Wall Street had a dismal day with U.S. stock futures trading flat, underscoring concerns about the economic impact of President Trump’s tariffs.
Futures for the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) were steady. Futures for the tech-heavy Nasdaq Composite (NQ=F) rose 0.1%.
Stocks extended their losses on Wednesday as Powell delivered his starkest warning yet about how tariffs could affect the U.S. economy in a speech in Chicago. The Fed chairman said the central bank could face a “daunting situation” given his expectations that tariffs would stoke inflation and slow economic growth.
Powell also poured cold water on hopes that the Fed would immediately cut interest rates in response to tariffs, saying Fed officials would “wait for more clarity on Trump’s trade policy.”
Around the time of Powell’s speech, shares of chip giant Nvidia plunged on news that it would face new U.S. government restrictions on sales to China.
On Thursday, Wall Street’s focus will be on Netflix’s (NFLX) quarterly report, due after the bell. The streaming giant has been a rare bright spot among tech stocks as Trump’s tariffs unnerve tech giants, and investors have high hopes for its performance.
Chipmaker TSMC (TSM) is also due to report earnings on Thursday. The chipmaker is expected to report a profit increase, but like Nvidia, Trump’s trade war will take a heavy toll on its prospects.
Brent crude futures (BZ=F) rose 34 cents, or 0.5%, to $66.19 a barrel by 0029 GMT, while U.S. West Texas Intermediate (CL=F) was at $62.91 a barrel, up 44 cents, or 0.7%.
Both benchmarks rose 2% on Wednesday to their highest level since April 3, putting them on track for their first weekly gain in three weeks. Thursday is the last settlement day before the Good Friday and Easter holidays.
President Donald Trump’s administration on Wednesday imposed new sanctions on Iranian oil exports, including targeting a “teapot” refinery in China, ratcheting up pressure on Tehran amid talks over its escalating nuclear program.
Adding to supply concerns, the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday it had received updated plans from Iraq, Kazakhstan and other countries to further cut output to make up for excess production.
