US equity futures experienced a downturn ahead of Thursday's market opening as traders closely observed the shifting trade policies emanating from the White House. The futures for the Dow Jones Industrial Average fell by 0.9%, S&P 500 futures dropped by 1.1%, and Nasdaq futures saw a decline of 1.5%.
In a significant development, President Donald Trump's newly imposed tariffs on the country's primary trading partners came into effect this week. The White House made headlines on Wednesday by announcing a one-month hiatus on North American tariffs specifically for automakers. Additionally, there are ongoing discussions regarding potential carve-outs aimed at the agriculture sector, which could impact various stakeholders across the country. Moreover, oil prices exhibited an upward trend, with the front-month global benchmark North Sea Brent crude rising by 0.3% to reach $69.51 per barrel.
Meanwhile, US West Texas Intermediate crude recorded a 0.4% increase, settling at $66.57 per barrel. The US trade deficit, revealed at 8:30 am ET, widened considerably to $131.38 billion in January, up from $98.06 billion in December. This figure surpassed predictions compiled by Bloomberg, which had estimated a $128.8 billion gap.
In labor market news, new unemployment claims saw a decline to 221,000 for the week ending March 1, down from 242,000 the previous week. This figure was in contrast to estimates suggesting a smaller drop to 233,000. Meanwhile, the preliminary reading for Q4 nonfarm productivity was revised upwards to reflect a 1.5% annual growth, up from the initial 1.2% reading. Examining global market performance, Japan's Nikkei index closed 0.8% higher, Hong Kong's Hang Seng index surged by 3.3%, and China's Shanghai Composite index finished 1.2% higher.
In contrast, the UK's FTSE 100 registered a decline of 1.1%, while Germany's DAX index experienced a modest increase of 0.2% during Europe's early afternoon trading session. In the equities market, shares of Visionary Holdings (GV) witnessed a remarkable 77% uptick ahead of the bell, marking an extension of Wednesday's rally after the company announced it had secured a financing consent letter worth $1 billion in collaboration with the Alfardan Group based in Qatar. On the flip side, MongoDB (MDB) found itself in a bearish position as its stock fell by 19% following the release of fiscal 2026 guidance that fell short of analysts' expectations..