US equity futures recorded a decline on Thursday as traders reacted to the shifting trade policies originating from the White House. The futures for the Dow Jones Industrial Average fell by 0.9%, while S&P 500 futures dropped 1.2%, and Nasdaq futures exhibited a decrease of 1.4%. This downturn follows President Donald Trump's implementation of new tariffs affecting the nation’s three primary trading partners, which came into force earlier this week.
The White House had announced a temporary one-month pause on North American tariffs specifically for the automotive sector, indicating a potential strategic shift in policy. Furthermore, reports suggest that the administration is considering exceptions for the agricultural industry, highlighting ongoing negotiations and potential impacts on various sectors.
In the commodities market, oil prices saw an uptick, with the front-month global benchmark for North Sea Brent crude rising by 0.7%, reaching $69.78 per barrel. Additionally, US West Texas Intermediate crude experienced a 0.9% increase, priced at $66.88 per barrel. Key economic indicators are set to be released, with the US trade deficit forecasted to expand to $128.3 billion in January, a significant rise from the previous month's $98.4 billion.
Moreover, new unemployment claims are projected to decrease to 234,000 for the week ending March 1, a drop from 242,000 the week before. Analysts do not anticipate any revisions to the preliminary estimate for fourth-quarter nonfarm productivity, which is expected to remain at an annual growth rate of 1.2%, according to forecasts aggregated by Bloomberg.
The financial markets continue to await further clarity on economic policies and data presentations that could influence trading strategies moving forward..