US pre-open: Futures higher as tariffs remain in focus
By Iain Gilbert
Date: Friday 11 Apr 2025
(Sharecast News) - Wall Street futures were cautiously higher ahead of the bell on Friday as Donald Trump's ongoing trade war with China continued to escalate.
As of 1200 BST, Dow Jones futures were up 0.59%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.74% and 0.84% firmer, respectively.
The Dow closed 1,014.79 points lower on Thursday, handing back a chunk of the previous session's record-setting gains.
Tariffs remained in focus prior to the open after Donald Trump paused his country-specific tariffs, instead implementing a universal rate of 10%, with the notable exception of China, which he slapped with a 145% levy.
China then retaliated by raising duties on US products to 125% from 84%. China's finance ministry also stated that even if the US continues to impose higher tariffs, it would "no longer make economic sense" and "become a joke in the history of world economy".
Trade Nation's David Morrison said: "Despite yesterday's sell-off, all the US majors are still on course to post a positive week thanks to the stunning rally on Wednesday. But it's worth bearing in mind the extraordinarily large intra-day swings that the indices have seen throughout the last ten days. So anything can happen. This morning, US stock index futures were firmer in early European trade, before reversing sharply and dropping into the red. They subsequently recovered, setting the stage for another volatile session.
"Investors are keeping a close eye on the bond market where there's still evidence of stress with high yield credit spreads widening dramatically. Last week yields tumbled, and bond prices soared, following President Trump's announcement of reciprocal tariffs. This looked like a 'flight to safety' trade as US Treasuries are viewed as the safest asset available. At the end of last week, the yield on the 10-year Treasury fell to a six-month low of 3.86%, from 4.37% just one week earlier. But yields have soared this week with the 10-year yield trading at 4.43% this morning. Market insiders are still unsure of the reason for this turnaround as the jump in yields was one of the sharpest moves in twenty years. But as yields show signs of settling at higher levels, it looks as if the market is primed for higher inflation thanks to tariffs, rather than slowing economic growth. In addition, the prevailing view is that it was these bond market moves which persuaded President Trump to row back on his extensive tariff measures."
On the data front, March's producer price index will be published at 1330 BST, while the University of Michigan's consumer confidence index will follow at 1500 BST.
In the corporate space, some of the biggest names in banking were due to report on Friday, with Morgan Stanley, Wells Fargo, JPMorgan Chase and BlackRock all set to publish their latest quarterly numbers.
Reporting by Iain Gilbert at Sharecast.com
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