Dow Futures Indicate 3-Day Rally May Come To A Halt With April Consumer Sentiment Data In View, Trump Tariffs Unresolved

synopsis

U.S. stock futures were mixed Friday morning, with investors awaiting consumer sentiment data and digesting earnings from Alphabet amid continued uncertainty over trade relations with China.

The University of Michigan’s consumer sentiment index for April is due after the opening bell. Economists surveyed by Dow Jones expect no change from March’s reading of 50.8.

Markets are coming off a three-day rally, but escalating trade tensions and increasing uncertainty between the US and China have capped momentum. 

The Trump administration signaled this week that it could reduce tariffs on Chinese imports, which currently total 145%. “It will come down substantially. But it won’t be zero,” President Donald Trump said on Tuesday.

However, China dismissed any talk of negotiations. “At present, there are absolutely no negotiations on the economy and trade between China and the U.S.,” Chinese Ministry of Commerce spokesperson He Yadong said Thursday, according to a CNBC translation. 

Despite this, Bloomberg reported on Thursday that Beijing may suspend its 125% tariff on certain U.S. industrial chemicals such as ethane.

Earnings from Google-parent Alphabet helped offset broader uncertainty. The company reported first-quarter results that exceeded consensus estimates and confirmed plans to increase capital expenditures, repurchase additional stock, and raise its dividend. 

Alphabet’s stock rose as much as 5% in pre-market trading.

Index futures reflected a cautious tone. Dow Jones Industrial Average futures declined 0.4%, while S&P 500 futures edged up 0.03%. Nasdaq 100 futures dipped 0.02%, and Russell 2000 futures were down 0.6%. 

Meanwhile, SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) each slipped 0.5%. The SPDR Dow Jones Industrial Average ETF (DIA) dropped 0.4%.

Gold prices (XAU/USD) fell 1.4% to around $3,300 per ounce. Bitcoin (BTC) gained 1.1% over 24 hours, trading near $93,700.

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