U.S. Stock Markets Jitter Over Tariff Concerns Amid Fed Stance

U.S. stock index futures saw early losses as fears over tariff policies emerged after the Fed maintained interest rates. Concerns include potential inflation and economic recession risks. Despite recent gains, major indexes remain down this year. Gold prices hit new highs as investor concerns continue.

U.S. stock index futures faced early setbacks on Thursday with renewed anxiety over U.S. tariff policies taking center stage. Only a day earlier, the Federal Reserve had reaffirmed its plan for rate cuts while warning of an uncertain economic environment, contributing to market volatility.

Despite keeping interest rates unchanged and forecasting two more reductions this year, the Fed's revisions pointing to reduced growth and heightened inflation sowed further uncertainty. This has revived concerns of stagflation, last seen prominently in the early 1980s, due to aggressive trade policies.

While the Dow, S&P 500, and Nasdaq all rose by over 1% in the previous session, broader concerns remain. Investors are watching jobless claims data and the Philadelphia Fed's business index, with Accenture rising on improved revenue forecasts amidst stress on growth stocks like Nvidia and tech giants.

(With inputs from agencies.)