US stock futures edged higher on Wednesday, eyeing a rebound from a sharp sell-off, amid hopes that President Donald Trump could soon scale back his new tariffs on Canada and Mexico. But a soft print on labor-market hiring revived worries about a slowdown.
S&P 500 (ES=F) and Dow Jones Industrial Average futures (YM=F) were both up around 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) advanced 0.3%, with all three gauges backing off earlier gains.
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Commerce Secretary Howard Lutnick threw a wrench in tariff developments late Tuesday, saying an existing Trump trade deal could provide a pathway to relief on some imports for Canada and Mexico as soon as Wednesday.
Late Tuesday, the president sent a message to markets, saying in an address to Congress, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.” Trump is widely believed to watch Wall Street’s performance closely as a measure of how well he’s doing.
A wave of selling hit stocks in recent days as investors fretted over potential harm to the economy from Trump’s escalating trade war. The S&P 500 hit its lowest level in four months on Tuesday, erasing all of its post-election gains, amid retaliation to Trump implementing 25% tariffs on Canada and Mexico and doubling duties on China.
A fresh look at the jobs market Wednesday provided another potentially worrisome update. Data from ADP showed that private-sector companies added just 77,000 jobs in February, a significant slump from January and also far below economist expectations.
The ADP print is part of a series of jobs data that tees up Friday’s all-important nonfarm-payrolls release.
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43 mins ago
Private sector adds fewer jobs than expected in February
Fresh data from ADP showed the private sector added 75,000 jobs in February, far fewer than economists’ estimates of 140,000 — and significantly lower than the 186,000 jobs added in January. January’s number of job additions was revised up from a prior reading of 183,000.
Other data from ADP released Wednesday showed that the median year-over-year pay increase for job switchers fell to 6.7% in February, well off its pandemic recovery peak of 16.4%. Wage gains for job stayers grew at a 4.7% pace in February, in line with the growth seen last week.
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Abercrombie stock falls premarket on subdued sales growth forecast
Abercrombie & Fitch (ANF) stock fell nearly 6% in premarket trading after the retailer forecast slower sales growth for the rest of the year.
Abercrombie expects net sales to grow by 3% to 5% as consumer spending weakens, compared with the 6.77% growth the Street expected.
For the year, the company sees operating margins of 14% to 15%, an outlook that includes the estimated impact of tariffs on imports from China, Mexico, and Canada.
Investors aren’t cheering for Fed rate cuts anymore
The market is now pricing in three rate cuts from the Federal Reserve this year as traders increase their bets on Fed easing amid concerns about US economic growth.
Auto stocks rally after Lutnick hints tariffs on Canada, Mexico could be cut
In a sign of relief for Detroit automakers, Commerce Secretary Howard Lutnick suggested the Trump administration could scale down new tariffs on Canada and Mexico.
Lutnick said on Tuesday that the president’s team is looking at the 2020 US-Mexico-Canada Agreement — a Trump 1.0 deal — as a way to meet “somewhere in the middle”. An announcement could come on Wednesday, he said.
Sources told Reuters that talks between the three countries are focusing on exemptions under USMCA’s rules of origin, which are largely aimed at auto companies.
General Motors (GM) stock rose 4% in premarket, while Ford (F) and Stellantis (STLA). rose about 2% and 6%, respectively. The auto giants closed Tuesday with losses.
CK Hutchinson soars as Li Ka-shing escapes Trump’s glare
There’s a flipside to the selling spurred by Trump’s rapid-fire shifts — the boost to individual stocks likely to see some benefit.
In Li Ka-shing’s case, shares of his company CK Hutchinson (CKHUY, 0001.HK) surged in Hong Kong after the 96-year-old billionaire turned a Trump threat into one of the deals of his lifetime.
Gold pulls back from record high as trade war fuels demand for haven assets
Gold (GC=F) has reversed its upward trajectory after gaining over 2% in the past two sessions and approaching its record high. This comes as volatility from President Donald Trump’s tariff actions sparks increased demand for safe-haven assets.
Trump preps markets for ‘a little disturbance’ in first address to Congress
President Donald Trump doubled down on ambitious tariff plans in an address to Congress on Tuesday night. In a wide-ranging speech, Trump referenced the current state of economic insecurity, proclaiming, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
President Trump touched on tariffs, taxes, Ukraine and the CHIPS act during his address to a joint session of Congress, with Wall Street hoping for relief after two days of stock losses led the S&P 500 to it’s lowest close since the election.
Chinese stocks climb as growth target sparks optimism for stimulus measures
Chinese stocks rose Wednesday as the country’s top leaders kicked off annual parliamentary meetings. They revealed key economic targets, fueling expectations for additional stimulus measures.
Oil falls as tariffs lower trust, OPEC+ raise crude production
Oil prices dropped for a third consecutive session on Wednesday as key producers plan to increase output in April, coupled with concerns that US tariffs on Canada, Mexico, and China could slow economic growth and fuel demand, dampening investor sentiment.
