Dow Jones futures rose, alongside S&P 500 and Nasdaq futures, as investors awaited the release of the February jobs report, with some growth concerns hanging over the market. The broader stock market suffered significant losses on Thursday, with the Nasdaq falling below its 200-day moving average amid ongoing worries over Trump’s tariffs. Tesla, Nvidia, and Palantir Technologies saw steep declines, while Broadcom saw a late surge in its stock price after exceeding earnings expectations.
Key Numbers:
- Dow Jones futures rose 0.2%, S&P 500 futures climbed 0.4%, and Nasdaq 100 futures gained 0.55%, mainly buoyed by Broadcom’s performance.
- The 10-year Treasury yield dipped to 4.26%.
- Tesla (TSLA) dropped 5.6% to $263.45, and Palantir (PLTR) fell 10.7% to $80.46.
- Broadcom (AVGO) saw a surge in after-hours trading following strong earnings and an optimistic guidance increase.
Market Overview:
On Thursday, the stock market suffered significant losses, with the Nasdaq falling 2.6% and dropping back below the 200-day moving average, marking its lowest close in five months. The S&P 500 lost 1.8%, undercutting recent lows. Despite these drops, some international markets, like Hong Kong’s Hang Seng and Germany’s DAX, showed resilience, reflecting overseas stimulus efforts.
Trump’s Tariff Strategy:
President Trump announced a pause on tariffs on Canadian and Mexican goods covered by the United States-Mexico-Canada Agreement (USMCA) until April 2. The pause affects about half of Mexican imports and 38% of Canadian goods. However, with tariffs on other countries set to phase in soon, the uncertainty has left investors uneasy. Trump shifted the blame for the market downturn, calling it the fault of “globalist countries and companies,” even as the Dow and other indices slumped.
Stock Highlights:
- Broadcom(AVGO) saw a jump in its stock price after the company reported better-than-expected earnings and guidance.
- Palantir(PLTR) dropped 10.7% after a significant earnings miss, marking a sharp decline below its 50-day moving average.
- Tesla(TSLA) faced a dip of 5.6% amid concerns over a potential first-quarter delivery miss.
- Nvidia(NVDA) fell 5.7% as the company continues to face headwinds in the semiconductor market.
International Markets and Economic Data:
While U.S. stocks struggle, international markets are showing signs of growth, such as the Hang Seng’s three-year high and the DAX’s all-time levels. Investors are also awaiting the February jobs report, which will likely sway Dow futures and Treasury yields. Analysts predict an increase of 160,000 nonfarm payrolls, with the unemployment rate holding steady at 4%.
What Investors Should Do:
In the current market, characterized by volatile daily movements, investors should remain cautious. With the market still in correction mode, preserving financial and mental capital should be the priority. Most investors should wait for a follow-through day, and it’s crucial to update watchlists to focus on stocks showing relative strength. Diversification, especially into international markets, might also provide some resilience, as the U.S. market grapples with headwinds from tariffs and growth concerns.
Earnings Reports:
- Costco Wholesale(COST) saw a slight drop after missing earnings expectations, although its revenue topped estimates.
- Marvell Technology(MRVL) plunged nearly 20% following its earnings report, while BJ’s Wholesale(BJ) saw gains, spiking after a strong earnings report.
- Samsara(IOT) and Hewlett Packard Enterprise(HPE) also experienced declines in after-hours trading.
As the market remains unpredictable, the focus should be on maintaining a long-term perspective and managing risk effectively while staying informed about key economic reports and corporate earnings.
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Stock Futures Edge Higher After Monday’s Sell-Off; Trump’s Tariffs on Mexico and Canada Loom
Options Traders Brace for Market Crash Amid Tariff Concerns and US Recession Fears
Nvidia Shares Plunge 9% Amid Trump’s Tariff Concerns and Market Selloff
