Stock futures dropped early Thursday as the market correction regained momentum, with major indexes pointing to further declines. Dow Jones futures fell 1%, S&P 500 futures declined 1.25%, and Nasdaq 100 futures slipped 1.6%, indicating another day of turbulence for the market.
The previous day saw a brief rally following President Donald Trump’s announcement of a one-month reprieve on tariffs for the U.S. auto industry from Canada and Mexico, offering some hope for investors. The Nasdaq reclaimed a key level, while the S&P 500 found support, as market participants speculated about potential additional reprieves.
Despite the gains, stocks were under pressure again Thursday. The Dow, S&P 500, and Nasdaq were set to retrace losses as concerns about tariff uncertainty and volatility in AI stocks continued to weigh heavily on investor sentiment. Marvell Technology, JD.com, and Zscaler were among the notable earnings movers in the premarket, signaling ongoing uncertainty within the tech and retail sectors.
Trump Tariff Delay for Automakers
The White House had announced Wednesday that automakers would receive a one-month exemption from the 25% tariffs on Canada and Mexico, which had been set to begin on Tuesday. President Trump spoke directly with CEOs from General Motors, Ford Motor, and Stellantis to discuss the reprieve, although global auto tariffs are still set to take effect on April 2.
The announcement provided some relief to U.S. automakers, with GM, Ford, and Stellantis shares jumping 7.2%, 5.8%, and 9.3%, respectively. However, the optimism was tempered as Trump’s plan to impose global tariffs by next month remained in place. Additionally, Agriculture Secretary Brooke Rollins suggested that some agricultural products, such as potash and fertilizer, might also be exempted, particularly as these imports are critical to U.S. farmers.
Market Performance and ETFs
U.S. stocks had a brief bounce on Wednesday, fueled by hopes for further tariff reprieves. The Dow gained 1.1%, the S&P 500 rose 1.1%, and the Nasdaq climbed 1.5%. Despite the rally, the market remains on edge, with the Nasdaq continuing its recovery above the 200-day moving average, while the S&P 500 and the Invesco S&P 500 Equal Weight ETF rebounded from key levels.
Growth-focused ETFs like the Innovator IBD 50 ETF (FFTY) rose 2.5%, while the VanEck Vectors Semiconductor ETF (SMH) gained 1.85%, reflecting some optimism in tech. On the other hand, the Energy Select SPDR ETF (XLE) fell 1.45%, and the SPDR S&P Metals & Mining ETF (XME) surged 3.15%, reflecting market reactions to ongoing sector shifts.
Earnings Results and Stock Movements
Marvell Technology (MRVL) and Zscaler (ZS) reported earnings Wednesday evening. Marvell’s results beat expectations, but its stock fell sharply in overnight trading as concerns about future guidance and recent sell-offs in AI-related stocks weighed on its performance. Marvell had gained 2.05% during regular trading, holding the 200-day line before the after-hours decline.
Zscaler, a cybersecurity software company, saw solid earnings, with its stock rising after the company guided higher for the upcoming period. JD.com also posted strong earnings, sending shares up after a 6.9% increase on Wednesday. Meanwhile, BJ’s Wholesale slightly beat earnings expectations, although its guidance was weaker than consensus, sending shares modestly higher before the open.
Palantir Technologies (PLTR)
Palantir Technologies (PLTR) saw a 6.8% increase on Wednesday, reclaiming the 50-day line after a few sessions of resistance. Despite the upward movement, Palantir’s stock fell slightly in the premarket Thursday, signaling that caution may still be warranted. Investors have been cautious with high-growth stocks like Palantir, especially after substantial losses in recent weeks. The stock’s volatility, with a nearly 9% average true range, may signal more risk for investors, especially if the market sees further declines.
As the market correction continues and the tariff situation remains fluid, investors are advised to remain cautious, focusing on defensive strategies while being mindful of potential opportunities in specific sectors like tech and semiconductors.
