Wall Street indices were poised for a lower opening on Wednesday as investors braced for details of U.S. President Donald Trump’s proposed tariffs, which could have far-reaching effects on the global economy, corporate earnings, and inflation.
ALSO READAhead of Trump’s ‘Liberation Day’ jitters, gold maintains all-time high levels, silver drops
Stock market volatility has surged in recent days, with traders shifting toward safe-haven assets such as gold and government bonds amid uncertainty over the extent of economic damage from escalating trade tensions. Investors are particularly focused on Trump’s “Liberation Day” tariff plans, which will be unveiled during a White House Rose Garden ceremony scheduled for 4 p.m. ET (2000 GMT).
Market Uncertainty and Global Trade Tensions
A Bloomberg report indicated that China has taken measures to restrict its companies from investing in the U.S. as a strategic move to gain leverage in potential trade negotiations with the Trump administration. Trump has previously stated that his reciprocal tariffs aim to align U.S. tariff rates with those of other nations, with some reports suggesting a 20% universal tariff under consideration.
“The uncertainty surrounding the specifics of the tariffs is heavily weighing on investor sentiment, prompting many to cut exposure to U.S. markets,” said Chris Beauchamp, Chief Market Analyst at IG Group. “If the measures turn out to be less severe, we could see some relief in the markets.”
Stock Futures Decline Ahead of Market Open
By 8:23 a.m. ET, futures for major U.S. indices were trading lower:
- S&P 500 e-minis fell 52.5 points (-0.93%)
- Nasdaq 100 e-minis dropped 222.25 points (-1.13%)
- Dow e-minis declined 302 points (-0.71%)
- Russell 2000 futures, which track smaller domestic stocks, fell 1.3%
Tech stocks, which have been particularly vulnerable to this week’s selloff, extended their losses in premarket trading. Nvidia slipped 2%, while Microsoft was down 1.8%. Tesla also dipped 2.7% ahead of its first-quarter delivery report, bringing its year-to-date losses to 33.5%.
S&P 500 and Nasdaq in Correction Territory
U.S. stocks have been under sharp selling pressure this year. Both the S&P 500 and the Nasdaq have dropped 10% from their record highs last month, officially confirming a market correction. The S&P 500 also posted a 4.6% decline in the first quarter, marking its worst three-month performance since July 2022.
» Read More
