Tariff Tensions: U.S. Stocks Take a Hit

U.S. stock futures decline as investors brace for President Trump's 25% tariff on auto imports. Fresh tariff plans heighten market tensions, with auto stocks suffering. Key inflation data and Federal Reserve speeches are expected to influence investor sentiment, amid a backdrop of technical corrections in major indexes.

U.S. stock index futures faced downward pressure on Friday as investors reacted to the potential introduction of additional tariffs by President Trump. The impending 25% tariff on auto imports, expected to take effect next week, has sent considerable ripples through global markets, causing a backlash across political and industry spheres.

The automotive sector bore the brunt of this market turbulence, registering significant losses. In anticipation of further tariff measures scheduled for April 2, industry giants such as General Motors and Ford reported declines in premarket trading. President Trump suggested that these impending measures could diverge from the typical tit-for-tat approach previously promised.

All eyes are set on the U.S. Personal Consumption Expenditure data due at 8:30 a.m. ET, which serves as a key inflation indicator for the Federal Reserve. Concurrently, investors noted a rise in gold prices amid ongoing trade war uncertainties, spurred by Trump's tariff policy. Both the S&P 500 and Nasdaq have retracted 10% from previous highs, entering a technical correction phase, though some recovery was observed as quarter-end approaches.

(With inputs from agencies.)