Wall Street is experiencing a slight bounce back prior to the opening bell on Friday; however, it is still facing a challenging week with continued losses. Investors are grappling with the implications of President Donald Trump’s tariffs on the market and the general economy.
The S&P 500 futures edged higher by 0.2%, while the Dow Jones Industrial Average futures climbed 0.4%. The previous week’s decline of 1.7% was compounded by this week’s 2.5% loss in the S&P 500. Over the last six trading sessions, five have resulted in downturns for the index, following a peak at an all-time high the prior week. The slump largely revolves around concerns regarding future U.S. economic conditions, including fears that tariffs could exacerbate inflation and that government employee layoffs might lead to increased unemployment rates.
The Nasdaq, which is concentrated in technology stocks, dropped 5% this week. Ahead of the market open, it showed only a slight upward movement of less than 0.1%. Chipmaker Nvidia suffered a 1% dip in premarket trading, following a significant 8% fall the previous day despite reporting solid earnings and boosting its forecasts. Investor expectations for Nvidia, a leader in artificial intelligence, had soared. As a result, this week, many chose to sell off and lock in profits.
Super Micro Computer saw a reversal between Thursday and Friday’s premarket hours, giving back gains made earlier in the week. This reversal followed their announcement regarding the filing of mandatory financial reports needed to maintain their Nasdaq listing. Premarket, the company’s shares were down 6.5% after falling 16% on Thursday.
Tesla’s shares slipped slightly, less than 1% early on Friday, continuing a series of losses that reduced the electric car manufacturer’s stock value by 17% this week. Some analysts suggest waning sales in Europe and CEO Elon Musk’s controversial political stances may have alienated potential Tesla customers. Tesla’s market cap fell below $1 trillion earlier in the week.
A key report on consumer spending from the U.S. government is due later Friday morning. It includes the Federal Reserve’s preferred inflation gauge.
Trump announced Thursday that the planned tariffs on imports from Canada and Mexico would proceed on March 4, as intended. Meanwhile, China’s Commerce Ministry released a statement on Friday firmly objecting to Trump’s decision to increase tariffs on Chinese goods to 20%, criticizing it as a breach of global trade regulations and warning that it could burden U.S. companies and consumers, further destabilizing the global supply chain.
In Asia, share prices fell on Friday, with indices in Japan, Hong Kong, and South Korea each dropping over 2%.
Tokyo’s Nikkei 225 index fell 2.9% to 37,155.50, dragged down by falling technology shares. Advantest, a company producing chip testing equipment, fell 8.8%, while Disco Corp. and Tokyo Electron saw declines of 10.3% and 4.5%, respectively.
Hong Kong’s Hang Seng index experienced a 3.3% downturn to 22,941.32, and the Shanghai Composite index decreased by 2% to 3,320.90. In South Korea, the Kospi index dropped by 3.4% to 2,532.78, while Australia’s S&P/ASX 200 saw a 1.2% slide to 8,172.40.
European markets also showed mixed performance by midday, with Germany’s DAX retreating 0.5%, Paris’s CAC 40 declining by 0.4%, while Britain’s FTSE 100 rose by 0.4%.
