Stock futures declined on Wednesday as investors anticipated the rollout of President Donald Trump’s new tariff measures.
The S&P 500 futures dropped by 0.4%, while Nasdaq-100 futures slipped by the same margin. Dow Jones Industrial Average futures also fell by 121 points, or 0.3%.
The expected tariff announcement has heightened market uncertainty, with concerns over potential economic ramifications. According to the White House, the levies will be applied “immediately” and will begin as a “cap” on duties, meaning affected countries may take steps to reduce their tariff rates over time. Reports indicate that the administration is also considering broad tariffs of around 20% on most imports, though final details remain uncertain.
Wall Street has faced heightened volatility in recent weeks, with the S&P 500 declining in five of the past six weeks. The uncertainty surrounding trade policy has weighed on investor sentiment, though some analysts argue that the market reaction may be overblown.
“I think we’re overpriced to the downside here,” said Jeff Kilburg, CEO of KKM Financial, on CNBC. “The market has room for a 2% to 4% rally once there’s clarity.”
Meanwhile, the ADP employment report for March is also drawing attention, with economists expecting private sector job growth of 120,000, an improvement from February’s 77,000. The Bureau of Labor Statistics recently reported that job openings dropped more than expected in February, further signaling labor market uncertainty.
Beyond the broader market decline, individual stocks have also been impacted. Tesla shares fell nearly 4% pre-market after missing its vehicle delivery estimates for the first quarter. Additionally, concerns over corporate confidence have grown, with surveys indicating declining optimism among CEOs and CFOs regarding the economic outlook.
Globally, financial markets remain on edge. Asian stocks struggled for direction, with Japan’s Nikkei up 0.25% but South Korea’s KOSPI down 0.6%. European markets also indicated a subdued open. Safe-haven assets like gold have remained in demand, with prices holding near record highs.
