Noor Trends News, Technical Analysis, Educational Tools and Recommendations
U.S. stock index futures edged lower on Thursday, retreating slightly from the prior session’s strong gains as investors absorbed the latest tariff announcements from President Donald Trump.
Stock Market Movement
At 05:50 ET (09:50 GMT), Dow Jones Futures were down 105 points, or 0.2%, S&P 500 Futures fell 12 points, or 0.2%, and Nasdaq 100 Futures dropped 33 points, or 0.1%.
On the prior day, Wall Street had gained, with the tech-heavy Nasdaq Composite hitting a record closing high after Nvidia (NASDAQ:NVDA), an artificial intelligence leader, became the first company to briefly achieve a market value of $4 trillion.
Trump’s Tariff Jitters Impacting Markets
Despite the rally in stocks, Trump’s latest tariff actions remain a point of concern. On Wednesday, Trump sent out additional letters outlining tariffs against various countries, with Brazil being one of the most affected.
Trump announced that he planned to impose a hefty 50% tariff on all imports from Brazil, effective August 1. This decision followed a disagreement between Trump and Brazilian President Luiz Inacio Lula da Silva, who decried the tariff and vowed to retaliate, leading to concerns that the U.S. could be on the brink of a trade war with Brazil.
In addition, Trump followed through on his earlier threat of imposing a 50% tariff on copper imports, which will also come into effect from August 1. These tariff moves add to the market’s unease, especially amid ongoing trade uncertainties.
Focus on Economic Data and Fed Speakers
As the day progresses, investors will closely monitor key economic data, particularly weekly jobless claims, which will provide further insight into the strength of the U.S. labor market. Additionally, Federal Reserve members Christopher Waller and Mary Daly are set to speak, providing potential clarity on future interest rate decisions.
Federal Reserve’s Policy Outlook
The minutes from the Fed’s June meeting, released on Wednesday, showed that only a few members of the Federal Reserve were considering cutting rates in the short term. The majority of members still favor a wait-and-see approach, particularly due to concerns that tariffs could lead to inflationary pressures and hinder economic growth.
Trump has continued to urge the Fed to lower interest rates, warning that the U.S. economy could suffer if rates aren’t reduced soon.
Corporate News: Kellogg and Ferrero Deal
In corporate news, WK Kellogg (NYSE:KLG) is drawing attention after reports emerged that the family-owned Italian candy company Ferrero is nearing a $3 billion deal to acquire the cereal maker. Ferrero, known for its brands like Ferrero Rocher and Nutella, could finalize the deal with Kellogg’s within days, provided there are no last-minute issues in negotiations.
Such a deal would bring together Ferrero and WK Kellogg, famous for breakfast cereals such as Froot Loops and Rice Krispies, marking a major shift in the global food sector.
Markets remain in a state of caution as tariff-related uncertainty continues to weigh on investor sentiment, with significant attention on the upcoming economic data and the Federal Reserve’s stance on interest rates. The uncertainty surrounding Trump’s trade actions, along with the potential for a major corporate deal, are likely to keep investors on edge in the short term.
