How are energy investors positioned?
Investing.com-- U.S. stock index futures moved little on Thursday evening as investors grappled with threats of more trade tariffs from President Donald Trump, while recent Federal Reserve commentary also pointed to few upcoming interest rate cuts.
Futures steadied after a negative session on Wall Street, where weak earnings from retail giant Walmart raised some concerns over a cooling economy. Wall Street also faced some profit-taking after the S&P 500 hit a series of record highs this week.
S&P 500 Futures steadied at 6,138.50 points, while Nasdaq 100 Futures rose 0.1% to 22,166.25 points by 19:07 ET (00:07 GMT). Dow Jones Futures rose slightly to 44,293.0 points.
Trump tariff threats dent sentiment
Trump threatened to impose more trade tariffs this week, with his latest round of threats aimed at automobiles, pharmaceuticals, semiconductors and lumber. The president proposed a 25% duty on each sector.
Trump also repeated his threats of reciprocal tariffs on major U.S. trading partners, and said some tariffs could come by as soon as early-April.
His threats ramped up concerns over a renewed global trade war, with investors also uncertain whether the tariffs were a negotiating tactic or a tangible threat.
Thursday marked a full month into Trump’s term, with the president having imposed tariffs on China, along with steel and aluminum imports since taking office.
Walmart, Fed comments pressure Wall St
Walmart Inc (NYSE:WMT) steadied in afterhours trade after losing 6.5% during Thursday’s session, as the retail giant clocked weaker-than-expected earnings for the December quarter.
Losses in Walmart spilled over into other retail stocks, amid concerns that U.S. consumer spending- which is a major driver of the economy- was cooling after a strong run in the past year.
Block Inc (NYSE:XYZ), now known as XYZ, fell 6% in aftermarket trade on softer-than-expected earnings.
Risk appetite was also dented by a string of Fed officials keeping up their warnings that interest rates will remain steady in the near-term. The minutes of the Fed’s January meeting, released earlier this week, showed policymakers remained concerned over sticky inflation and the inflationary impact of Trump’s trade policies.
The S&P 500 fell 0.4% to 6,117.63 points on Thursday, while the NASDAQ Composite fell 0.5% to 19,962.36 points. The Dow Jones Industrial Average slid 1% to 44,176.90 points.