US Stocks Likely To Open Lower, Analysts Warn 'Prolonged Uncertainty Could Hurt Both US And Global Risk Assets'

U.S. stock futures fell on Friday after two consecutive days of decline on Wednesday and Thursday. Futures of major benchmark indices were lower in premarket trading.

Stocks slid as investors digested the new auto tariffs levied on foreign cars and auto parts.

President Donald Trump also warned that he would impose much higher tariffs on the EU and Canada if they retaliate against his planned tariffs.

In a Truth Social post, he threatened large-scale tariffs to counter any economic harm from the two allies. While he has recently hinted at targeting them in his upcoming "Liberation Day" tariffs, no direct actions have been taken yet.

Traders will watch out for the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures Price Index, specifically the core PCE, which excludes food and energy prices due to their volatility.

With the 10-year Treasury yield at 4.32% and the 2-year at 3.99%, the CME Group's FedWatch tool shows markets pricing in an 88.4% likelihood of the Federal Reserve maintaining current interest rates through its May meeting.

Futures	Change (+/-)
Nasdaq 100	-0.40%
S&P 500	-0.22%
Dow Jones	-0.15%
Russell 2000	0.12%

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Friday. The SPY was down 0.19% to $565.98, while the QQQ declined 0.36% to $479.89, according to Benzinga Pro data.

Cues From Last Session:

Most sectors on the S&P 500 ended in the red on Thursday, with energy, communication services, and information technology stocks leading the losses. However, health care and consumer staples stocks managed to buck the trend, closing higher.

European automakers were hit hard, with Mercedes-Benz Group AG MBGAF sliding 1.7% and Porsche Automobil Holding SE POAHF dropping 2.3%.

In earnings news, shares of TD Synnex Corp. SNX tumbled around 14% after the company reported its first-quarter results. Verint Systems Inc. VRNT also fell sharply, dropping more than 13% following worse-than-expected fourth-quarter earnings and weaker-than-expected FY26 EPS guidance.

On the economic front, U.S. initial jobless claims dipped by 1,000 to 224,000 for the week ending March 22, slightly below market estimates of 225,000. Meanwhile, fourth-quarter GDP growth was revised up to an annualized 2.4% from 2.3%, and U.S. wholesale inventories increased by 0.3% in February, following a 0.8% gain in January.

Index	Performance (+/-)	Value
Nasdaq Composite	-0.53%	17,804.03
S&P 500	-0.33%	5,693.31
Dow Jones	-0.37%	42,299.70
Russell 2000	-0.39%	2,065.70

Insights From Analysts:

According to the analysts at BlackRock, the weight of non-U.S. equities in global equity indexes has been on the rise since the end of January. This is caused by the policy uncertainty, which has shaken the investor belief in the U.S. growth and equity strength, pulling the S&P 500 down more than 3%, the note added.

“The selloff has been exacerbated by investors rapidly pulling out of popular trades – like the tech-heavy momentum equity style factor and cyclical trades that were betting on a boost from growth from potential U.S. deregulation and tax cuts.”

“We stay overweight U.S. stocks on a six- to 12-month tactical horizon. Yet prolonged uncertainty could hurt both U.S. and global risk assets,” the note adds.

Meanwhile, as the uncertainty around tariffs mounts, Michael Townsend, managing director of legislative and regulatory affairs with Schwab, said that “The White House has been sending mixed signals.”

“First, saying that they would be imposed on all countries, then more recently saying they will initially focus on 10 to 15 countries with which the U.S. has big trade deficits. The plan also was to announce tariffs on automobiles, pharmaceuticals, and semiconductors next week, but those reportedly will be delayed. The uncertainty is driving companies and investors crazy.”

See Also: How To Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Friday:

Personal income, spending, personal consumption expenditure index, and core PCE index are scheduled to be released at 8:30 a.m. ET.

Consumer sentiment data is scheduled to be released at 10 a.m. ET.

Stocks In Focus:

Super League Enterprise Inc. SLE jumped 7.32% in premarket on Friday ahead of its earnings before the opening bell. Analysts expect a quarterly loss of 26 cents per share on the revenue of $5.50 million.

Katapult Holdings Inc. KPLT was down 2.16% as Wall Street expects it to report a quarterly loss of $1.77 per share on revenue of $62.20 million before the opening bell.

Lululemon Athletica Inc. LULU slumped 10.84% as it sees full-year 2025 earnings in the range of $14.95 to $15.15 per share, versus estimates of $15.30 per share.

Braze Inc. BRZE surged 10.63% after it reported better-than-expected fourth-quarter financial results and issued strong FY26 adjusted EPS guidance.

AAR Corp. AIR was up 2.41% after posting upbeat earnings for the third quarter, while sales missed estimates.

Direct Digital Holdings Inc. DRCT plunged 38.35% after it reported a substantial earnings miss in the fourth quarter, with earnings per share of -$0.54, sharply below the forecasted $0.11.

XTI Aerospace Inc. XTIA dropped 31.30% after announcing a public offering of common stock and warrants; the offering’s size and valuation remain undisclosed. Proceeds will repay debt and fund operations. This move follows a recent $5 million share buyback.

Dermata Therapeutics Inc. DRMA plummeted 21.13% as it announced an agreement for the exercise of 4,834,470 outstanding warrants at a reduced price of $1.284 per share.

Sensei Biotherapeutics Inc. SNSE climbed 26.60% after reporting encouraging Phase 1/2 trial results for solnerstotug, showing a 14% overall response rate in resistant tumors, significantly exceeding historical rechallenge rates.

DBV Technologies SA ADR DBVT surged 59.85% after securing up to $306.9 million in financing for its Viaskin peanut patch program, including $125.5 million upfront and potentially $181.4 million from warrant exercises.

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading lower in the early New York session by 0.06% to hover around $69.88 per barrel.

Gold Spot US Dollar advanced 0.47% to hover around $3,071.22 per ounce. Its fresh record high stood at $3,086.08 per ounce.

Asian markets closed on a lower note on Friday. China’s CSI 300, India's S&P BSE Sensex, Hong Kong's Hang Seng, South Korea's Kospi, and Japan's Nikkei 225 index declined, whereas Australia's ASX 200 index rose. European markets were also lower in early trade.

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