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Dow futures steady amid Trump’s new tariff proposals

Futures Steady

Futures Steady

U.S. stock futures were little changed early Wednesday after the S&P 500 reached a record high in the previous trading session. Investors are closely monitoring concerns about persistent inflation and President Donald Trump’s latest tariff proposals. President Trump suggested imposing a 25% tariff on imported autos, semiconductors, and pharmaceuticals on Tuesday, which could lead to increased market volatility.

While these plans might create winners and losers in those industries, they are narrower than the initially proposed across-the-board measures. Investors are awaiting the release of the January housing starts report at 8:30 a.m. ET and the minutes from the latest Federal Reserve meeting at 2 p.m. ET. The Federal Reserve kept interest rates unchanged but expressed concern over the U.S. inflation outlook.

Bank of America upgraded Capital One to a “buy” from “neutral,” citing improving credit trends and revenue synergies from a pending acquisition. Analyst Mihir Bhatia set a new price target of $235, suggesting a potential 15.9% rise above Tuesday’s closing price. Capital One shares climbed 1.6% in Wednesday’s premarket trading.

Jefferies analyst Jonathan Matuszewski initiated coverage of Stanley Black & Decker with a “buy” rating and a $103 price target, implying an 18.3% upside. Matuszewski anticipates multiple expansions in the second half of the year as investors focus on the company’s margin expansion and organic growth.

Market reaction to Trump’s tariffs

Asia-Pacific stocks traded mixed on Wednesday following Trump’s tariff proposals. Japan’s benchmark index ended the day 0.27% lower, while South Korea’s index rose 1.7%. Mainland China’s CSI 300 climbed 0.7%, while Hong Kong’s index fell 0.14%.

Indian stocks traded flat, and Australia’s index dropped 0.73%. European stock markets opened mixed on Wednesday. Germany’s index gained 0.28%, France’s index fell 0.12%, and the U.K.’s index dipped 0.26%.

Notable market movers include Meta, which saw its shares dip 2.76% on Tuesday, snapping a 20-day winning streak. Howard Hughes Corp shares slipped about 5% after Bill Ackman’s Pershing Square increased its stake, proposing to acquire 10 million new shares at $90 each. Bumble’s stock dropped nearly 13% after issuing disappointing first-quarter guidance, and Cadence Design Systems’ shares fell about 5% despite exceeding fourth-quarter earnings and revenue forecasts.

Stock futures opened slightly higher on Tuesday evening, with the major indices gaining less than 0.1%. Investors are closely monitoring the market’s reaction to Trump’s tariff proposals, upcoming economic data, and the Federal Reserve’s stance on interest rates.

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