US Stock Futures Slip Ahead Of 'Liberation Day' Tariffs Announcement: Expert Points To Uncertainty Amid Higher Risk Premia
U.S. stock futures slipped on Wednesday after a mixed session on Tuesday. Futures of major benchmark indices were lower in premarket trading.
As the “Liberation Day” has arrived, traders will look for cues from President Donald Trump’s “reciprocal tariffs” scheduled to be announced later today.
The administration is reportedly considering a widespread 20% tariff that would affect a large portion of the $3 trillion in yearly imports, according to a Washington Post report.
The 10-year Treasury bond yielded 4.17% and the two-year bond was at 3.88%. The CME Group's FedWatch tool shows markets pricing in an 85.5% likelihood of the Federal Reserve maintaining current interest rates through its May meeting.
Futures
Change (+/-)
Dow Jones
-0.17%
S&P 500
-0.22%
Nasdaq 100
-0.29%
Russell 2000
-0.30%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Tuesday. The SPY was down 0.25% to $559.58, while the QQQ declined 0.34% to $471.10, according to Benzinga Pro data.
Cues From Last Session:
Driven by gains in consumer discretionary, communication services, and information technology, the S&P 500 closed slightly higher on Tuesday, though overall U.S. stocks settled mixed.
Conversely, the health care and financial sectors experienced declines. This sector divergence occurred as investors anticipated the Trump administration’s upcoming tariff announcements.
Meanwhile, broader market indices reflected significant losses for March and the first quarter of the year: the S&P 500 saw its largest monthly drop since December 2022, falling 5.8%, while the Nasdaq and Dow tumbled 8.2% and 4.2% respectively. Quarterly, the Nasdaq declined 10.4%, the Dow 1.3%, and the S&P 500 also recorded a loss.
Economic data revealed a decline in the ISM manufacturing PMI, an increase in construction spending, and a decrease in job openings.
Index
Performance (+/-)
Value
Nasdaq Composite
0.67%
17,449.89
S&P 500
0.38%
5,633.07
Dow Jones
-0.028%
41,989.96
Russell 2000
0.016%
2,012.24
Insights From Analysts:
As investors await further direction on the economy’s outlook after Trump’s tariffs, Jurrien Timmer, the director of global macro at Fidelity Investments, in his recent note said that “More uncertainty means higher risk premia.”
Th refers ...
https://www.benzinga.com/25/04/44602347/us-stock-futures-slip-ahead-of-liberation-day-tariffs-announcement-more-uncertainty-means-higher-risk-premia-says
