FX.co ★ US Futures Fluctuate Amid Tariff Concerns

U.S. stock futures experienced fluctuations on Thursday, teetering around the neutral mark as investors processed the latest tariff announcements along with new economic data. The Trump administration declared a 25% tariff on any car not manufactured in the United States, effective from April 2. Furthermore, President Trump cautioned of implementing significantly higher tariffs on the European Union and Canada if they attempted any collective strategies against U.S. trade policies. There is increasing concern that these tariffs may negatively impact the U.S. economy, potentially exacerbating inflation.

In terms of economic numbers, the fourth quarter GDP growth was slightly revised upwards to 2.4% from a previous estimate of 2.3%. Meanwhile, core Personal Consumption Expenditures (PCE) prices rose marginally less than initially anticipated in the fourth quarter, marking a 2.6% increase instead of 2.7%. Initial claims were largely in line with forecasts, remaining consistent with the levels of the past weeks, though the trade goods deficit exceeded expectations.

In the stock market, General Motors saw its shares plummet by over 7% in premarket trading, and Ford shares decreased by 0.4%. Conversely, Tesla gained nearly 0.8%, helped by its substantial manufacturing operations in California and Texas.