US Stocks Likely To Open Lower Ahead Of March Inflation Release: Expert Highlights 'Fairly Weak Returns' After 5%+ Gains In S&P 500
U.S. stock futures were lower on Thursday after staging a stellar recovery on Wednesday after a tariff pause. Futures of major benchmark indices were down in premarket.
President Donald Trump attributed the tariff pause to negotiation efforts by roughly 75 non-retaliating nations in a Truth Social post.
Amid investor anxiety regarding trade barrier impacts on the economy, the investors will keep an eye on the upcoming Consumer Price Index data. Federal Reserve Chair Jerome Powell emphasized last week that there is “no rush” to lower rates.
Economists’ median forecast anticipates a 2.6% annual increase in the overall CPI for March 2025, a moderation from February’s 2.8% and the smallest inflation figure since October 2024. Monthly price growth is projected to be a mere 0.1%.
The core CPI, excluding volatile food and energy prices, is expected to ease slightly to a 3.0% year-over-year rate, compared to February’s 3.1%. However, the monthly core CPI is predicted to rise to 0.3%, an increase from the previous month’s 0.2% pace.
The 10-year Treasury bond yielded 4.29% and the two-year bond was at 3.85%. The CME Group's FedWatch tool‘s projections show markets pricing a 79.8% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting.
Futures
Change (+/-)
Dow Jones
-1.73%
S&P 500
-2.23%
Nasdaq 100
-2.55%
Russell 2000
-2.92%
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, were lower in premarket on Thursday. The SPY was down 3.04% to $531.92, while the QQQ declined 2.53% to $454.20, according to Benzinga Pro data.
Cues From Last Session:
Fueled by President Trump’s unexpected 90-day tariff pause for non-retaliating nations, U.S. stocks soared on Wednesday, with consumer discretionary, information technology, and communication services sectors leading the charge.
The S&P 500 recorded its largest single-day gain since 2008. Notable individual movers included Apple Inc. (NASDAQ:AAPL) up over 15%, Nvidia Corp. (NASDAQ:NVDA) surging around 19%, and Tesla Inc. (NASDAQ:TSLA) leaping more than 22%, although a subsequent Truth Social post from Trump threatened a 125% tariff hike on Chinese goods.
Additionally, U.S. mortgage application volumes saw a significant 20% weekly increase in early April.
The Dow Jones index surged 2,963 points or 7.87% to 40,608.45, whereas the S&P 500 index skyrocketed 9.52% to 5,456.90. Nasdaq Composite jumped to end 12.16% higher at 17,124.97, and the small-cap gauge, Russell 2000, leaped 8.66% to 1,913.16.
Index
Performance (+/-)
Value
Nasdaq Composite
12.16%
17,124.97
S&P 500
9.52%
5,456.90
Dow Jones
7.87%
40,608.45
Russell 2000
8.66%
1,913.16
Insights From Analysts:
Charlie Bilello from Creative Planning said in an ...
https://www.benzinga.com/news/earnings/25/04/44729572/us-stocks-likely-to-open-lower-ahead-of-march-inflation-release-expert-highlights-fairly-weak-retur
