U.S. stock futures are experiencing declines, with Dow Jones futures down 0.86%, S&P 500 futures falling 1.06%, and Nasdaq futures dropping 1.29%. European markets show mixed results: Germany's DAX index is up 0.47%, while the UK's FTSE 100 is down 0.83%, France's CAC 40 decreases by 0.35%, and the Euro Stoxx 50 falls 0.25%. In the commodities market, WTI crude oil rises 0.74% to $66.80 per barrel, and Brent crude increases 0.63% to $69.74 per barrel.
Economic concerns are mounting in the U.S., as recent data indicates weakening corporate and consumer confidence. This is compounded by tariffs on Canada and Mexico, sparking fears of a potential recession. Former Federal Reserve Chairman Ben Bernanke noted that recent inflation spikes could complicate future price control efforts by central banks, as businesses and consumers adjust their behaviors and expectations.
In corporate news, U.S. President Trump plans to meet with executives from major tech companies, including HP, Intel, IBM, and Qualcomm, to discuss trade policies and manufacturing concerns. HP confirmed its participation, emphasizing the importance of trade policy and U.S. manufacturing.
German fiscal policies have led to significant market reactions, with German bonds experiencing their worst single-day performance since 1990. This has affected markets across the Eurozone and beyond, with U.S. Treasury yields rising by 3 basis points. The European Central Bank is expected to cut rates by 62 basis points by year-end, a decrease from previous expectations.
Barclays analysts suggest that unless U.S. economic data worsens, the euro is unlikely to appreciate significantly against the dollar. They attribute this to weaker U.S. economic data, diminished hopes for further U.S. stimulus, unstable tariff policies, and Germany's fiscal plans.
In pre-market trading, tech stocks like Nvidia and AMD are down over 1%, while Chinese tech giants Alibaba and Pinduoduo see gains of over 2%. JD.com (JD, Financial) notably surged by up to 10% following a strong earnings report for Q4 2024. Conversely, Tesla shares fell 2% after Baird downgraded its outlook. Marvell Technology saw the largest pre-market drop of about 15% due to disappointing earnings and revenue forecasts. CrowdStrike shares fell 1% on lower-than-expected earnings guidance.
