U.S. stock index futures were relatively unchanged on Thursday evening as investors weighed the threat of additional trade tariffs from President Donald Trump. This came amidst recent commentary from the Federal Reserve that suggested no significant interest rate cuts were expected in the near term.
The flat futures trading followed a negative session on Wall Street, where disappointing earnings from Walmart, the retail giant, raised concerns about a potential slowdown in the economy. Wall Street also experienced some profit-taking after the S&P 500 reached a series of record highs earlier in the week.
S&P 500 Futures stood steady at 6,138.50 points.
Nasdaq 100 Futures saw a slight rise of 0.1%, reaching 22,166.25 points at 19:07 ET (00:07 GMT).
Dow Jones Futures inched up slightly to 44,293.0 points.
Trump’s Tariff Threats Weigh on Market Sentiment
President Trump raised concerns among investors by threatening to impose more trade tariffs. His latest round of threats targeted key sectors, including automobiles, pharmaceuticals, semiconductors, and lumber, with a proposed 25% duty on each of these industries.
Additionally, Trump reiterated his warnings about reciprocal tariffs on major U.S. trading partners, suggesting that some tariffs could come into effect as early as April.
These developments fueled anxiety over the possibility of a renewed global trade war, leaving investors uncertain about whether the tariff threats were a serious move or merely part of negotiation tactics.
Thursday marked one month since Trump’s term began, during which he had already imposed tariffs on China and additional tariffs on steel and aluminum imports.
Walmart Earnings Weigh on Retail Sector
Walmart Inc. (NYSE: WMT) reported weaker-than-expected earnings for the December quarter, triggering a 6.5% decline in its stock during Thursday’s trading session. The disappointing results prompted concerns about a slowdown in U.S. consumer spending, a key driver of the economy, which had been robust over the past year.
The negative sentiment from Walmart’s performance extended to other retail stocks as well, raising further doubts about the health of consumer spending and the broader retail sector.
Block Inc. (NYSE: XYZ) also faced a decline of 6% in after-hours trading, as it posted softer-than-expected earnings.
Fed Comments Dampening Investor Risk Appetite
Investor sentiment was further dampened by a series of Federal Reserve officials who reiterated their stance that interest rates will remain steady in the short term. The release of the Fed’s January meeting minutes earlier this week revealed that policymakers were still concerned about persistent inflation and the potential inflationary impact of Trump’s trade policies.
The S&P 500 closed 0.4% lower at 6,117.63 points, while the NASDAQ Composite dropped 0.5% to 19,962.36 points. The Dow Jones Industrial Average saw the steepest decline, falling 1% to 44,176.90 points.
Conclusion
U.S. stock futures remained flat amid concerns over President Trump’s proposed trade tariffs and weak earnings reports from major companies like Walmart. While trade tensions are causing uncertainty about the global economic outlook, the Federal Reserve’s comments about steady interest rates are adding pressure on the markets. With a mixed economic outlook and an uncertain retail sector, investors will be watching closely to see how the situation develops in the coming weeks.
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