U.S. stock futures fell on Wednesday as investors absorbed the gains in stocks. report President-elect Donald Trump is reportedly considering declaring a national economic emergency to pave the way for proposed tariffs.
S&P 500 futures (ES=F) and tech-heavy Nasdaq 100 futures (NQ=F) each fell about 0.3%, reversing pre-market gains. Dow Jones Industrial Average futures (YM=F) fell 0.2%.
Meanwhile, the 10-year US Treasury yield (^TNX) rose to around 4.72%, remaining near an eight-month high.
President Trump is counting on emergency powers to provide a legal basis for his proposed large and widespread tariffs. CNN reported. The news rattled markets that were already wary of President Trump’s economic surprises, bracing for a wave of policy moves and executive orders as Inauguration Day approached.
Investors are closely monitoring the economic outlook, looking for changes in the likelihood that the pace of interest rate cuts will slow this year. The upcoming release of new jobs data or Federal Reserve Board minutes could reset bets.
Stocks sold off and benchmark U.S. Treasury yields soared on Tuesday as service sector and labor market data reignited concerns about stubborn inflation. The data weighs heavily on suggestions that Fed officials will cut rates more slowly than expected, with traders currently seeing less than a 50% chance of any easing before June. According to the CME FedWatch tool.
Some analysts believe that the market could turn the release of positive economic data into a negative view, spurring “a rise in long-term interest rates.”
ADP updates on private payrolls for December and minutes of the latest meeting of Fed policymakers are expected to be released later Wednesday. The figures will feed into expectations for the key December jobs report to be released on Friday.
Meanwhile, Nvidia (NVDA) stock edged higher as the company struggled to recover from a crash that wiped out $220 billion in market capitalization.
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