Stocks Muted Before the Open After Trump’s Auto Tariffs, U.S. GDP Data in Focus

June S&P 500 E-Mini futures (ESM25) are down -0.01%, and June Nasdaq 100 E-Mini futures (NQM25) are down -0.04% this morning as investors weigh U.S. President Donald Trump’s announcement of a 25% tariff on automotive imports.

President Trump signed a proclamation on Wednesday to impose a 25% tariff on auto imports. The auto tariffs are set to take effect at 12:01 a.m. Washington time on April 3rd, initially applying to fully assembled vehicles. By May 3rd, the scope will widen to cover key automobile parts such as engines, transmissions, powertrain components, and electrical systems, with the possibility of further expansion if needed, according to the proclamation. As a result, shares of legacy automakers slumped in pre-market trading, with General Motors (GM) sliding over -5% and Ford Motor (F) falling nearly -3%.

Investors now await a fresh batch of U.S. economic data, including the third estimate of fourth-quarter GDP and jobless claims figures, as well as comments from a Federal Reserve official.

In yesterday’s trading session, Wall Street’s major indexes closed in the red. The Magnificent Seven stocks sank, with Nvidia (NVDA) slumping over -5% to lead losers in the Dow and Tesla (TSLA) sliding more than -5%. Also, chip stocks retreated, with Arm Holdings (ARM) dropping over -7% to lead losers in the Nasdaq 100 and Advanced Micro Devices (AMD) falling more than -4%. In addition, AI infrastructure stocks plunged after TD Cowen said that Microsoft abandoned more data center projects in the U.S. and Europe, with Super Micro Computer (SMCI) slumping over -8% to lead losers in the S&P 500. On the bullish side, Cintas (CTAS) climbed more than +5% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company posted upbeat FQ3 results and raised its full-year EPS guidance.

“Uncertainty on the tariff front remains ridiculously high, leaving it incredibly tough for businesses or consumers to plan more than about a day into the future, and still making it nigh-on impossible for market participants to price risk,” said Michael Brown, a strategist at Pepperstone Group Ltd.

Economic data released on Wednesday showed that U.S. durable goods orders unexpectedly rose +0.9% m/m in February, stronger than expectations of -1.1% m/m, while core durable goods orders, which exclude transportation, advanced +0.7% m/m, stronger than expectations of +0.2% m/m.

Minneapolis Fed President Neel Kashkari said on Wednesday that unpredictable fiscal policies under President Donald Trump’s administration are clouding the central bank’s economic outlook. He noted that the Fed should “just sit where we are for an extended period of time until we get clarity.” Also, St. Louis Fed President Alberto Musalem said it’s uncertain whether the impact of tariffs will be temporary and warned that secondary effects might prompt policymakers to keep interest rates unchanged for longer.

Meanwhile, U.S. rate futures have priced in a 90.4% probability of no rate change and a 9.6% chance of a 25 basis point rate cut at May’s monetary policy meeting.

Today, all eyes are on the Commerce Department’s final estimate of gross domestic product, which is set to be released in a couple of hours. Economists expect the U.S. economy to expand at an annual rate of 2.3% in the fourth quarter, in line with initial estimates.

Investors will also focus on U.S. Initial Jobless Claims data. Economists expect this figure to be 225K, compared to last week’s number of 223K.

U.S. Pending Home Sales data will be reported today. Economists foresee the February figure coming in at +0.9% m/m, compared to the previous figure of -4.6% m/m.

U.S. Wholesale Inventories data will be released today as well. Economists forecast the preliminary February figure at +0.7% m/m, compared to +0.8% m/m in January.

In addition, market participants will be looking toward a speech from Richmond Fed President Thomas Barkin.

On the earnings front, fitness apparel maker Lululemon Athletica (LULU) is set to report its Q4 earnings results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.392%, up +1.24%.

The Euro Stoxx 50 Index is down -0.52% this morning as investors digest new automotive tariffs announced by U.S. President Donald Trump. Automobile stocks plunged on Thursday after the Trump administration announced a 25% tariff on U.S. auto imports, set to take effect on April 3rd. Trump also indicated he would impose additional tariffs on the EU and Canada if they worked together against the U.S. In a statement on Wednesday, European Commission President Ursula von der Leyen said she “deeply regrets” Trump’s latest move to impose tariffs. “The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” she said. Meanwhile, the European Union is also bracing for Trump’s reciprocal tariffs, set to be announced next week, and is considering deploying one of its strongest trade-policy tools, the so-called anti-coercion instrument, as a potential retaliatory measure. On the economic front, the European Central Bank reported on Thursday that lending growth in the Eurozone picked up in February. In corporate news, Next Plc (NXT.LN) gained over +7% after the British retail giant’s full-year profit surpassed the 1 billion pounds mark for the first time, prompting it to raise its 2025 guidance.

European Central Bank Governing Council member Martins Kazaks said on Thursday that the ECB will likely be able to cut borrowing costs further if the current economic path is maintained. “But the uncertainty at this point is very high, and the main source of uncertainty is geopolitics,” he added.

Asian stock markets closed mixed today. China’s Shanghai Composite Index (SHCOMP) closed up +0.15%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.60%.

China’s Shanghai Composite Index closed slightly higher today as investors shrugged off new tariffs on U.S. car imports as well as weak industrial profit data from the country. Pharmaceutical and semiconductor stocks gained ground on Thursday. Automobile stocks also advanced as the impact of new U.S. automotive tariffs was expected to be limited, given their minimal exposure to the U.S. market. Also aiding sentiment, U.S. President Donald Trump said on Wednesday that China could receive a tariff reduction as part of a deal to sell ByteDance’s social video platform TikTok to an American company. Meanwhile, profits at China’s industrial firms shrank at the beginning of 2025, signaling a tough road ahead for businesses as they contend with persistent deflationary pressures and an intensifying trade war with the U.S. Industrial profits declined 0.3% in the first two months from a year earlier, the National Bureau of Statistics said Thursday. In other news, JPMorgan followed its Wall Street peers in becoming more bullish on China, boosting its year-end target for the MSCI China index to 95. In corporate news, Haidilao climbed about +6% in Hong Kong after the hotpot restaurant chain operator reported a 4.6% year-over-year increase in annual profit.

Japan’s Nikkei 225 Stock Index closed lower today as growing concerns over U.S. tariffs weighed on sentiment. Automobile stocks led the declines on Thursday after U.S. President Donald Trump imposed a 25% tariff on all imported cars and light trucks, set to take effect next week. Auto industry experts anticipate the move will raise prices and disrupt production. Technology stocks also slumped following a tech-driven selloff on Wall Street overnight. Meanwhile, Marcel Thieliant, head of Asia-Pacific at Capital Economics, stated on Thursday that if Trump proceeds with import tariffs on Japan, the nation’s automakers would be the hardest hit. Japan’s Prime Minister Shigeru Ishiba stated in parliament on Thursday that the country will consider countermeasures in response to the Trump administration’s recent tariffs on U.S. car imports. Investors also continued to assess the Bank of Japan’s policy outlook after Governor Kazuo Ueda said on Wednesday that the central bank might consider raising interest rates if an increase in food prices leads to broader and stronger inflation. Investors will look for further clues on the timing of the BOJ’s next interest rate hike in the summary of opinions from last week’s central bank meeting, which is set to be released on Friday. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +4.19% to 21.86.

Pre-Market U.S. Stock Movers

Shares of legacy automakers are slumping in pre-market trading after the tariffs announcement. General Motors (GM) is down over -5%, and Ford Motor (F) is down nearly -3%.

Advanced Micro Devices (AMD) dropped more than -2% in pre-market trading after Jefferies downgraded the stock to Hold from Buy.

PayPal Holdings (PYPL) slid about -1% in pre-market trading after Arete downgraded the stock to Neutral from Buy.

Steelcase (SCS) surged over +10% in pre-market trading after the company posted better-than-expected Q4 adjusted EPS and issued above-consensus Q1 guidance. 

Jefferies Financial (JEF) fell more than -2% in pre-market trading after reporting weaker-than-expected FQ1 results.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - March 27th

Lululemon Athletica (LULU), TD Synnex (SNX), Braze (BRZE), AAR (AIR), Ermenegildo Zegna NV (ZGN), Argan (AGX), Acuren (TIC), Infinity Natural Res (INR), Telesat (TSAT), Sky Harbour (SKYH), Winnebago Industries (WGO), Oxford Industries (OXM), Pulse Biosciences (PLSE), Jiayin (JFIN), Bitfarms (BITF), Tsakos Energy (TEN), Netlist (NLST), TSS Inc (TSSI), Hirequest (HQI), INmune Bio (INMB), Innate Pharma (IPHA), Adc Thera (ADCT).