New York City, USA – Stock futures showed a modest increase on Wednesday night following a significant drop in the markets the day before. Dow Jones Industrial Average futures were up by 0.15%, while S&P 500 futures rose by 0.2% and Nasdaq 100 futures climbed by 0.3%. The previous session saw major stock indexes taking a hit, particularly in the technology sector, amid growing concerns over tariffs.
The Dow Jones Industrial Average saw a 1.7% decrease, roughly 700 points down, while the S&P 500 dropped by 2.2% and the Nasdaq Composite fell by nearly 3.1%. The Nasdaq was down by about 19% from its recent peak, nearing bear market territory. The decline was fueled by worries over tariffs, particularly after chipmaker Nvidia announced a $5.5 billion charge related to exporting its H20 graphics processing units under U.S. export controls.
Wednesday afternoon saw stocks hitting session lows following comments by Federal Reserve Chair Jerome Powell, who warned about potential inflation spikes due to the tariffs imposed by President Donald Trump. Powell expressed concerns over the impact of the levies on the economy’s dual-mandate goals of achieving maximum employment and stable prices. The remarks rattled investors, leading to increased uncertainty and selling activity in the markets.
Recent tariff escalations by the Trump administration have added to market volatility, with concerns over the economic repercussions looming large. Despite a temporary exemption on certain imports, the fear of a recession and stagflation is palpable among investors. Earnings season is also adding to the unease, with companies bracing for potential impacts on their bottom line.
The S&P 500 and Nasdaq have seen declines of around 6% and 5.7% respectively this month, with the Dow losing about 5.6%. Analysts warn of further market volatility as trade tensions continue to dominate headlines. Powell’s comments have only added to the uncertainty, leaving investors on edge as they navigate through a challenging economic landscape.
As the markets brace for more tariff-related developments, investors are closely watching for any signs of progress or setbacks in trade negotiations. The looming threat of further escalations could continue to weigh on market sentiment in the coming days, shaping the direction of stock futures and major indices.