US stock index futures were slightly higher this morning. This followed on from yesterday’s choppy session across Wall Street which brought a mixed close for the US majors. The Dow, S&P 500 and Russell 2000 made modest gains, while the tech-heavy NASDAQ closed a touch lower.
Source: TN Trader
Overall, the ‘scores on the doors’ reflected a day where the market direction was unclear, while sentiment was mixed. Perhaps this is a good indication that investors are cautious ahead of a busy week for earnings and economic data releases, with the focus on the labour market.
The earnings season picks up pace today, with General Motors, Pfizer, Visa, Coca-Cola and Spotify amongst the majors reporting. Then the spotlight will shift to big-name tech with results from Microsoft and Meta Platforms due tomorrow, with Apple and Amazon on Wednesday.
Data-wise, it is a big week for US employment. Today sees the release of JOLTS Job Openings, with the ADP Payrolls tomorrow, weekly Jobless Claims on Thursday, rounded off with the official Non-Farm Payroll number on Friday.
There’s also Consumer Confidence data this afternoon, while tomorrow also sees Advance GDP for the first quarter, along with Core PCE, the Fed’s preferred inflation measure. US stock indices are having a better end to the month when compared to the first half.
The slump in equities which followed President Trump’s announcement of reciprocal tariffs on ‘Liberation Day’ 2nd April, may be remembered for some time, at least until there’s some form of resolution. But, as happened with tariffs during Mr Trump’s first term as President, his tariff threats have already been watered down to some extent.
Trump’s various rollbacks have led to a resurgence in risk appetite which has helped to lift all the US majors off very oversold levels. In fact, both the NASDAQ and S&P 500 are back within sight of where they were before the full extent of the ‘Liberation Day’ tariffs were known. For now, risk appetite remains intact, but markets still feel a touch fragile.
In Washington DC, Treasury Secretary Bessent stated China is ‘on hold’ for now as the US continues tariff talks with 15 to 17 other trading partners. The onus, Bessent said, is on Beijing to take the next step.
Overnight, the US also confirmed that auto tariffs will not extend to steel and aluminium, calming some sector-specific concerns.
