2 weeks Ago
franckreporter Listen below or on the go on Apple Podcasts and Spotify Wall Street's gloom expected to persist (0:28), crude oil futures plunge (2:35) and Amazon rolls out new feature (4:15). Transcript The gloomy mood on Wall Street is expected to persist, with stock index futures dropping on Friday as President Donald Trump's latest tariffs continue to spook markets. Investors are also awaiting key labor data.
S&P 500 futures ( SPX ) -0.8%, Nasdaq 100 futures ( US100:IND ) -0.6%, and Dow futures ( INDU ) -0.
9%. The 10-year Treasury yield ( US10Y ) fell 9 basis points to 3.96%.
The 2-year yield ( US2Y ) fell 6 basis points to 3.66%. U.
S. stocks were mauled Thursday, with the S&P 500 closing in a correction as President Donald Trump's reciprocal tariffs stoked fears of a global trade war. The S&P 500 closed at -4.
8%, finishing its worst session since June 2020. The selloff occurred after Trump late Wednesday detailed new tariffs that the U.S.
is enacting on imports. The minimum baseline tariff will be 10%. "The last 24 hours have been truly historic for markets, as the impact of the U.
S. reciprocal tariffs cascaded across different asset classes, with no sign of letting up overnight," Deutsche Bank's Henry Allen said. "In terms of what happens now, the big question is how the U.
S.’s trading partners might retaliate, as that will play a huge role in determining what the overall economic and market impact will be..
. On the back of all this, investors grew increasingly fearful about a potential US recession, with U.S.
equities seeing their sharpest decline in years," Allen added. "For now, US recession risks have risen. Over the longer term, effective tariff rates should fall somewhat.
Rerouting supply chains, shifting demand patterns, and the political and economic pressure on Trump to retreat should reverse some of this damage," UBS' Paul Donovan said. President Donald Trump said he would be open to negotiating with other countries for “phenomenal” offerings, contradicting White House aides who insist the sweeping tariffs are non-negotiable. “If somebody said that we’re going to give you something that’s so phenomenal, as long as they’re giving us something that’s good,” he told reporters aboard Air Force One on Thursday.
Crude oil futures plunged by the most in nearly three years on Thursday, as concerns about weaker demand due to U.S. tariffs were exacerbated by the surprise move from OPEC+ to accelerate the return of withheld production, sending shockwaves across oil markets.
Then, OPEC and its allies unexpectedly said they would add the equivalent of three monthly increases of output back to the market in a single step (411K bbl/day), citing "healthy market fundamentals" and a "positive market outlook," but a striking policy shift after years of supply constraints that had supported crude prices. "The perfect bearish cocktail has been mixed in Washington and in Vienna," PVM Oil Associates analyst Tamas Varga said in response to the twin moves. "The reciprocal tariffs on virtually every salient U.
S. trading partner justifiably raise the fears of recession and possibly stagflation. Economic and oil demand growth is adversely impacted.
" The OPEC+ decision to bring back more production than expected adds downside risk to crude prices, while the negative effect on global growth from U.S. tariffs could curb oil demand growth by 250K-500K bbl/day, “close to half of our 2025 growth forecast of 1.
1M bbl/day at the upper end," UBS analysts wrote . "We see the combination of this leading to increased downside risk for crude oil prices towards the lower end of the $55-$75/bbl WTI range." Citi Research offered a more upbeat view, maintaining its Q2 Brent price forecast of $68/bbl, saying "These withering trade tariff developments arrive at a time when the macroeconomic momentum was already softening.
.. Yet sanctions on Iranian, Venezuelan, and eventually Russian oil purchases act to tighten supply, thereby offsetting impacts from goods tariffs.
" Further weighing on market sentiment, data from the U.S. Energy Information Administration showed U.
S. crude inventories rose by a surprisingly large 6.2M barrels last week, compared to expectations for a substantial decline.
Amazon (NASDAQ: AMZN ) rolled out a new beta feature called "Buy for Me," which allows users to purchase items from third-party websites directly through the Amazon Shopping app. "We will begin testing with a limited number of brand stores and products, with plans to roll out to more customers and incorporate more brand stores and products based on feedback," the company said in a statement. Traders will keep their eyes on the important March jobs report slated to come before the bell.
Economists expect job additions to fall to 135K from 151K in February and the unemployment rate to stay level at 4.1%..
_0.jpg?itok=yAIF6nFK)
