Stock Market Update

The S&P 500 futures are down four points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 33 point and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are up 57 points and are trading 0.1% above fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are little changed as investors digest the latest headlines around US trade policy.

President Trump imposed 25% tariffs on all automobile imports, effective April 3 and announced select auto part tariffs, effective May 3.

He also warned that "If the European Union works with Canada in order to do economic harm to the USA, large scale tariffs, far larger than currently planned, will be placed on them both."

The 10-yr yield is five basis points higher at 4.39% and the 2-yr yield is up one basis point to 4.02%.

In corporate news:

• General Motors (GM 47.90, -3.05, -6.0%), Stellantis (STLA 11.81, -0.15, -1.3%): President Trump to impose 25% tariffs on all cars not made in the U.S., according to CNBC
• GameStop (GME 26.31, -2.05, -7.2%): announces proposed private offering of $1.3 billion of convertible senior notes; expects to use the net proceeds to acquire Bitcoin in a manner consistent with GameStop’s Investment Policy
• Concentrix (CNXC 49.49, +3.81, +8.3%): beats by $0.21, reports revs in-line; guides Q2 EPS in-line, revs above consensus; reaffirms FY25 EPS guidance, guides FY25 revs in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: +0.2%, India's Sensex: +0.4%, South Korea's Kospi: -1.4%, Australia's ASX All Ordinaries: -0.5%.
  • In economic data:
    • China's February Industrial Profit -0.3% YTD (last -3.3%)
  • In news:
    • President Trump formally announced on Wednesday evening that imports of all cars and light trucks will be subject to a 25% tariff and said that imports from China could receive some relief if a TikTok deal is reached soon.
    • Japanese automakers retreated in reaction to the news while Chinese automakers held up well.
    • China's Premier Li cautioned against "rising instability" in global markets.
    • Reserve Bank of Australia Assistant Governor Hunter shared a cautious view regarding additional rate cuts.
• Major European indices trade in the red. STOXX Europe 600: -0.6%, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.6%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: UNCH.
  • In economic data:
    • Eurozone's February PPI 0.4% m/m (last 0.5%); 1.0% yr/yr (last 1.1%). February M3 Money Supply 4.0% yr/yr (expected 3.8%; last 3.6%), February Private Sector Loans 1.5% yr/yr (expected 1.4%; last 1.3%), and February loans to nonfinancials 2.2% (last 2.0%)
    • Spain's February Retail Sales 3.6% yr/yr (last 2.3%)
  • In news:
    • Automakers are pressured after President Trump officially announced a 25% tariff on all car and light truck imports into the United States, though some regional industry leaders have called for negotiations.
    • European Central Bank policymaker Kazaks spoke in favor of additional rate cuts if current conditions persist.
    • LVMH CEO Arnault expressed confidence in the region's potential for resilience.