US stock futures retreat; trade tariffs, employment data in focus

Investing.com-- U.S. stock index futures fell Thursday, handing back some of the previous session’s gains amid trade tariffs uncertainty ahead of the release of key employment data.

At 05:35 ET (10:35 GMT), Dow Jones Futures were 350 points, or 0.8%, lower, S&P 500 Futures were down 58 points, or 1%, and Nasdaq 100 Futures dropped 245 points, or 1.2%.

The Dow Jones Industrial Average closed 1.1% higher on Wednesday, ending a two-day losing streak. The S&P 500 also advanced by 1.1%, while the NASDAQ Composite climbed 1.5%. All three indexes are still down more than 1% week to date even after these gains.

Trump defers auto tariffs

The White House announced on Wednesday a one-month exemption from the newly imposed 25% tariffs on vehicle imports from Mexico and Canada, offering temporary relief to U.S. automakers. 

This exemption allows manufacturers additional time to adjust their supply chains and explore long-term solutions, mitigating immediate financial pressures.

Both neighboring countries are integral to the North American supply chain, with numerous parts and vehicles crossing borders multiple times during production. The United States-Mexico-Canada Agreement (USMCA) underscores this relationship, setting content rules that many vehicles already comply with, and ensuring duty-free access.

Meanwhile, Bloomberg News reported that Trump is considering exempting certain agricultural products from the tariffs imposed on Canada and Mexico.

These developments suggest the administration may be open to negotiations for lasting tariff solutions, however they have also added to the general uncertainty impacting U.S. companies as they attempt to plan for the future. 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Key jobs data due

Additionally, data on Wednesday showed that while the U.S. services sector experienced unexpected growth in February, input prices also increased, exacerbated by new tariffs imposed by President Trump’s administration.

These tariffs, coupled with rising raw material costs at factories, suggest inflation may increase in the coming months. 

Investors are now keenly awaiting Friday’s employment report, to gauge the health of the U.S. economy, and the Federal Reserve’s future interest rate trajectory.

Ahead of this, Thursday sees the release of the weekly initial jobless claims data, a day after the release of weaker-than-expected private payrolls data.

More earnings in focus

A slate of companies are expected to report quarterly results Thursday, including Macy’s (NYSE:M), Broadcom (NASDAQ:AVGO), Costco Wholesale (NASDAQ:COST) and Hewlett Packard Enterprise (NYSE:HPE).

Additionally, Marvell Technology (NASDAQ:MRVL) slumped premarket after the chipmaker’s quarterly results failed to excite investors hoping for strong artificial intelligence-driven growth.

Crude prices rebound

Oil prices rose on Thursday, bouncing from multi-year lows as traders fretted over a possibly escalating trade war and increasing global supplies.

Brent plunged 6.5% in the previous four sessions, dropping to its lowest since December 2021 on Wednesday, while West Texas Intermediate crude oil fell 5.8% over the same period to its lowest since May 2023.

(Ayushman Ojha contributed to this article.)

Should you invest $2,000 in GM right now?

With GM making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed GM alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including GM, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is GM poised for similar growth? Don't miss the opportunity to find out.

Reveal Undervalued Stocks Now