Concerns about the economic damage from US tariffs and AI spending by tech firms sent Wall Street into a tailspin in the first three months of the year.
The benchmark S&P 500 finished the quarter 4.6% lower, its worst three-month performance since July 2022.
US President Donald Trump is set to announce “reciprocal tariffs” to bring US tariffs to other countries’ levels on April 2.
He said on Sunday the levies will include all countries but specific details were scant.
White House aides have drafted a proposal to impose tariffs of around 20% on most imports to the US, the Washington Post reported.
By 6:13am, S&P 500 E-minis fell 12.5 points, or 0.22%. Nasdaq 100 E-minis dropped 26.25 points, or 0.14%, and Dow E-minis were down 125 points, or 0.3%.
The announcement will come at 3pm tomorrow, US treasury secretary Scott Bessent told Fox News yesterday.
Investors have been seeking the safety of US government bonds and gold in recent weeks while dumping US stocks, particularly high-flying tech shares, on worries tariffs will hurt economic growth and stimulate inflationary pressures.
Trump has already implemented levies on imported aluminum and steel, along with increased tariffs on goods from China. Higher duties on cars will take effect on Thursday.
Manufacturing activity surveys for March and JOLTS job openings data later in the day could offer fresh insights on the impact of tariffs on the US economy and the Federal Reserve (Fed)’s monetary policy path.
New York Fed president John Williams acknowledged yesterday there are risks inflation could once again heat up, while Richmond Fed president Thomas Barkin said he is nervous the Trump administration’s tariffs will push up prices and hurt the job market.
Among single stocks, Goldman Sachs yesterday raised the probability of a US recession to 35% from 20% and said it expects more US interest rate cuts this year.
Among single stocks, Johnson & Johnson fell 3% in premarket trading after a US bankruptcy judge rejected the company’s US$10 billion proposal to end tens of thousands of lawsuits alleging its baby powder and other talc products cause ovarian cancer.
PVH jumped about 17% after the apparel maker’s annual earnings forecast beat analysts’ estimates.
Tesla’s shares rose 3.7% ahead of its first-quarter vehicle deliveries report tomorrow.
Its shares were down about 36% in the three months to March 31.
The electric carmaker posted its lowest first-quarterly sales figures in France and Sweden since 2021, data showed.