Opening Comment — Thursday, April 10, 2025
DJIA: 40,608.45, up 2,962.86
S&P 500: 5,456.90, up 474.13
NASDAQ: 17,124.97, up 1,857.06
Stocks lower following yesterday’s gains
Stock futures are lower Thursday morning following yesterday’s strong rallies. Investors are looking forward to today’s Consumer Price Index (CPI) report for March and the latest unemployment claims data. As of 7:20 AM ET, the Dow is decreasing 1.3%, while the S&P 500 is down 1.7%. The Nasdaq 100 is falling 2.0% relative to fair value on the GLOBEX.
U.S. equities were significantly higher on Wednesday as President Donald Trump declared a 90-day suspension on the higher country-specific tariffs that went into effect at midnight, while leaving in place the global 10% tariff and raising levies on China to 125%. Minutes from the Federal Open Market Committee’s March 19 meeting showed that many Federal Reserve (Fed) members viewed the “risks to inflation as tilted to the upside and risks to employment as tilted to the downside.” Meanwhile, wholesale trade sales posted stronger-than-expected growth. The Dow was up 7.9%, while the tech-heavy Nasdaq Composite rose 12.2%. The S&P 500 increased 9.5% with all 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 14.2%, while the Utilities sector was the bottom performer, rising 3.9%.
On the data front, the headline CPI for March is expected to show price increases of 0.1% month-over-month (MOM) and 2.5% year-over-year (YOY) versus the prior month’s increases of 0.2% and 2.8%, respectively. Meanwhile, core CPI is expected to show price increases of 0.3% MOM and 3.0% YOY, versus the prior month’s increases of 0.2% and 3.1%, respectively. Data on March’s average hourly and weekly earnings is also scheduled for release. Initial jobless claims for the week ending April 5 are expected to come in at 223,000 versus the prior week’s 219,000, while continuing claims for the week ending March 29 are expected to fall to 1.88 million from the prior week’s 1.90 million. The U.S. federal budget balance for March is expected to show a deficit of $130.0 billion versus the prior month’s $236.6 billion.
Across the pond, European stocks are higher in mid-day trading following news that the European Union will delay their retaliatory tariffs against the U.S.’s prior metal tariffs for 90 days.
Overnight in Asia, stocks were higher following China’s CPI showing 0.1% YOY deflation in March, while the country’s Producer Price Index (PPI) fell more than expected to 2.5% YOY deflation. Meanwhile, China’s top officials are scheduled to meet in Beijing today to consider additional stimulus measures in response to the heavy U.S. tariffs. Japan’s PPI increased by 4.2% YOY in March, accelerating compared to the prior month’s revised 4.1% YOY increase.
In FOREX trading, the dollar is lower following recent tariff developments and ahead of today’s U.S. CPI data release.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.2% lower at $60.98/barrel following the escalating U.S.-China trade war.
In the metals complex, gold is 1.5% higher at $3,103.40/ounce following a weakening dollar.