US stock futures edged lower on Friday as Wall Street faced mounting uncertainty over President Trump’s escalating trade war.
Futures for the Dow Jones Industrial Average dropped by 0.2%, while the S&P 500 fell 0.3%, and the Nasdaq Composite slid by 0.5%.
Market Volatility Continues Amid Tariff Tensions
The stock market has experienced significant volatility this week. It began on a positive note, fueled by hopes that President Trump might ease his tariff plans. However, the market quickly turned negative on Wednesday following news of new tariffs on auto imports.
Thursday saw further declines as Wall Street reacted to Trump’s 25% tariffs on foreign cars and more aggressive rhetoric surrounding the trade conflict. The looming deadline of April 2, when reciprocal tariffs are set to take effect, has added to market jitters.
Investors Eye Key Inflation Data
On Friday, all eyes will be on the release of February’s Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation. Investors are eager to see how current inflation compares to the Fed’s 2% target.
Despite concerns about rising inflation due to new tariffs, Federal Reserve officials have projected slower economic growth, with Fed Chair Jerome Powell stating that rising prices may be “transitory.”
However, Powell’s reassurances are being overshadowed by the growing trade tensions, and some Fed officials are now expressing uncertainty about the economy’s future, with one policymaker describing the situation as having “zero visibility.”
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