Stock Market Update

The S&P 500 futures are up two points and are trading 0.1% above fair value, the Nasdaq 100 futures are down one point and are trading in line with fair value, and the Dow Jones Industrial Average futures are up 43 points and are trading 0.1% above fair value.

There's not a lot of conviction in early trading, leading to limited movement in contracts linked to major equity indices. 

The market is still waiting on reciprocal tariffs to be announced on April 2. President Trump said in an interview that he doesn't want "too many exceptions," but also said that he would be "more lenient than reciprocal," according to Bloomberg. 

Treasury yields are higher. The 10-yr yield is up three basis points to 4.34% and the 2-yr yield is up one basis point to 4.01%.

In corporate news:

• Dollar Tree (DLTR 69.03, +1.89, +2.8%): reports Q4 (Jan) results; agrees to divest Family Dollar
• GameStop (GME 29.42, +4.02, +16.1%): beats by $0.22 (two estimates), misses on revs; Also announces that its board has approved policy to add Bitcoin as a treasury reserve asset
• Chewy (CHWY 35.50, +1.89, +5.6%): beats by $0.25, beats on revs
• NVIDIA (NVDA 119.19, -1.50, -1.2%): China environmental regulations could hurt Nvidia (NVDA) sales in the country, according to FT
• Boeing (BA 182.41, -0.18, -0.1%): Judge ordered Boeing (BA) to face trial in 737 Max case, according to WSJ

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region finished Wednesday on a mostly higher note. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: UNCH, India's Sensex: -0.9%, South Korea's Kospi: +1.1%, Australia's ASX All Ordinaries: +0.7%.
  • In economic data:
    • Japan's January Corporate Services Price Index 3.0% yr/yr (expected 3.1%; last 3.2%). January Leading Index 108.3 (expected 108.0; last 108.3) and Coincident Indicator 0.1% m/m, as expected (last 1.0%)
    • South Korea's March BSI Manufacturing Index 68 (last 65)
    • Singapore's February Industrial Production -7.5% m/m (expected -0.3%; last 2.8%); -1.3% yr/yr (expected 7.5%; last 8.0%)
    • Australia's February Monthly CPI Indicator 2.4% yr/yr (expected 2.5%; last 2.5%)
  • In news:
    • The market drew some support from indications that not all proposed tariffs would take effect on April 2 and that some exemptions may still be granted.
    • The Chief Executive of the Hong Kong Monetary Authority highlighted the potential for significant Chinese capital inflows into Hong Kong, emphasizing opportunities for the city's financial markets in the coming years.
    • Bank of Japan Governor Ueda continued hinting at potential rate hikes if inflation aligns with forecasts, according to Nikkei.
• Major European indices trade on a mostly lower note. STOXX Europe 600: -0.4%, Germany's DAX: -0.5%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.2%.
  • In economic data:
    • U.K.'s February CPI 0.4% m/m (expected 0.5%; last -0.1%); 2.8% yr/yr (expected 3.0%; last 3.0%). February Core CPI 0.4% m/m (expected 0.5%; last -0.4%); 3.5% yr/yr (expected 3.6%; last 3.7%). February House Price Index 4.9% yr/yr (expected 4.4%; last 4.6%)
    • France's March Consumer Confidence 92 (expected 94; last 93)
    • Spain's Q45 GDP 0.8% qtr/qtr, as expected (last 0.8%); 3.4% yr/yr (expected 3.5%; last 3.5%)
    • Swiss March ZEW Expectations -10.7 (last 3.4)
  • In news:
    • The U.K.'s FTSE (+0.2%) outperforms after the release of cooler-than-expected inflation figures for February and ahead of the spring budget speech from Chancellor Reeves.
    • The British Chancellor is expected to announce additional benefit cuts aimed at plugging a budget gap.
    • European Central Bank President Christine Lagarde emphasized resilience, stating, "Europe must prepare for any trade shocks," boosting defense stocks like Rheinmetall.
    • German defense contractor Renk forecasted growth for 2025, backed by a €5 billion order book, reflecting increased defense spending in Europe.
    • Goldman Sachs analysts told The New York Times that "European earnings could face pressure" if trade tensions persist, tempering broader optimism.