In This Article:
Investors gear up for another volatile trading day fueled by tariffs from US President Trump.
US stock futures (ES=F, NQ=F, YM=F) are in the red ahead of the opening bell.
Trump's 104% tariffs on imports from China take effect. China has retaliated with an 84% tariff rate on all imports from the US, effective on Thursday.
Delta Air Lines (DAL) pulled its full-year outlook, citing uncertainty fueled by the global trade war, while Walmart (WMT) is maintaining its forecast for the year.
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First up, US stock futures falling this morning after the trade war continues to escalate. Stocks closing lower for a fourth day amid trade-driven volatility, with the S&P 500 now nearing a bear market, down 19% from its recent record high. Meantime, treasuries tumbling as the trade war sparks fears about the haven status of the US government's debt. Traders also attributing the bond market moves to dislocations in a popular hedge fund trade, and speculation of foreign selling leading to the recent spike in bond yields.
Plus, China is retaliating against the US as President Trump's reciprocal tariffs went into effect. China said it would raise the tariff on US goods to 84% from 34% effective tomorrow. The moves follow Trump's latest levies that went into force, taking the cumulative rate announced this year on China to a total of 104%. Meanwhile, President Trump said the US was planning to announce a major tariff on pharmaceuticals soon, sending shares of pharma companies lower.
And Delta scrapping its full-year financial guidance as the trade wars creates uncertainty for the airline industry. The company announcing it will update its outlook later in the year as visibility improves. Meantime, Walmart maintaining its sales forecast for the year despite tariff pressure. The announcement suggests the world's largest retailer is in a good position to navigate a historic period of uncertainty.
The retailer also keeping its outlook for operating income for the year, but widening the range for the current quarter because of several factors, including tariffs.