US Market Commentary: Futures Rebound Amid Tariff Tensions and Economic Uncertainty

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 Futures Higher

U.S. stock futures rose on Friday, following a tumultuous session where the S&P 500 entered correction territory due to investor concerns over President Trump's tariff plans. By early Friday, S&P 500 futures were up 0.5%, Nasdaq 100 futures rose 0.6%, and Dow futures climbed 0.3%. The previous day's decline was driven by Trump's threat to impose 200% tariffs on European wine and champagne, exacerbating market volatility and uncertainty.

Tesla Warns of Tariff Impact

Tesla expressed concerns about the potential impact of retaliatory tariffs from foreign countries in response to U.S. trade policies. In a letter to the U.S. Trade Representative, Tesla noted that past trade actions have led to increased tariffs on U.S.-exported electric vehicles, making them less competitive globally. This warning comes as Trump considers imposing tariffs on cars and parts from April 2, which could further complicate Tesla's supply chain.

Consumer Sentiment Data Ahead

Markets are awaiting the University of Michigan's preliminary consumer sentiment index for March, which is expected to decline. February's reading hit a seven-month low due to concerns over Trump's tariffs affecting consumer purchasing power. Inflation expectations have also risen, contributing to fears that tariffs could reignite inflationary pressures and impact economic activity.

 Senate Democrats Back Stopgap Bill

Senate Democrats are likely to support a Republican-led stopgap bill to prevent a government shutdown, despite initial opposition. This development adds to the complex political landscape affecting market sentiment, alongside ongoing tariff disputes and economic uncertainty.

 Oil and Gold Prices

Oil prices rose as hopes for a Ukraine ceasefire were tempered by Russian demands for further negotiations. Meanwhile, gold hovered near record highs as a safe-haven asset amid escalating trade tensions. Bitcoin faced a decline as risk appetite waned ahead of a Federal Reserve meeting next week

Stocks experienced a steep decline throughout the trading day on Thursday, more than erasing the gains seen on Wednesday. The major indices fell to their lowest closing levels in six months, with the S&P 500 entering correction territory, now over 10 percent below the record highs reached in February. While the major averages closed off their worst points of the day, they remained firmly in the negative. The Nasdaq dropped 345.44 points, or 2.0 percent, to finish at 17,303.01, while the S&P 500 fell by 77.76 points, or 1.39 percent, ending at 5,521. The S&P 500 is currently testing crucial support levels, which suggests the possibility of a relief rally; the 14-period RSI is below the neutral midpoint, indicating a potential rebound. Key resistance is noted at 5,700, with support located around 5,442.