US Stocks Likely To Open Higher Ahead Of FOMC Decision: 'Tariffs Remain The Dominant Market Force' Amid Rising Economic Uncertainty, Says Expert

US Stocks Likely To Open Higher Ahead Of FOMC Decision: 'Tariffs Remain The Dominant Market Force' Amid Rising Economic Uncertainty, Says Expert

  • 19.03.2025 14:33
  • msn.com
  • Keywords: High Tariffs, Market Volatility

U.S. stocks are expected to open higher ahead of the Federal Open Market Committee's interest rate decision. Tariffs remain a dominant market force amid rising economic uncertainty, with experts noting the potential impact of President Trump's trade policies on market sentiment.

SMCI ServicesNVDAsentiment_dissatisfiedPLTRsentiment_dissatisfiedSTNEsentiment_satisfied
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Estimated market influence

Nvidia Corp.

Nvidia Corp.

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Stocks fell due to GTC AI Conference not igniting a rally

Palantir Technologies Inc.

Palantir Technologies Inc.

Negativesentiment_dissatisfied
Analyst rating: Neutral

Dropped about 4%

SPDR S&P 500 ETF Trust

Positivesentiment_satisfied
Analyst rating: N/A

Higher in premarket trading

Invesco QQQ Trust ETF

Positivesentiment_satisfied
Analyst rating: N/A

Advanced 0.35%

Signet Jewelers Ltd.

Positivesentiment_satisfied
Analyst rating: N/A

Up 0.31% ahead of earnings

Williams-Sonoma Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Advanced 1.17%

Five Below Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Rose 1.26%

Healthequity Inc.

Negativesentiment_dissatisfied
Analyst rating: N/A

Slumped 13.09% after downbeat earnings

StoneCo Ltd.

StoneCo Ltd.

Positivesentiment_satisfied
Analyst rating: N/A

Jumped 8.02% after better-than-expected results

Super Micro Computer Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Higher after announcing AI server lineup with Nvidia GPU support

Tesla Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Climbed 2.96% after Robotaxi approval

TEN Holdings Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Surged 33.63% due to stock repurchase program

5E Advanced Materials Inc.

Negativesentiment_dissatisfied
Analyst rating: N/A

Plunged 20.72% after resale announcement

Context

Analysis of Market Developments and Business Insights

Overall Market Movement

  • U.S. stock futures advanced on Wednesday ahead of the FOMC decision.
  • Futures for benchmark indices showed slight gains:
    • Nasdaq 100: +0.16%
    • S&P 500: +0.26%
    • Dow Jones: +0.02%
    • Russell 2000: +0.28%

Economic Data and Trends

  • U.S. import prices rose by 0.4% in February, exceeding expectations.
  • Export prices increased by 0.1%.
  • Industrial production growth was 0.7%, surpassing estimates.

Index Performance (Previous Session)

  • Nasdaq Composite: -1.71% at 17,504.12
  • S&P 500: -1.07% at 5,614.66
  • Dow Jones: -0.62% at 41,581.31
  • Russell 2000: -0.89% at 2,049.94

Key Market Insights

  • Jeremy Siegel (WisdomTree):

    • No rate change expected.
    • Tariffs remain the dominant market force; further escalation could trigger a bear market.
    • Big Tech valuations are high but not bubble-like.

  • Collin Martin (Schwab Center for Financial Research):

    • Fed likely to hold rates in the 4.25%–4.50% range.
    • Rate cuts expected in the second half of the year due to growth concerns.

Stocks in Focus

Positive Movements

  • Signet Jewelers Ltd. (SIG): +0.31% ahead of earnings.
  • Williams-Sonoma Inc. (WSM): +1.17% before earnings report.
  • Five Below Inc. (FIVE): +1.26% ahead of results.
  • StoneCo Ltd. (STNE): +8.02% after strong Q4 performance.
  • Super Micro Computer Inc. (SMCI): +2.01% with AI server lineup announcement.
  • Nvidia Corp. (NVDA): +1.06% during GTC AI conference.
  • Tesla Inc. (TSLA): +2.96% after Robotaxi approval.

Negative Movements

  • Healthequity Inc. (HQY): -13.09% due to downbeat earnings.
  • 5E Advanced Materials Inc. (FEAM): -20.72% following share resale announcement.

Commodities and Global Markets

  • Crude Oil: -$0.63% at $66.33 per barrel.
  • Gold: -$0.12% at $3,030.36 per ounce.
  • Dollar Index: +0.35% at 103.608.

Global Market Performance

  • Asian Markets:

    • China’s CSI 300: Advanced
    • South Korea's Kospi: Advanced
    • Hong Kong's Hang Seng: Advanced
    • India's S&P BSE Sensex: Advanced
    • Japan's Nikkei 225: Declined
    • Australia's ASX 200: Declined

  • European Markets: Mixed performance.

Long-Term and Regulatory Considerations

  • Tariffs remain a critical factor for market direction.
  • Fed’s policy decisions will impact investor sentiment and economic growth.