Wall Street found itself on edge as investors anticipated the forthcoming tariff announcements from President Donald Trump. In early trading on Thursday, market indicators slumped amid worries over the impending data regarding inflation and layoffs, which added to the already volatile environment.
Futures for the S&P 500 fell by 0.4%, while those for the Dow Jones Industrial Average saw a 0.2% decline. The Nasdaq futures also experienced a slide, dropping by 0.5%.
In notable overnight movement, Intel emerged as a significant gainer, experiencing an impressive over 11% increase. This rise followed the announcement of Lip-Bu Tan, a former board member with extensive experience in the semiconductor industry, being appointed as Intel’s new CEO. At 65, Tan steps into his role next week, filling the void left by Pat Gelsinger, who abruptly retired amid a challenging period for the chipmaker.
Conversely, American Eagle Outfitters began the day on a down note, despite surpassing expectations in its fourth-quarter earnings and sales. The company’s cautious outlook, citing an “uncertain consumer and operating landscape” that is dampening demand, led its shares to drop 9% in premarket trading. This cautious guidance has made investors wary.
The overarching uncertainty has defined recent weeks, with markets reacting sharply each time President Trump announces or halts new tariff rounds. Investors and economists, jittery about the economic toll the tariffs might inflict, find themselves rattled. Retaliatory tariffs from the European Union, Canada, and China add to the turmoil.
Even if Trump opts for less severe tariffs, the ongoing cycle of announcements has already started eroding confidence among consumers and businesses, as heightened uncertainty looms. This may result in reduced spending by U.S. households and businesses, potentially slowing down economic growth. Some businesses report having seen changes in customer behavior already.
Later in the day, eyes are on the latest government reports detailing inflation at the wholesale level and new jobless claims from the past week.
In Europe, the trading saw Germany’s DAX down 0.4% by midday, while France’s CAC 40 managed a slight rise of 0.1%. The FTSE 100 in Britain remained unchanged.
In Asia, a broad decline led by Chinese markets unfolded as investors monitored developments in the trade conflict. Hong Kong’s Hang Seng index decreased by 0.6% to 23,462.65, with the Shanghai Composite index slipping 0.4% to 3,358.73.
Japan’s Nikkei 225 ended its session slightly down by 0.1% at 37,790.03, despite initial gains. South Korea’s Kospi edged 0.1% lower to 2,573.64, while Australia’s S&P/ASX 200 dropped 0.5% to 7,749.10.
Elsewhere, Taiwan’s Taiex fell 1.4%, and India’s Sensex saw a marginal decline of 0.1%. In contrast, Bangkok’s SET index gained 0.1%.
