Market Turmoil Amid Tariff Tensions and Inflation Findings

U.S. stock futures stabilised after volatile sessions, amid concerns over Trump's tariffs and awaited inflation reports. The European Commission plans retaliatory levies, affecting companies like Ford. The tech sector struggled, raising fears of economic downturn. With key data pending, analysts caution of possible recession risks.

U.S. stock index futures saw an uptick on Wednesday following tumultuous sessions, as investors evaluated the impact of President Donald Trump's tariffs on metal imports and awaited crucial inflation data. The tariffs, a 25% duty on steel and aluminum, took effect amid vows of retaliation from the European Commission, escalating trade tensions between the U.S. and the EU.

American automotive and manufacturing giants, including Ford and Honeywell, remained stable in premarket trading despite concerns over supply chain costs. Analysts warn that Trump's erratic tariff strategy might trigger capital flight from Wall Street, with potential inflation fueling fears of a looming economic recession.

In the technology sector, the Nasdaq experienced a correction last week, intensifying worries about broader economic instability. The market remains on high alert as the February Consumer Price Index is set for release, poised to provide key insights into ongoing inflation trends. Meanwhile, interest rate futures suggest the Federal Reserve may maintain existing borrowing costs, though potential economic weaknesses could prompt rate cuts.

(With inputs from agencies.)