US Stocks Likely To Open Lower Following Trump's Tariffs: 'Worse Than The Worst Case Scenario,' Says Analyst
Benzinga (Thu, 03-Apr 6:08 AM)
U.S. stock futures plummeted on Thursday after advancing on Wednesday. Futures of major benchmark indices were down over 2-3% in premarket trading.
Invoking a 1977 law, President Donald Trump declared a trade emergency Wednesday, arguing it was necessary to address the U.S.’s "large and persistent trade deficit." The White House released a fact sheet outlining the new reciprocal tariffs, which Trump justified with the principle, "Treat us like we treat you."
While Canada and Mexico were notably excluded from the tariff program, China, Vietnam, Cambodia, and Sri Lanka face the steepest increases under the new system. Gold prices soared to a fresh record of $3,167.71 per ounce, and investors fled toward safe-haven assets.
The 10-year Treasury bond yielded 4.06% and the two-year bond was at 3.78%. The CME Group's FedWatch tool shows markets pricing in a 76.7% likelihood of the Federal Reserve maintaining current interest rates through its May meeting.
| Futures | Change (+/-) |
| Dow Jones | -2.54% |
| S&P 500 | -3.04% |
| Nasdaq 100 | -3.29% |
| Russell 2000 | -4.29% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, slumped in premarket on Thursday. The SPY was down 3.08% to $547.11, while the QQQ declined 3.36% to $460.17, according to Benzinga Pro data.
Cues From Last Session:
Consumer discretionary, industrials, and financials led a broad S&P 500 rally Wednesday, pushing the Dow Jones over 200 points, despite President Trump’s later announcement of trade tariffs.
Tesla Inc. (NASDAQ:TSLA) surged 5%, even after reporting weak delivery numbers. Contrary to the market’s upward trend, consumer staples closed lower.
Positive economic data, showing stronger-than-expected job growth and rising manufacturing orders, contributed to the day’s gains, though Trump’s trade actions sparked fears of a potential economic downturn.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.87% | 17,601.05 |
| S&P 500 | 0.67% | 5,670.97 |
| Dow Jones | 0.56% | 42,225.32 |
| Russell 2000 | 1.65% | 2,045.36 |
Insights From Analysts:
Senior economist Jeremy Siegel, in his weekly commentary, explained that the public is more willing to endure the near-term friction and economic headwinds from the cuts to inefficient government ...
