U.S. equity futures edged lower in early Wednesday trading, while Treasury yields and the dollar held steady, as investors looked for clarity on President Donald Trump’s tariff policies while eyeing key inflation data later in the week.
Stocks ended modestly higher last night, with the S&P 500 rising 0.16% to extend its winning streak to three consecutive sessions, amid hopes that Trump’s April 2 tariff deadline will deliver only targeted levies on goods from U.S. trading partners around the world.
The President, however, has provided a series of mixed signals and commentary on his tariff ambitions, suggesting within a span of a few days that he may have flexibility in bi-lateral negotiations, only to then suggest there will be “few exceptions” to the reciprocal duties he plans to impose.
The on-again/off-again nature of his strategy, as well as the pullback in U.S. stocks and a slowing overall economy, has weighed on consumers, with the Conference Board’s March reading of consumer confidence slumping to the lowest level in more than four years yesterday.
Copper futures hit an all-time high in New York trading following comments from President Trump that he’ll bring forward tariffs on the industrial metal over the coming weeks.
Markets are likely to remain sensitive to tariff-related headlines again today, although focus is likely to shift to tomorrow’s jobless claims and fourth quarter GDP data heading into Friday’s reading of March PCE inflation.
Copper futures, for example, hit an all-time high in New York trading, only to quickly retreat during London hours following comments from President Trump that he’ll bring forward tariffs on the industrial metal over the coming weeks.
Treasury bonds yields were only marginally higher in the overnight session following a stronger-than-expected auction of $69 billion in new 2-year notes yesterday that drew an impressive amount of interest from foreign buyers.
Related: Stocks reclaim a chunk of March selloff, but next leg tied to earnings
Benchmark 2-year notes were last pegged at 4.007%, up from the auction’s 3.985% level, while 10-year notes eased to 4.323% heading into the start of the New York trading session.
The U.S. dollar index, meanwhile, was little-changed and trading at 104.212 against a basket of six global currency peers.
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500 suggest an opening bell decline of around 14 points, with the Dow Jones Industrial Average called 85 points lower.
The tech-focused Nasdaq, meanwhile, is priced for a 60 point decline with Tesla (TSLA) , Nvidia (NVDA) and GameStop (GME) the most-active names in premarket trading.
More Wall Street Analysis:
Analysts revisit Apple stock price targets as Cook courts BeijingAnalysts retool Southwest Air stock price targets on cost-cuttingAnalyst reboots Delta, American, Alaska Air price targets on uncertainty
In Europe, Britain’s FTSE 100 edged 0.05% lower in London ahead of a key budget statement from finance minister Rachel Reeves while the pound eased to 1.2907 against the U.S. dollar following cooler-than-expected inflation data for the month of March.
The Europe-wide Stoxx 600 index, meanwhile, was marked 0.68% lower in mid-day Frankfurt trading.
Overnight in Asia, the MSCI ex-Japan benchmark rose 0.36% into the close of trading, while a weaker yen boosted the Nikkei 225 into a 0.65% gain for the session.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
