Market Recap: US Futures Decline, Tariff Concerns Persist, and Bitcoin Gains

Image Source : Krish Capital Pty Ltd

Index Update

US futures declined on Thursday, reversing gains from the previous session, as investor sentiment remained fragile amid tariff concerns. The Trump administration delayed auto tariffs on Mexico and Canada by a month for USMCA-compliant vehicles, but trade policy uncertainty continued to weigh on markets. Investors await the US jobs report for labor market insights and earnings from Broadcom and Costco after the closing bell.

Market Movers

On Wednesday, the top gainers were Chimerix, Inc. (+69.56%), followed by comScore, Inc (+10.68%). On the contrary               Daktronics, Inc. (-25.4%) and AeroVironment, Inc. (-22.02%) declined the most the same day.

Commodities Update

Brent crude oil futures rebounded toward $70 per barrel after hitting multi-year lows, aided by speculation that the US may remove tariffs on Canadian energy imports. However, bearish sentiment persisted due to concerns over US tariffs, OPEC+’s output increase, and slowing global growth. Additionally, US crude inventories rose more than expected, raising oversupply concerns, while weakening US oil demand was reflected in a drop in waterborne crude imports to a four-year low.

Macro Update

The 10-year US Treasury yield rose above 4.32%, following a rally in European bond yields after Germany announced a 500 billion euro infrastructure fund. Trump granted US automakers a one-month exemption from 25% tariffs on Canada and Mexico and signaled openness to further concessions. However, new US tariffs have sparked retaliatory measures, raising trade war concerns. Investors await Friday’s jobs report after ADP data showed the weakest US private sector job growth in seven months.

Futures Update

US futures fell on Thursday, with S&P 500 and Nasdaq 100 down about 1% and Dow Jones dropping over 300 points. This decline follows a strong rebound in the previous session. Investor sentiment remains fragile due to tariff concerns, though hopes persist for further easing of some levies.

Bitcoin traded at $91,324 on Thursday, up 0.85% from the previous session. It gained 5.33% over the past four weeks and 35.61% over the last year.

Stocks rebounded on Wednesday, recovering from early losses to close strong. The major indexes regained some ground, with the Nasdaq rising by 267.57 points (1.5%) to 18,552.73, and the S&P 500 increasing by 64.48 points (1.1%) to 5,842.62. Despite this recovery, there are indications of potential resistance in the near term, leading to a possible continuation of consolidation with a bearish trend. The 14-period RSI remains below the midpoint, reflecting a negative bias. Key resistance is at 5,950, with support around 5,600.