Early on Thursday, S&P 500 futures were flat as the main averages recovered on expectations of tariff concessions from President Donald Trump. Futures linked to the Dow Jones Average and the broad market index saw minimal movement. Nasdaq 100 futures saw a 0.1% decline.
The week has been erratic for stocks thus far. Wednesday saw a recovery for the three leading U.S. indices following consecutive losses. The White House said it would postpone tariffs on manufacturers whose vehicles adhere to the US-Mexico-Canada Agreement by one month. This raised traders’ expectations that Trump would grant further exclusions, raising the key averages. The Dow Jones Industrial Average increased 485.60 points during regular trades or 1.14%. The Nasdaq Composite increased by 1.46%, while the S&P 500 gained 1.12%. Despite these increases, all three indices are still down more than 1% for the week.
Earlier this week, Trump imposed tariffs on China, Canada, and Mexico, three essential trading partners of the United States. Since then, each country has declared preparations for retaliation, which has heightened unease.
According to Mark Hackett, chief market strategist at Nationwide, the pressure this week is widespread, with growth and small caps showing substantial weakness while overseas markets remain in the lead. The ‘three-headed monster’ of economic issues, inflationary pressures, and uncertainty in Washington, D.C., is the primary cause of the precipitous market downturn and collapse in investor sentiment.
Regarding the economy, traders will watch the weekly unemployment claims expected on Thursday. The market may be affected by the findings of Friday’s release of February’s major payrolls report.
On Thursday, several businesses, including Hewlett Packard Enterprise, Macy’s, Broadcom, and Costco Wholesale, are anticipated to release quarterly results. Jurrien Timmer, director of macro at Fidelity, says market breadth is rising despite high levels of consolidation.
“Since the 2022 low, the S&P 500 has gained 78%. In a post on X, Timmer stated, “That’s still below the average, but consistent with previous cycles in which rising rates restrained equity prices.” With 40% of the index outperforming year-over-year (up from 26% in 2023), the narrow leadership has become less narrow.
Take a look at the businesses grabbing the most attention in after-hours trading:
- Marvell Technology – The semiconductor solutions company had a roughly 13% decline in share price. Marvell announced adjusted earnings of 60 cents per share on $1.82 billion in revenue for the fiscal fourth quarter. In contrast, LSEG’s poll of analysts predicted earnings of 59 cents per share on $1.80 billion in revenue. Additionally, the business provided a first-quarter projection that was higher than forecasted.
- Zscaler— The cloud security company’s shares surged 4% due to its impressive quarterly financial results. Zscaler announced adjusted earnings of 78 cents per share on $648 million in revenue for the second quarter of its fiscal year. According to LSEG’s survey of analysts, $636 million in sales and 69 cents per share were anticipated.
- The lingerie shop Victoria’s Secret had a 5% decline. While experts surveyed by LESG predicted $1.39 billion in revenue for the first quarter, Victoria’s Secret said it would make between $1.30 billion and $1.33 billion. Revenue for the fourth quarter, however, exceeded projections.
