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Stock Index Futures Soar on Hope of Targeted U.S. Tariffs

Stock Index Futures Soar on Hope of Targeted U.S. Tariffs

  • 24.03.2025 10:33
  • theglobeandmail.com
  • Keywords: Stock Market, Tariffs

Stock index futures rose as investors hoped U.S. President Trump’s next tariffs would be less severe and more targeted. Futures on the S&P 500 and Nasdaq 100 climbed, with sentiment boosted by reports of potential exemptions and Wall Street’s strong close.

SMCI ProductsSMCIsentiment_satisfiedTSLAsentiment_satisfiedAAPLsentiment_satisfiedBA/PAsentiment_satisfiedMUsentiment_dissatisfiedFDXsentiment_dissatisfiedDLTRsentiment_neutralLULUsentiment_neutralCHWYsentiment_neutralGMEsentiment_neutralXIACYsentiment_satisfiedSURYYsentiment_satisfied

Estimated market influence

Super Micro Computer

Super Micro Computer

Positivesentiment_satisfied
Analyst rating: Buy

JPMorgan upgraded the stock to Neutral from Underweight with a price target of $45.

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Rising more than +5% to lead gainers in the Nasdaq 100

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Advanced nearly +2%

Boeing

Positivesentiment_satisfied
Analyst rating: —

Secured a contract to design and build the U.S.'s next-generation stealth fighter jet

Micron Technology

Micron Technology

Negativesentiment_dissatisfied
Analyst rating: Buy

Slumped more than -8% after offering a weak FQ3 adjusted gross margin forecast

FedEx

FedEx

Negativesentiment_dissatisfied
Analyst rating: Buy

Slid over -6% after cutting its full-year guidance

Dollar Tree

Dollar Tree

Neutralsentiment_neutral
Analyst rating: Buy

Scheduled to release quarterly results this week

KB Home

Neutralsentiment_neutral
Analyst rating: N/A

Scheduled to release quarterly results this week

Lululemon Athletica

Lululemon Athletica

Neutralsentiment_neutral
Analyst rating: Buy

Scheduled to release quarterly results this week

Chewy

Chewy

Neutralsentiment_neutral
Analyst rating: Buy

Scheduled to release quarterly results this week

GameStop

GameStop

Neutralsentiment_neutral
Analyst rating: Strong sell

Scheduled to release quarterly results this week

Bayer AG

Negativesentiment_dissatisfied
Analyst rating: N/A

Slumped over -7% after a U.S. jury ordered the company to pay approximately $2.1 billion

Xiaomi

Xiaomi

Positivesentiment_satisfied
Analyst rating: Buy

Climbed over +4% after raising its car deliveries guidance

Sumitomo Realty & Development

Sumitomo Realty & Development

Positivesentiment_satisfied
Analyst rating: —

Jumped over +10% after Bloomberg reported that Elliott Investment Management had built a sizeable stake in the company

Context

Business Insights and Market Implications Analysis

Key Market Performance

  • S&P 500 E-Mini Futures: Up +0.97%
  • Nasdaq 100 E-Mini Futures: Up +1.14%

Tariff Developments

  • U.S. Tariffs Update: Bloomberg reports suggest the next wave of U.S. tariffs (April 2nd) will be more targeted, contrary to earlier broad measures.
  • Exemptions and Sector Impact: Certain countries or sectors may be exempted, with no additional sector-specific tariffs planned for now.

Stock Performance

Gainers

  • Super Micro Computer (SMCI): +7% after JPMorgan upgrade to Neutral from Underweight.
  • Tesla (TSLA): +5% on gains in the Nasdaq 100.
  • Boeing (BA): +3% following a contract win for designing stealth fighter jets.

Losers

  • Micron Technology (MU): -8% after weak Q3 gross margin forecast.
  • FedEx (FDX): -6% due to reduced guidance.

Federal Reserve and Interest Rates

  • Fed Policy Outlook: Chicago Fed President Goolsbee expects rates to ease if inflation continues to decline.
  • Market Pricing: U.S. rate futures indicate an 85.1% chance of no rate change vs. 14.9% for a 25bp cut at the May meeting.

Economic Data Focus

  • Key Releases This Week: Core PCE inflation, GDP (third estimate), Consumer Confidence Index, and others.
  • Inflation Expectations: ING analysts predict "stubborn" inflation with some elevation.

Central Bank Sentiment

  • U.S. Fed Officials: Raphael Bostic, Michael Barr, Adriana Kugler, John Williams, Neel Kashkari, Tom Barkin will speak this week.
  • Global Markets: Euro Stoxx 50 up +0.22% as investors hope for less aggressive U.S. tariffs.

Bond Market

  • 10-Year Treasury Yield: At 4.281%, up +0.68%.

International Markets

Europe

  • Eurozone PMI Data: Composite PMI at 50.4 (vs. expectation 50.8), Manufacturing PMI at 48.7 (vs. 48.3 expected).

Asia

  • China: Shanghai Composite up +0.15% amid reports of metal reserve additions and Ant Group's AI developments.
  • Japan: Nikkei down -0.18% as investors remain cautious on tariffs.

Corporate News

  • Bayer (BAYn): Slumped -7% after a U.S. jury ordered $2.1 billion payout over Roundup cancer claims.
  • Xiaomi (07.HK): +4% in Hong Kong after raising EV delivery guidance.

Pre-Market Movers

  • Super Micro Computer (SMCI): -2% pre-market after Goldman Sachs downgrade to Sell.
  • Dutch Bros (DBRO): +3% on Morgan Stanley upgrade to Overweight.
  • Azek Company (AZEK): +18% after James Hardie acquisition offer ($8.75B).

Earnings Spotlight

  • Monday, March 24th: KB Home (KBH), Oklo (OKLO), Enerpac Tool Group (EPAC), Intuitive Machines (LUNR), Caledonia Mining (CMCL), SKYX Platforms (SKYX), Intellinetics (INLX), Nexgel (NXGL), Wag! (PET).

Conclusion

  • Market Sentiment: Optimism driven by targeted tariffs and strong equity performance, but risks remain from inflation and geopolitical tensions.
  • Long-Term Implications: Tariff dynamics and Fed policy will shape market trends in the coming months.