U.S. stock futures saw a slight decline at the start of Wednesday’s session, as investors remained cautious ahead of the anticipated announcement of new tariffs on April 2. Despite modest gains recorded in the previous session—supported by signs of a potential softening in trade measures—continued weakness in economic data, particularly the decline in consumer confidence, added to investors’ concerns.
Comments by U.S. President Donald Trump regarding plans to limit tariff exemptions, while leaving the door open to targeting key sectors such as pharmaceuticals, automobiles, and technology, have added to the market’s uncertainty. Although there have been attempts to ease tensions, the lack of clear details has heightened investor anxiety, especially as the measures may involve around 15 major trading partners.
Today, market participants are focused on earnings from companies in key consumer and service sectors, such as Chewy, Dollar Tree, Paychex, and Cintas. These reports are expected to provide insights into U.S. consumer behavior and employment trends. Weak results from retailers targeting low-income consumers, or signs of labor market slowdown, could serve as concrete evidence that inflationary pressures are beginning to affect the real economy, beyond theoretical data.
Oil prices rose due to a larger-than-expected drop in U.S. crude inventories, rekindling concerns over energy costs. However, geopolitical developments—most notably the maritime ceasefire agreement between Russia and Ukraine, along with discussions around partially easing sanctions on Moscow—helped limit the upside. Meanwhile, slower-than-expected inflation in the U.K. offered some breathing room for monetary policymakers and eased pressure for further interest rate hikes.
