Last Updated: 4:36 PM EST
Stock indices finished today’s trading session in the red after President Trump threatened to impose a 200% tariff on all EU-imported alcoholic products. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.89%, 1.39%, and 1.3%, respectively.
However, the U.S. economy did receive some good news on Thursday. First off, the Producer Price Index (PPI) fell 0.1% in February compared to expectations of a 0.3% increase. This slowdown in wholesale inflation follows a cooler-than-expected Consumer Price Index (CPI) report earlier this month. The PPI data suggests that inflation pressures may be easing and giving the Federal Reserve policymakers some breathing room.
Separately, the Labor Department reported a drop in initial jobless claims for the week ended March 8. Claims fell by 2,000 to 220,000, beating expectations of 226,000. This suggests that the labor market remains strong despite concerns about the impact of tariffs and a potential recession. Continuing claims also fell, dropping to 1.87 million, below the expected 1.9 million.
Interestingly, today’s suggest that the economy is stable and the job market is strong. However, the ongoing tariff drama and recession fears continue to weigh on financial markets. As a result, the Federal Reserve will continue to closely watch these metrics in order to decide how it will react at the next meeting.
First Published: 5:06 AM EST
U.S. stock futures fell early Thursday, after yesterday’s positive session on a cooler-than-expected inflation report. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.83%, 0.41%, and 0.58%, respectively, at 4:52 a.m. EST, March 13.
Wednesday’s regular trading session witnessed a strong rebound, with the S&P 500 and the Nasdaq Composite up 0.49% and 1.22%, respectively, driven by a surge in Nvidia (NVDA) and Palantir Technologies (PLTR). However, the Dow Jones declined 0.2%.
The release of February’s consumer price index came in slightly softer than expected, and provided relief to investors concerned about inflation. However, concerns remain about the potential impact of President Trump’s tariffs on steel and aluminum, as well as retaliatory tariffs from Canada.
In after-market action, Intel (INTC) surged about 10% on news of a new CEO appointment, while Adobe (ADBE) slipped roughly 4% due to weaker-than-expected earnings forecasts.
Looking ahead, investors are awaiting key economic reports such as the Weekly Jobless Claims for the week ended March 8 and the February Producer Price Index. These numbers are important as they may guide the Federal Reserve’s next moves on interest rates.
On the earnings front, several companies such as Dollar General (DG), DocuSign (DOCU), D-Wave Quantum (QBTS), Blink Charging (BLNK), and Ulta Beauty (ULTA) are set to release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.312%. Simultaneously, WTI crude oil futures are trending higher, hovering near $67.82 per barrel as of the last check.
Elsewhere, European indices opened lower today as investors are worried over disruptions in global trade caused by Trump’s tariff policies.
Asia-Pacific Markets Ended Lower on Thursday
Most of the Asia-Pacific indices were in the red today. Relief over cooler U.S. consumer inflation data was offset by concerns about a global trade war as Trump’s steel and aluminum tariffs took effect.
At the same time, Hong Kong’s Hang Seng Index was down 0.58%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 0.39% and 0.99%, respectively. Also, Japan’s Nikkei index fell 0.08%, while the Topix index was up 0.13%.
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