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US Stocks Open Slightly Lower as Market Focuses on Trade War Developments
S&P 500 index +0.07%
NASDAQ +0.37%
Dow Jones Industrial Average +0.17%
Alphabet Inc. Class A +1.14%
NVIDIA Corporation +2.28%
S&P 500 index SPX | 5890.45 | +0.07% |
NASDAQ IXIC | 19080.23 | +0.37% |
Dow Jones Industrial Average DJI | 42211.01 | +0.17% |
Alphabet Inc. Class A GOOGL | 161.35 | +1.14% |
NVIDIA Corporation NVDA | 132.89 | +2.28% |
Market Volatility and Weekly Gains
On Friday, April 11, US stocks opened slightly lower amid a week of significant market volatility. Despite the fluctuations, the major indices are on track to record weekly gains.
As of 09:43 AM, ET (or 04:43 PM in Riyadh), the broad-based S&P 500 index(SPX.US) gains 7 points or 0.13% to 5,275, the tech-heavy NASDAQ(IXIC.US) ticks up 90 points or 0.55% to 16,478, and the blue-chip Dow Jones Industrial Average(DJI.US) ticks up 19 points or 0.05% to 39,613.
Throughout the week, the S&P 500 has risen by 3.8%, potentially marking its best weekly performance since November. The Nasdaq has gained 5.1%, and the Dow has increased by 3.3%. However, since the White House announced reciprocal tariffs on April 2, the S&P 500 has dropped by 7.1%.
Trade Tensions and Economic Concerns
The market remains focused on the latest developments in the trade war. On Wednesday, President Trump announced a 90-day tariff suspension for most countries, which initially spurred a significant rally. However, the uncertainty surrounding his trade policies continues to weigh on market sentiment. On Thursday, the S&P 500 closed down 3.46%, the Dow fell by 2.5%, and the Nasdaq plummeted by 4.31%.
Michael Wilson, a cross-asset strategist at Morgan Stanley, noted, "This is no longer a normal market adjustment but a violent restructuring of global supply chains."
Investors are also concerned about the potential for a US recession. Argent Capital Management portfolio manager Jed Ellerbroek stated, "Even with reduced tariffs, significant risks remain. The 90-day suspension does not provide certainty for consumers, businesses, or investors."
Economic Data and Corporate Earnings
Economic data released on Friday showed an unexpected decline in the US March Producer Price Index (PPI), which fell by 0.4% due to lower energy costs, marking the largest drop since October 2023. The core PPI, excluding food and energy, decreased by 0.1%, against expectations of a 0.3% rise. This follows Thursday's report of the first monthly decline in the Consumer Price Index (CPI) in five years.
| Event | Actual | Previous | Consensus | Forecast |
|---|---|---|---|---|
| PPI MoM MAR | -0.4% | 0.1% | 0.2% | 0.1% |
| Core PPI MoM MAR | -0.1% | 0.1% | 0.3% | 0.2% |
| Core PPI YoY MAR | 3.3% | 3.4% | 3.6% | 3.5% |
| PPI MAR | 147.464 | 148.045 | - | 148.1 |
| PPI Ex Food, Energy and Trade MoM MAR | 0.1% | 0.4% | - | 0.1% |
| PPI Ex Food, Energy and Trade YoY MAR | 3.4% | 3.5% | - | 3.3% |
| PPI YoY MAR | 2.7% | 3.2% | 3.3% | 3.3% |
Analysts closely monitor these inflation indicators as they will influence the Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index. The PPI report showed favorable trends in categories like airline fares and hospital services.
In corporate news, JPMorgan Chase reported an adjusted first-quarter revenue that exceeded expectations and raised its forecast for full-year net interest income. BlackRock also posted better-than-expected adjusted earnings per share for the first quarter.
Focus on Individual Stocks
Alphabet Inc. Class A(GOOGL.US) introduced its seventh-generation TPU chip, codenamed Ironwood, aimed at challenging NVIDIA Corporation(NVDA.US)'s B200 in the AI inference market.
Tesla Motors, Inc.(TSLA.US) has halted the supply of its Model X and Model S vehicles in China following the imposition of higher tariffs, with these models no longer available for order on Tesla's China website.
Needham downgraded price targets for several tech companies, including Netflix, Inc.(NFLX.US), Alphabet Inc. Class C(GOOG.US), Walt Disney Company(DIS.US), Amazon.com, Inc.(AMZN.US), and Apple Inc.(AAPL.US), citing ongoing market uncertainties.
