US pre-open: Futures lower as Trump's tariffs remain in focus
By Iain Gilbert
Date: Thursday 06 Mar 2025
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Thursday amid ongoing uncertainty regarding Donald Trump's latest tariff announcements.
As of 1255 GMT, Dow Jones futures were down 0.93%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.13% and 1.40% weaker, respectively.
The Dow closed 485.60 points higher on Wednesday after Commerce Secretary Howard Lutnick said that the US might meet Canada and Mexico "in the middle" to "work something out" on tariffs.
Trump announced tariffs on automakers would be delayed by one month, provided their vehicles comply with the US, Mexico and Canada agreement, bolstering hopes that he would grant further concessions. However, stocks headed south in pre-market after these exceptions failed to materialise.
Trade Nation's David Morrison said: "US stock indices are now on a knife-edge. This week, both the S&P and Nasdaq fell back to levels last seen in early November following Trump's election victory
"Trump has called everyone's bluff and has said he's prepared to take some pain to get what he wants. Tariffs may have been the trigger for the latest downturn, but they aren't the only story. Speculation is growing over the possibility that a US recession could start this year. GDP growth forecasts have been downgraded sharply, while inflation remains well above the Fed's 2% target. Recent economic data releases have disappointed, most notably consumer confidence, retail sales and weekly jobless claims."
On the macro front, Challenger Gray and Christmas revealed job cuts had surged to an almost five-year high last month, up from 49,795 in January to 172,017 in February, due to the actions of the Department of Government Efficiency, as well as cancelled government contracts, trade war fears, and bankruptcies.
Still to come, weekly jobless claims data from the Labor Department will be published at 1330 GMT, while January wholesale inventories figures will follow at 1500 GMT.
In the corporate space, lingerie group Victoria's Secret was in the red after revealing Q1 revenues would fall short of analyst expectations, while retailer Macy's posted better-than-expected quarterly figures early on Thursday but issued downbeat sales and profit guidance for FY25 as a whole.
Reporting by Iain Gilbert at Sharecast.com
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