• US stock futures slipped, with the S&P 500 aiming to snap a four-week losing streak. The Dow Jones Industrial Average is poised for a weekly gain, but the Nasdaq is down. The Nasdaq is in correction territory, and the Russell 2000 is nearing a bear market.
• US markets lost momentum on Thursday. Dow Jones Industrial Average futures declined 0.26%, S&P 500 futures declined 0.22%, and Nasdaq Composite futures declined 0.32%.
• London’s Heathrow Airport was forced to close due to a fire.
• Japan’s headline inflation eased slightly. UBS analysts highlighted “relatively positive signals” in China’s property sector. The EU will delay implementing tariffs on U.S. goods.
• Corporate earnings are increasingly impacted by the Trump administration’s economic policies. Nike warned of declining sales due to tariffs and weakening consumer confidence. Accenture shares slid after reporting federal spending cuts impacted revenue. FedEx cut its full-year profit and revenue outlook.
• European markets moved lower, with travel stocks leading losses. Hong Kong stocks fell sharply, while other Asian indexes traded mixed.
• US Treasury yields fell as economic uncertainty persisted.
• Gold prices retreated as the U.S. dollar strengthened. Oil prices edged lower but remained on course for a weekly gain. Bitcoin slipped slightly, mirroring declines in broader risk assets.
• Optimism about the stock market’s six-month outlook edged higher among individual investors. Concerns over stagflation have revived. Energy stocks continue to lead in analyst sentiment on Wall Street.

U.S. stock futures slipped on Friday morning as the S&P 500 aims to snap a four-week losing streak, driven by trade policy turmoil, recession fears, and a rollover in megacap technology shares. Despite the decline, the S&P 500 is still on track for a 0.4% weekly gain, with the bulk of the rally coming on Wednesday after the Federal Reserve reaffirmed its outlook for two rate cuts this year. The Dow Jones Industrial Average is poised for a 1.1% weekly gain, marking its best performance since late January. However, the tech-heavy Nasdaq Composite is down 0.4% for the week, heading for its fifth consecutive weekly loss, the longest such stretch since May 2022.

The Trump administration’s sweeping overhaul of federal governance and economic policies is increasingly impacting corporate earnings, with warnings from companies like Accenture and Nike highlighting business uncertainty. Major U.S. benchmarks have struggled since the start of 2025, with the Nasdaq Composite in correction territory and the small-cap Russell 2000 teetering on the brink of a bear market—down nearly 20% from recent highs. Although stocks rebounded Wednesday following the Fed’s decision, the S&P 500 remains nearly 8% off its record high from February and has lost over 7% in the past month, reflecting the market’s ongoing volatility.

US Market Previous Day:

US markets lost momentum on Thursday, with the S&P 500 slipping 0.22%, the Dow Jones Industrial Average remaining mostly flat, and the Nasdaq Composite retreating 0.33%. The S&P 500 pulled back to close at 5,662.89 as uncertainty around the US economy continued to weigh on equities, stalling the market’s recovery attempts from a monthlong rout. The Nasdaq Composite slid to 17,691.63, dragged down by losses in major tech names like Apple and Alphabet. The Dow Jones Industrial Average inched down 11.31 points, or 0.03%, closing at 41,953.32.

(Source: TradingView.com)

US Futures Remain in  Red:

• Dow Jones Industrial Average futures declined by 0.63%
• S&P 500 futures showed losses of 0.69%
• Nasdaq Composite futures lead the pack with losses of 0.89%.

Key Economic Data/News:

Investors are bracing for a busy week ahead filled with key economic data releases, including reports on existing home sales, mortgage lending rates, GDP growth, and the personal consumption expenditures index on Friday.

Meanwhile, London’s Heathrow Airport was forced to close on Friday after a massive nearby fire caused a power outage. As Europe’s busiest airport, the closure is expected to impact approximately 145,000 passengers, according to aviation-data firm Cirium. Flight-tracking site Flightradar24 reported that 679 flights were scheduled to land and 678 flights were set to take off from Heathrow on Friday. The airport will remain closed until at least 11:59 p.m. local time, with significant disruptions anticipated in the coming days.

In Japan, headline inflation rose 3.7% year-on-year in February, easing from January’s two-year high of 4%. Core inflation, which excludes fresh food prices, stood at 3%, slightly below January’s 3.2% but higher than the 2.9% forecast by Reuters-polled economists. The inflation data came shortly after the Bank of Japan held interest rates steady on Wednesday.

In China, UBS analysts highlighted “relatively positive signals” in the property sector, predicting that home prices could stabilize in early 2026, joining a growing consensus of market watchers anticipating a recovery in the struggling real estate market. However, despite the recent rise in Chinese government bond yields, economists caution that it does not indicate reflation in Beijing’s economy.

Meanwhile, the European Union announced it will delay implementing its first round of tariffs on US goods until mid-April to allow more time for discussions with Washington. An EU spokesperson noted that the timeline adjustment does not reduce the impact of the response, as the EU continues to prepare for potential retaliation measures of up to €26 billion ($28 billion).

Earnings Season/Company News:

Nike warned on Thursday that its sales are expected to decline by a double-digit percentage in the current quarter as the sneaker giant struggles with new tariffs, weakening consumer confidence, and a slower-than-expected business turnaround. The company forecasted that fiscal fourth-quarter sales, which end in May, will be at the “low end” of the “mid-teens range.” Nike also expects its gross margin to shrink by 4 to 5 percentage points as it ramps up efforts to clear out excess inventory and outdated styles that are no longer resonating with consumers—a process expected to continue into fiscal 2026. The outlook was worse than analysts had anticipated, with Wall Street expecting an 11.4% sales decline for the quarter, according to LSEG. Following the announcement, Nike shares fell more than 4% in extended trading and are down over 5% year to date as of Thursday’s close.

Accenture shares also slid on Thursday after the consulting firm reported that tightening federal spending has started to weigh on its revenues. Shares tumbled 7.3% after the company’s CEO disclosed during its fiscal second-quarter earnings call that Accenture’s Federal Services division had lost contracts with the US government due to recent reviews. The company is one of the first major US corporations to feel the impact of the Trump administration’s Department of Government Efficiency. Despite the revenue challenges, Accenture reported earnings of $2.82 per share on $16.66 billion in revenue, slightly beating analysts’ expectations of $2.81 per share on $16.62 billion in revenue, according to FactSet.

FedEx shares declined in extended hours trading after the delivery giant cut its full-year profit and revenue outlook. CFO John Dietrich cited “continued weakness and uncertainty in the US industrial economy” as a key reason for the lowered forecast, noting that this has reduced demand for FedEx’s business-to-business services. The industrial sector, a major driver of FedEx deliveries, is facing mounting pressure from President Donald Trump’s tariff plans. CEO Raj Subramaniam described the current operating environment as “very challenging,” citing a “compressed peak season and severe weather events” as additional headwinds. FedEx slashed its full-year adjusted profit forecast to a range of $18 to $18.60 per share, down from its previous guidance of $19 to $20 per share for the fiscal year ending in May 2025. This marks a further downgrade from its initial target range of $20 to $22 per share.

In contrast, Micron Technology shares jumped after the company issued a bullish outlook for its fiscal third quarter. The memory and storage solutions provider projected adjusted earnings of $1.57 per share on $8.80 billion in revenue, surpassing Wall Street’s forecast of $1.47 per share on $8.50 billion in revenue, according to LSEG. Micron also beat top- and bottom-line estimates for its second quarter, boosting investor confidence.

Global Market Trends:

European markets moved lower in early trading on Friday, with travel stocks leading the losses. The pan-European Stoxx 600 fell around 0.64%, while France’s CAC 40 declined 0.67% and Germany’s DAX shed nearly 0.63%. In the UK, the FTSE 100 slipped approximately 0.65%. The travel and leisure sector faced pressure after London’s Heathrow Airport closed due to a fire at a nearby electrical substation, disrupting operations at one of Europe’s busiest travel hubs.

In Asia-Pacific markets, Hong Kong stocks fell sharply on Friday, while other regional indexes traded mixed amid ongoing uncertainty surrounding the US economy. The Hang Seng Index dropped 2.19% to finish at 23,689.72, weighed down by losses in healthcare and consumer cyclical stocks. Mainland China’s CSI 300 also fell 1.52%, closing at 3,914.7. Japan’s Nikkei 225 edged down 0.2% to 37,677.06, while the broader Topix added 0.29% to close at 2,804.16, extending its winning streak to seven sessions. Earlier in the day, the Topix hit an intraday high of 2,818.04, marking its highest level since July 2024.

South Korea’s Kospi gained 0.23% to end at 2,643.13, notching its fifth consecutive day of gains. However, the small-cap Kosdaq dipped 0.79% to close at 719.41. Meanwhile, Australia’s S&P/ASX 200 climbed 0.16%, closing at 7,931.2, as the country’s equities benefited from broad-based strength across energy and mining stocks.

Debt Market:

(Source: TradingView.com)

US Treasury yields fell on Friday as uncertainty surrounding the US economy and inflation levels persisted, driven by President Donald Trump’s ongoing trade tariff campaign. The benchmark 10-year Treasury note yield dipped more than 2 basis points to 4.212%, while the 2-year Treasury yield slipped nearly 2 basis points to 3.938%.

Investors remained cautious as they weighed the potential impact of Trump’s tariff policies on economic growth and inflation. The Federal Reserve’s decision to hold interest rates steady earlier this week further reflected the ongoing economic uncertainty. Market participants are closely monitoring the outlook for future monetary policy moves, with attention on how tariffs could influence the Fed’s next steps.

Commodities and Other Assets:

Gold prices retreated on Friday as the US dollar strengthened and investors took profits following bullion’s rally to three consecutive all-time peaks earlier in the week. The surge was driven by safe-haven demand amid escalating trade war concerns and growing expectations of a Federal Reserve rate cut later this year. Despite the pullback, gold was on track for its third straight weekly gain, having added 1.6% so far this week. It reached an all-time high of $3,057.21 per ounce on Thursday. The metal’s upward momentum has been fueled by a mix of geopolitical tensions and economic uncertainty, propelling it to 16 record highs this year, with four surpassing the crucial $3,000 mark.

Oil prices edged lower on Friday but remained on course for a second consecutive weekly gain, supported by fresh US sanctions against Iran and planned production cuts by major oil producers. Brent crude was on track for a 1.5% weekly gain, while WTI was set to rise nearly 1%, marking their strongest weekly performance since early January. On Thursday, the US imposed new sanctions against Iran, targeting an independent Chinese refinery and several oil tankers allegedly part of Iran’s “shadow fleet.” The sanctions aim to deter Tehran from advancing its nuclear program. Additionally, OPEC+ announced that seven member states will implement monthly production cuts ranging from 189,000 to 435,000 barrels per day until June 2026 to offset recent production increases, signaling tighter oil supplies in the coming months.

(Source: TradingView.com)

Bitcoin slipped slightly on Friday, mirroring declines in broader risk-driven assets as uncertainty over US interest rates and higher trade tariffs kept traders wary of crypto markets. Although Bitcoin and other cryptocurrencies experienced some relief earlier in the week, they remained weighed down by sharp year-to-date losses amid deteriorating risk appetite. Crypto-friendly measures introduced by US President Donald Trump failed to spark enthusiasm, as economic uncertainty overshadowed sentiment in digital asset markets.

Market Sentiment:

Optimism about the stock market’s six-month outlook edged higher this week among individual investors surveyed by the American Association of Individual Investors, though it remained below the historical average for the 10th time in the past 12 weeks. Bullish sentiment increased to 21.6% from 19.1% last week, but this remained well below the long-term average of 37.5%. Meanwhile, bearish sentiment dipped slightly to 58.1% from 59.2%, still significantly higher than its historical average of 31.0% for the 16th time in 18 weeks. The persistent pessimism reflects ongoing uncertainty around the economic landscape and geopolitical risks.

The Federal Reserve’s decision to raise its inflation outlook while trimming its economic growth expectations has revived concerns over stagflation—a combination of rising prices and slowing economic expansion. The uncertainty surrounding President Donald Trump’s tariff policies has further rattled equity markets. Fed Chair Jerome Powell cautioned that the tariffs could potentially “delay” progress on inflation moderation, adding to investor anxiety. Traders widely expect the Fed to hold off on any policy changes until it assesses the impact of Trump’s tariff plans, particularly with the exemption on select Canadian and Mexican imports set to expire on April 2.

On Wall Street, energy stocks continue to lead in analyst sentiment, with 65% of firms holding buy ratings on the sector, according to FactSet data. This makes energy the most favored industry in the S&P 500. Information technology and communication services stocks followed closely, with 63% buy ratings, while consumer discretionary stocks garnered 58%. Conversely, consumer staples had the fewest buy ratings at just 41%, followed by utilities with 48% and industrials at 52%. The divergence reflects market confidence in growth-oriented sectors, while defensive and traditionally stable industries are viewed with less enthusiasm.