Stock futures slipped Wednesday as Wall Street braced for the expected rollout of President Donald Trump’s tariffs. The S&P 500 lost 1%, while the Nasdaq Composite fell 1.3%. Dow Jones Industrial Average futures were down 346 points, or 0.8%.
The anticipated implementation of Trump’s “reciprocal tariffs” has created market volatility. The White House revealed Tuesday that the specific tariff levels were still under discussion, according to a Bloomberg News report citing people familiar with the matter. Treasury Secretary Scott Bessent mentioned on Tuesday that the announced tariffs would serve as a cap, providing countries an opportunity to negotiate and reduce the tariff amounts.
On Tuesday, the Dow finished about 0.4% higher, oscillating between gains and losses, while the S&P 500 ended the day roughly 0.9% higher. The Nasdaq closed marginally lower. The broader market index has been down five out of the past six weeks, underscoring the recent market instability due to tariff uncertainties.
Jeff Kilburg, founder and CEO at KKM Financial, suggested that the market might have the potential for a short-term rally. “I think we’re overpriced to the downside here,” Kilburg told CNBC. “I think the market has the ability to have a little bit of a 2% to 4% rally to really reprieve everyone’s anxiety.”
In economic news, private companies added 155,000 jobs last month, surpassing Dow Jones economists’ forecast of 120,000 additions.
The Bureau of Labor Statistics also reported a drop in job openings, which were fewer than anticipated for February. Corporate confidence appears to be waning as well.
Markets slip ahead of tariff details
According to Apollo chief economist Torsten Slok, surveys indicate declining confidence among CEOs and CFOs regarding the U.S. economy and their own companies. Slok highlighted a CEO Confidence Index showing sentiment at its lowest level in over a decade. With the tariff announcement approaching, the White House had not reached a firm decision on the plans as of Tuesday meetings.
Options under consideration include country-by-country “reciprocal” tariffs and a tiered system. White House press secretary Karoline Leavitt stated that Trump and his advisers were still formulating the new policy, according to NBC News. Stifel’s Analyst Brad Reback cut his price target on ServiceNow from $1,175 to $950 amid uncertainties.
Reback maintained a buy rating but cited concerns that upcoming tariffs could affect consumer purchasing decisions. Despite potential near-term disruptions, he believes ServiceNow is well-positioned for continued growth. Stocks have seen modest gains this week, providing a brief reprieve amid the turbulent start to 2025.
The Dow and S&P 500 have each added close to 1% week to date, while the Nasdaq has risen around 0.7%. Nevertheless, all three major averages remain in the red for the year. Futures were down in Wednesday’s premarket ahead of the anticipated tariff policy updates.
JPMorgan’s head of technical strategy, Jason Hunter, identifies 5,500 as a critical support level for the S&P 500, marking a potential inflection point for a market bounce. The market continues to navigate through uncertainty, but all eyes are on the forthcoming tariff announcements for clearer direction.
Image Credits: Photo by Chris Li on Unsplash
