Investors are digesting President Donald Trump's reciprocal tariff plans
Trade war concerns have resurfaced after President Donald Trump announced plans to impose levies on goods from countries with duties on U.S. products, though reciprocal tariffs are not set to go into effect immediately. Meanwhile, consumer spending signaled a potential weakening in economic growth ahead, with retail sales slipping 0.9% in January, much worse than the estimated 0.2% decline.
In response, Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) futures are lower this morning, as traders brush off hopes that this week's inflation reports will result in a softer-than-expected personal consumption expenditures (PCE) reading later this month.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2 million call contracts and 1.5 million put contracts exchanged on Thursday. The single-session equity put/call ratio rose to 0.77 and the 21-day moving average stayed at 0.60.
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Shares of
Roku Inc (NASDAQ:ROKU) are up 14.5% in premarket trading, after the
streaming giant shared smaller-than-expected losses for the fourth quarter as well as a revenue beat. The company also unveiled an upbeat annual revenue forecast, triggering a slew of bull notes. ROKU added 46.9% in the last six months.
- Airbnb Inc (NASDAQ:ABNB) beat fourth-quarter earnings and revenue expectations. In addition to several price-target hikes, the stock attracted an upgrade from Baird to "outperform." Shares are up 13.1% ahead of the open, sporting an 18.6% six-month lead.
- Moderna Inc (NASDAQ:MRNA) stock is down 4.2% before the bell, brushing off a revenue beat for the fourth quarter due to wider-than-expected losses. The security shed 62.9% in the last year.
- Next week brings the Federal Open Market Committee's meeting minutes.
Asian Markets Rise Despite Trump's Tariffs
Asian markets finished mostly higher to end the week, as investors eyed U.S. President Trump’s reciprocal tariff plan. Hong Kong’s Hang Seng jumped 3.7% to secure its best week since October, while China’s Shanghai Composite rose 0.4%. The Kospi added 0.3%, after South Korea’s seasonally adjusted unemployment rate fell to 2.9% in January from the previous month’s 3.7%. Japan’s Nikkei was the only laggard, dropping 0.8% for the session.
European markets are struggling for direction today, but are otherwise heading for a stellar week. The French CAC 40 was up 0.4% at last glance, while London’s FTSE 100 and the German DAX fall 0.2% and 0.4%, respectively. Earnings season is still in full swing, with Hermes and Safran staging notable bounces after their results. Meanwhile, Goldman Sachs raised the upside potential for European stocks on growing hopes of peace between Russia and Ukraine.