Last Updated: 4:05 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 2.49%, 2.13%, and 1.65%, respectively.
Earlier today, the University of Michigan’s consumer sentiment survey revealed a significant decline in March to its lowest level since November 2022. In fact, the index dropped to 57.9, which was well short of economists’ expectations of 63. This decrease demonstrates the growing concerns among Americans about President Donald Trump’s tariff policies and rising prices.
In addition, inflation expectations soared in March, with one-year inflation expectations jumping to 4.9% from 4.3% in the previous month. Also, long-term inflation expectations climbed to 3.9% – the highest level since 1991. Like consumer sentiment, the jump in inflation expectations is linked to uncertainties about economic policies, which makes it difficult for them to plan ahead.
The survey also showed that expectations for personal finances, labor markets, and business conditions all deteriorated in March. This pessimism has also led to volatility in the markets, which is being driven by the “on-again, off-again” narrative surrounding tariffs, according to Guggenheim Partners’ CIO Anne Walsh. As a result, a clear path forward for stocks is unlikely until this uncertainty is resolved.
First Published: 4:30 AM EST
U.S. stock futures moved higher on early Friday following yesterday’s slump due to the threat of new tariffs by President Donald Trump. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.87%, 0.43%, and 0.62%, respectively, at 4:30 a.m. EST, March 14.
On Thursday, the S&P 500 and the Nasdaq Composite declined 1.39% and 1.96%, respectively, while the Dow Jones Industrial Average fell 1.3% amid concerns over tariffs. With yesterday’s decline, the S&P 500 is down more than 10% from its last month’s record levels, bringing the benchmark into correction territory.
On his Truth Social platform, Trump threatened 200% tariffs on all alcoholic products imported from countries in the European Union in retaliation to the bloc’s 50% tariff on whiskey. The trade wars sparked by tariffs overshadowed the softer-than-anticipated U.S. inflation reading for February.
Stocks trending in Thursday’s after-hours included Ulta Beauty (ULTA) and DocuSign (DOCU). Ulta gained on better-than-expected fourth-quarter results. Electronics signature software company DocuSign also impressed investors with upbeat Q4 results.
Coming to key economic releases, investors await Consumer Sentiment data as it will reflect the impact of ongoing challenges and tariffs on consumers’ confidence.
On the earnings front, traders’ focus will be on the fourth-quarter results of Chinese electric vehicle maker Li Auto (LI). Analysts’ expectations are high as the company delivered strong delivery numbers despite ongoing challenges.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.285%. Simultaneously, WTI crude oil futures are trending higher, hovering near $67.31 per barrel as of the last check.
Elsewhere, European indices opened higher today even as tariffs and retaliatory measures continue to be in focus.
Asia-Pacific Markets Ended Higher on Friday
Asia-Pacific indices closed higher on Friday despite the fear around tariffs. Hong Kong’s Hang Seng index was up 2.1%.
Further, China’s Shanghai Composite and Shenzhen Component indices rose 1.81% and 2.3%, respectively.
Also, Japan’s Nikkei index closed higher by 0.72% while the Topix index increased 0.65%.
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