Markets Eye Tariff Developments & Key Economic Data
U.S. stock futures are moving higher as traders digest reports on upcoming tariff decisions and look ahead to key economic data this week. As of 04:49 ET, the Dow futures are up 330 points (+0.8%), S&P 500 futures have gained 58 points (+1.0%), and Nasdaq 100 futures are leading with a 245-point jump (+1.2%).
Last week, markets closed green despite tariff concerns, thanks to reports that Trump’s trade stance could be more flexible. The S&P 500, Nasdaq Composite, and Dow Jones all posted gains, while the dollar climbed. However, concerns remain about how these trade policies might impact business activity and economic growth. Semiconductors, materials, and small-cap stocks, which are sensitive to economic slowdowns, lagged on Friday.
Trump’s Tariffs: A More Targeted Approach?
According to Bloomberg News, Trump’s upcoming April 2 “Liberation Day” tariff announcement might be less aggressive than initially feared. While he has threatened broad, sweeping tariffs, insiders suggest the actual measures may be more targeted, possibly excluding certain countries or industries.
However, immediate tariff rate announcements are expected, potentially triggering retaliatory measures from key trade partners. Some analysts warn that, despite being “less harsh,” these tariffs could still have negative economic effects in the near and medium term.
Canadian Snap Election & Rising Tensions
Canada’s new Prime Minister, Mark Carney, has called a snap election for April 28, citing the need for a strong mandate to handle growing trade tensions with the U.S.
Trump’s tariff threats on Canadian steel, aluminum, dairy, and lumber—along with annexation comments—have pushed Ottawa to retaliate. Carney labeled Trump’s trade policies “the most significant crisis of our lifetimes” and vowed to push back while maintaining diplomatic ties.
Key Economic Data This Week
Markets are closely watching the latest U.S. business activity data after recent reports hinted at slowing growth:
- S&P Global Composite PMI (Tuesday): Expected at 51.5 (Feb: 51.6)—showing slight expansion.
- Personal Consumption Expenditures (PCE) Price Index (Friday): A key inflation gauge for the Fed.
- GDP Report (Thursday): Will help assess overall economic health.
Last week, the Fed held rates steady while projecting higher inflation and slowing growth. Powell remains optimistic but acknowledged weak consumer spending trends.
Gold & Market Sentiment
Gold prices are steady after pulling back from record highs. While a weaker dollar is limiting losses, traders remain cautious amid uncertainty over:
- Trump’s April 2 tariff decisions
- Ceasefire talks in Ukraine
- Escalating Middle East tensions
NASDAQ Futures (NQ) Technical Levels
Last week, NQ struggled to hold above 20,000, with a weekly high at 20,165.75. The market remains rangebound, making this week’s reaction to 20,150 critical.
Levels to Watch:
Upside Targets: 20,150 → 20,500 → 20,900
Downside Supports: 19,650 → 19,400 → 19,100
⚠️ Notable Events This Week
📊 Thursday: GDP Report
💰 Friday: PCE Price Index, Michigan Consumer Sentiment
📈 Stay locked into OP Gold chat for updates throughout the trading day!
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