After ending yesterday’s choppy session slightly higher, stocks may move back to the downside in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.
Profit taking may contribute to an initial pullback on Wall Street after yesterday’s slim gains lifted the S&P 500 to a new record closing high.
Lingering concerns about a global trade war may also weigh on the markets after President Donald Trump said he plans to impose tariffs on U.S. imports of automobiles, pharmaceuticals and semiconductors.
Trump said the 25 percent tariffs could be imposed as early as April 2nd and warned the duties could “go substantially higher over a course of a year.”
However, overall trading activity may be somewhat subdued, as traders look ahead to the release of the minutes of the Federal Reserve’s latest monetary policy meeting this afternoon.
The minutes of the Fed’ January meeting, when the central bank decided to leave interest rates unchanged following three straight rate cuts, could shed additional light on the outlook for rates.
In U.S. economic news, the Commerce Department released a report showing housing starts pulled back by more than expected in the month of January.
Stocks showed a lack of direction throughout much of the trading session on Tuesday, extending the lackluster performance seen during last Friday’s session. The major averages moved to the upside going into end the day, however, with the S&P 500 reaching a new record closing high.
The major averages all posted modest gains on the day. The S&P 500 rose 14.95 points or 0.2 percent to 6,129.58, the Nasdaq inched up 14.49 points or 0.1 percent to 20,041.26 and the Dow crept up 10.26 points or less than a tenth of a percent to 44,556.34.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while China’s Shanghai Composite Index climbed by 0.8 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 1.2 percent, the French CAC 40 Index is down by 0.8 percent and the U.K.’s FTSE 100 Index is down by 0.6 percent.
In commodities trading, crude oil futures are climbing $0.77 to $72.62 a barrel after jumping $1.11 to $71.85 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,957.10, up $8.10 compared to the previous session’s close of $2,949. On Tuesday, gold spiked $48.30.
On the currency front, the U.S. dollar is trading at 151.73 yen compared to the 152.06 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0428 compared to yesterday’s $1.0446.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2025-02-19 13:50:52
