US stock futures dropped as Wall Street reacted to a slew of announcements from President Trump about a new wave of tariffs impacting furniture, pharmaceuticals and heavy machinery to take effect from Oct.1.
Futures attached to the Dow Jones Industrial Average (YM=F) hovered just below the flatline. Benchmark S&P 500 futures (ES=F) ticked down 0.1%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) slipped 0.2%.
Stocks on Thursday logged a third straight day of losses. A surprise jump in GDP growth and decline in jobless claims shook investor confidence that more interest rate cuts this year are a sure bet. Jitters about the sustainability of the AI boom also unnerved Wall Street amid a series of major Big Tech moves in the sector this month.
Meanwhile, President Trump signed an order approving a $14 billion TikTok deal, though China still needs to sign off on the agreement. Fed governor Lisa Cook also urged the Supreme Court to reject Trump's attempt to fire her over alleged mortgage fraud, saying it would cause “chaos and disruption” in markets.
The economy's mixed signals and signs of division among Fed policymakers have amped up anticipation for the release of the August PCE report. Investors are looking for reassurance that inflation hasn't risen so fast that it could threaten the two rate cuts the Fed has projected for this year. The report is set to be released at 8:30 a.m. ET and is expected to show an easing in price pressures.
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