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Stock Futures Steady as Trump Tariff Threats and Fed Comments Weigh on Markets

Stock Futures Steady as Trump Tariff Threats and Fed Comments Weigh on Markets. Source: robert cicchetti/Shutterstock

U.S. stock futures remained stable on Thursday evening as investors reacted to new tariff threats from President Donald Trump and cautious Federal Reserve signals on interest rate cuts.

S&P 500 Futures held at 6,138.50 points, while Nasdaq 100 Futures edged up 0.1% to 22,166.25 points. Dow Jones Futures saw slight gains, reaching 44,293.0 points.

Trump reiterated his intent to impose 25% tariffs on key sectors, including automobiles, pharmaceuticals, semiconductors, and lumber, heightening fears of a trade war. He also warned of reciprocal tariffs on major trading partners, with some duties possibly taking effect by early April. The uncertainty over whether these threats are a negotiation strategy or a real policy shift kept investors cautious.

The stock market saw losses on Thursday, driven by weak corporate earnings and Fed concerns. Walmart (NYSE: WMT) dropped 6.5% after reporting lower-than-expected quarterly earnings, raising worries about slowing consumer spending. The decline affected other retail stocks. Block Inc (NYSE: XYZ) also fell 6% in after-hours trading due to disappointing results.

Additionally, recent Fed statements reinforced expectations that interest rates will remain unchanged in the near term. Policymakers expressed concerns about persistent inflation, partly influenced by Trump’s trade policies. The Fed’s January meeting minutes highlighted these inflation risks, dampening investor sentiment.

On Thursday, the S&P 500 slipped 0.4% to 6,117.63 points, the Nasdaq Composite dropped 0.5% to 19,962.36 points, and the Dow Jones fell 1% to 44,176.90 points. With economic uncertainty mounting, traders will closely watch developments on tariffs, interest rates, and corporate earnings.

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