAQ 100 Fut (Mar'23),Dow Jones Fut (Mar'23),S&P 500 Index,NASDAQ Composite,Dow Jones Industrial Average,China,Boeing Co,business news