U.S. stock futures bounced back early Thursday after a tech-driven selloff in the previous session, which was fueled by tariffs concerns. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 1.14%, 0.84%, and 0.99%, respectively, at 4:44 a.m. EST, April 17.
On Wednesday, the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) fell by 1.73%, 2.24%, and 3.07%, respectively. This decline was fueled by rising trade tensions and cautious remarks from Federal Reserve Chair Jerome Powell.
The semiconductor sector was particularly hit hard. Nvidia (NVDA) shares tumbled 6.9% after the company disclosed a $5.5 billion charge related to new U.S. export restrictions on its advanced AI chips.
This news had a ripple effect across the industry, with Advanced Micro Devices (AMD), ASML (ASML), and Micron (MU) down 7.4%, 7.1%, and 2.4%, respectively, due to cost concerns and indications of softening demand.
Market sentiment was further hurt by comments from Federal Reserve Chair Jerome Powell. He warned that the tariffs could lead to higher inflation and slower economic growth. Also, he said tariffs are making it more challenging for the central bank to maintain employment and control inflation. Powell’s remarks raised recession fears and uncertainty about the Fed’s future monetary policy path.
Looking ahead, investors are awaiting the Initial Jobless Claims report for the week ended April 12. Also, the Housing Starts and Building Permits data points for March will be released later today.
On the earnings front, several companies are scheduled to report today, such as UnitedHealth (UNH), Charles Schwab (SCHW), American Express (AXP), Netflix (NFLX), and Blackstone (BX).
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.317%. Simultaneously, WTI crude oil futures are trending higher, hovering near $63.06 per barrel as of the last check.
Elsewhere, European indices opened lower on Thursday, as investors looked ahead to the European Central Bank’s (ECB) policy decision. The ECB is expected to announce a quarter-point interest rate cut, marking its third reduction this year.
Asia-Pacific Markets Ended Higher on Thursday
Most of the Asia-Pacific indices were in the green today as investor sentiment was lifted after President Trump highlighted “big progress” in talks aimed at helping Japan avoid higher tariffs.
At the time of writing, Hong Kong’s Hang Seng Index was up 1.37%. Further, Japan’s Nikkei and Topix indices closed higher by 1.35% and 1.29%, respectively. Also, China’s Shanghai Composite Index gained 0.13%, while the Shenzhen Component Index was down 0.16%.
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