U.S. stocks opened lower on Friday after futures rose and then fell amid market reaction to earnings reports, tariffs and new economic data release.
The S&P 500 was down 0.44%, while the Nasdaq fell 0.2% after the opening bell. However, buyers swooped in, pushing major indices in the green. If the past few days are any indication, it is completely unclear where markets will trade throughout the day.
As a week of notable volatility inches toward a close, the Dow Jones Industrial Average shed nearly 400 points as it trimmed further gains recorded in mid-week. The fresh declines on Wall Street comes as China raised tariffs on U.S. imports to 125%, compared to the 145% President Donald Trump has imposed on China.
However, Beijing has indicated it won’t be hiking duties beyond the 125%, with thesee set to go into effect on Saturday, April 12, 2025. It’s investor reaction to this and bank earnings that saw futures tied to U.S. stocks rise, Citi chief investment officer of wealth Kate Moore told CNBC’s Squawk Box.
Stocks are feeling the tariffs pinch despite positive earnings season kick off, with leading Wall Street banks releasing first quarter earnings reports.
JPMorgan, Wells Fargo, and BlackRock all reported before markets opened, showing profits. For instance, JPM reported a net income of $14.6 billion and earnings per share of $5.07 in Q1, according to its release.
Notably, the stocks JPMorgan, Wells Fargo, Morgan Stanley and BlackRock recorded premarket gains.
As well as earnings reports, the market also has to digest the producer price index data for March, which showed a slight drop from February’s. Per the data, U.S. March PPI fell 0.4% month-over-month, with this the economic metric’s largest drop since October 2023.
PPI was expected to rise 0.2%. Meanwhile, U.S. PPI nudged 2.7% year-over-year in March, below the consensus expectation of 3.3% and the prior 3.2%.
The data comes out a day after consumer price index data released on Thursday. Despite signaling a month on month drop to 2.4%, the market largely ignored it as tariffs jitters dominated sentiment.
While stocks have fallen amid the tariffs whiplash seen in the week, gains notched still see the S&P 500 poised for a green weekly candle. Most of the gains came on Wednesday as risk assets skyrocketed on Trump’s initial 90-day tariffs pause.
But uncertainty isn’t likely to fade fast unless there’s a major catalyst. With the benchmark 10-year Treasury yield rising to above 4.41% as the dollar index dumps, investors have poured into gold for safe haven. The precious metal has spiked to a new all-time high above $3,200.
