Market Jitters: Tariffs and Fed Policy Stir Investor Uncertainty

U.S. stock index futures dipped on Friday as investors weighed the impact of tariffs and FedEx's revised forecasts. Despite concerns, the S&P 500 was poised for gains, while the Fed maintained its stance on potential rate cuts. Tech stocks struggled amid market volatility and global trade tensions.

U.S. stock index futures fell on Friday as traders grappled with tariff impacts, with FedEx revising its full-year forecasts due to persistent economic uncertainty.

FedEx shares fell 7.1% in premarket trading, with UPS also dropping 1.3%. Anxiety over a potential global trade conflict has led to increased caution towards riskier investments.

Investors are awaiting President Donald Trump's expected tariff announcements in early April, but the S&P 500 appears set to break a five-week losing streak with a 1.1% gain, while the Dow could see its best week in over two months.

The Federal Reserve's indication of possible rate cuts has provided some relief to market participants, with two 25 basis point reductions anticipated by year-end.

The Fed also projects slower economic growth and a temporary rise in inflation. Market expectations suggest 70 basis points in rate cuts this year, with varied chances at the Fed's June meeting.

Nike shares experienced a 5.6% drop after a disappointing revenue forecast, while other growth stocks like Meta and Amazon.com saw minor declines.

Attention is focused on upcoming talks from Fed officials to glean further economic insights, while the Nasdaq faces its longest losing streak in years amid tech sector volatility.

(With inputs from agencies.)