With anticipation growing over President Donald Trump's upcoming tariff announcements, Wall Street opened lower on Thursday ahead of key inflation and jobless claims data.
Futures for the S&P 500 dropped 0.4%, while Dow Jones Industrial Average futures declined 0.2%. Nasdaq futures also fell, sliding 0.5%.
Canada and the EU swiftly retaliate against Trump's steel and aluminum tariffs
Intel emerged as one of the biggest gainers overnight, surging more than 11% after appointing semiconductor industry veteran and former board member Lip-Bu Tan as its new CEO. Tan, 65, is set to take on the challenging role next week, over three months after former CEO Pat Gelsinger’s abrupt retirement amid Intel’s ongoing downturn.
Conversely, American Eagle Outfitters saw an early decline despite surpassing fourth-quarter sales and profit expectations. The retailer noted that an “uncertain consumer and operating landscape” was dampening demand for the current quarter. Its cautious outlook concerned investors, leading to a 9% drop in shares before the market opened.
Uncertainty has dominated recent market trends, with fluctuations occurring each time President Trump announces—or postpones—a new round of tariffs. The market has been unsettled as investors and economists attempt to assess the extent of economic strain Trump is willing to impose through tariffs and other measures.
In response to Trump’s tariff decisions, the European Union, Canada, and China have introduced retaliatory tariffs of their own.
Even if Trump opts for less aggressive tariffs, the impact may still be significant. The continuous cycle of tariff announcements and reversals has already begun eroding confidence among U.S. consumers and businesses by amplifying uncertainty. This could lead to reduced spending by households and companies, slowing overall economic growth.
Asian markets slip despite Wall Street rebound amid trade war uncertainty
Some U.S. businesses report that customer behavior has already begun to shift.
Later on Thursday, new government data will be released regarding inflation at the wholesale level, along with a report detailing the number of Americans who filed for jobless benefits in the past week.
In European markets, Germany’s DAX was down 0.4% by midday, while France’s CAC 40 rose 0.1%. Meanwhile, Britain’s FTSE 100 remained unchanged.
Asian markets experienced broad declines as investors monitored developments in Trump’s trade policies. Hong Kong’s Hang Seng index fell 0.6% to 23,462.65, while the Shanghai Composite index slipped 0.4% to 3,358.73.
Japan’s Nikkei 225, which initially gained, closed 0.1% lower at 37,790.03.
South Korea’s Kospi inched down 0.1% to 2,573.64, while Australia’s S&P/ASX 200 declined 0.5% to 7,749.10.
Elsewhere, Taiwan’s Taiex dropped 1.4%, India’s Sensex slipped 0.1%, and Bangkok’s SET edged up 0.1%.