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 10:25
  • theglobeandmail.com
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Stock index futures rose as investors hoped U.S. tariffs would be less severe than feared. Markets gained after reports suggested targeted measures instead of broader ones, with tech stocks leading gains. Focus remains on upcoming economic data for further cues.

SMCI ProductsSMCIsentiment_satisfiedTSLAsentiment_satisfiedAAPLsentiment_satisfiedBA/PAsentiment_satisfiedMUsentiment_dissatisfiedFDXsentiment_dissatisfiedDLTRsentiment_neutralLULUsentiment_neutralCHWYsentiment_neutralGMEsentiment_neutralMS/PLsentiment_neutralXIACYsentiment_satisfiedSURYYsentiment_satisfied
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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, leading to an increase in stock price by over +7%

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Rising more than +5% on the Nasdaq 100 due to positive market sentiment and potential targeted tariffs

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Advanced nearly +2% as part of the broader market rally

Boeing

Positivesentiment_satisfied
Analyst rating: —

Secured a contract to design and build the U.S.'s next-generation stealth fighter jet, leading to a rise in stock price by over +3%

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

Stock slid over -6% following the reduction of its full-year guidance

Dollar Tree

Dollar Tree

Neutralsentiment_neutral
Analyst rating: Buy

Notably mentioned as a company scheduled to release quarterly results this week, but no specific impact noted

KB Home

Neutralsentiment_neutral
Analyst rating: N/A

Scheduled to release quarterly results this week, with no specific impact noted

Lululemon Athletica

Lululemon Athletica

Neutralsentiment_neutral
Analyst rating: Buy

Notably mentioned as a company scheduled to release quarterly results this week, but no specific impact noted

Chewy

Chewy

Neutralsentiment_neutral
Analyst rating: Buy

Scheduled to release quarterly results this week, with no specific impact noted

GameStop

GameStop

Neutralsentiment_neutral
Analyst rating: Strong sell

Meme stock favorite mentioned as a company scheduled to release quarterly results this week, but no specific impact noted

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 due to allegations related to Roundup weed killer

Ant Group

Positivesentiment_satisfied
Analyst rating: N/A

Developed AI model training techniques using Chinese-made semiconductors, potentially reducing costs by 20%

Morgan Stanley

Neutralsentiment_neutral
Analyst rating: —

Boosted China’s 2025 GDP growth forecast by 50 basis points to 4.5%, but no direct financial impact on the company mentioned

Xiaomi

Xiaomi

Positivesentiment_satisfied
Analyst rating: Buy

Climbed over +4% in Hong Kong 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 built a sizeable stake in the company

Context

Analysis of Stock Index Futures Surge and Market Implications

Key Facts and Data Points

  • Stock Index Futures Performance:

    • June S&P 500 E-Mini futures: +0.97%
    • June Nasdaq 100 E-Mini futures: +1.14%

  • U.S. Tariffs Update:

    • Next round of tariffs due on April 2nd, expected to be more targeted.
    • Possible exemptions for certain countries or sectors, contrary to earlier broad measures.

  • Market Sentiment:

    • Investors optimistic as fears of severe tariffs ease.
    • Focus on key economic data releases this week, including PCE inflation and GDP estimates.

Sector Performance

  • Gainers:

    • Super Micro Computer: +7% (JPMorgan upgraded to Neutral with $45 price target).
    • Tesla: +5% (led Nasdaq gainers).
    • Boeing: +3% (contract for stealth fighter jet).

  • Losers:

    • Micron Technology: -8% (weak Q3 gross margin forecast).
    • FedEx: -6% (reduced full-year guidance).

Federal Reserve and Interest Rates

  • Fed Comments:

    • Chicago Fed President Goolsbee expects rates to decrease if inflation eases.
    • New York Fed President Williams supports current monetary policy stance.

  • Market Rate Expectations:

    • 85.1% chance of no rate change in May.
    • 14.9% chance of a 25 basis point cut.

Bond Market

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

International Markets

  • Euro Stoxx 50 Index: +0.22% (hope for less aggressive tariffs).

    • Mining stocks led gains due to higher copper prices and JPMorgan upgrade.

  • Asian Markets:

    • China’s Shanghai Composite: +0.15% (hopes for metal reserves additions, Ant Group AI developments).
    • Japan’s Nikkei 225: -0.18% (tariff concerns, weak PMI data).

Pre-Market Movers

  • Gainers:

    • Dutch Bros: +3% (Morgan Stanley upgrade).
    • Azek Company: +18% (acquisition by James Hardie Industries).

  • Losers:

    • Super Micro Computer: -2% (Goldman Sachs downgrade).

Earnings Spotlight

  • Companies to watch this week include KB Home, Oklo, and others.

Competitive Dynamics and Strategic Considerations

  • Targeted tariffs may reduce market uncertainty, boosting investor confidence.
  • Sectors benefiting from exemptions could see increased investment, while negatively impacted sectors face challenges.

Long-Term Effects and Regulatory Impacts

  • Potential shifts in global trade policies affecting inflation and interest rates.
  • Tariffs may influence long-term industry structures and international relations.

This analysis highlights the interconnectedness of market sentiment, policy expectations, and sector performance, emphasizing the importance of monitoring economic data and regulatory developments.