Last Updated: 4:00 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 0.39%, 0.08%, and 0.07%, respectively.
New York Fed President John Williams said on Friday that there is still a lot of uncertainty in the U.S. economy. He expects slower growth this year because of new trade rules, government spending changes, and immigration policies. While the Fed held interest rates steady this week and still expects to lower them twice later this year, it also raised its inflation forecast and lowered its growth outlook, partly because of President Trump’s plans to increase tariffs on more countries.
Williams explained that inflation is still above the Fed’s 2% goal and is moving unpredictably. He said that recent data has been sending mixed signals, and businesses are having a harder time planning due to the uncertain trade environment. While the current interest rate range of 4.25% to 4.5% is a bit tight, he believes it makes sense right now because the job market is still strong and inflation hasn’t come down enough. He also pointed out that uncertainty about future policy decisions has increased in recent months.
Williams also talked about inflation expectations, which have risen since Trump proposed more tariffs. However, he said these expectations are still in a normal range compared to before the pandemic. He added that the Fed will start to slow down how quickly it reduces its Treasury holdings next month — from $25 billion a month to $5 billion. He said this move is just to help markets adjust and won’t change the Fed’s overall approach. Since the announcement, 10-year Treasury yields have fallen as investors expect more demand for these bonds.
First Published: 4:42 AM EST
U.S. stock futures declined slightly on Friday morning after all major indices closed lower yesterday. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.48%, 0.44%, and 0.42%, respectively, at 4:40 a.m. EST, March 21.
In Thursday’s trading session, the S&P 500, the Nasdaq Composite (NDAQ), and the Dow Jones declined 0.2%, 0.3%, and 0.03%, respectively.
Investor concerns stem from the Federal Reserve’s recent policy announcements. While the Fed reaffirmed its forecast for two rate cuts this year, it also raised its inflation outlook and expects slower economic growth. This mix is causing fears of “stagflation,” which means slow growth and rising prices.
Adding to market uncertainty are President Trump’s proposed tariff policies, which Fed Chair Jerome Powell noted could impede progress on inflation.
Meanwhile, the Nasdaq remains in correction territory, down more than 10% from its recent peak.
In after-hours trading, Nike (NKE) and FedEx (FDX) stocks fell after reporting disappointing quarterly results. However, Micron Technology (MU) was in the green after it reported strong Q2 results.
Today, investors await results from some major companies such as Nio (NIO) and Carnival (CCL).
At the time of writing, the U.S. 10-year treasury yield was up, floating near 4.239%. Simultaneously, WTI crude oil futures are trending higher, hovering near $68.32 per barrel as of the last check.
Elsewhere, European indices opened lower today as investors assessed recent monetary policy decisions from central banks in Europe and the U.S.
Asia-Pacific Markets Ended Lower on Friday
Asia-Pacific indices were in the red today as traders reacted to U.S. economic data and were worried over Trump’s tariffs. The upcoming April 2 deadline for reciprocal tariffs has added to global trade fears.
At the same time, Hong Kong’s Hang Seng Index was down 2.19%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 1.29% and 1.76%, respectively. Also, Japan’s Nikkei index was down 0.2%, while the Topix index was up 0.29%.
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