US equity futures are facing a downward trend as investors keep a close eye on the developments related to US President Donald Trump's fluctuating trade policy. This comes against the backdrop of emerging reports suggesting a potential slowdown in the US economy. Early indicators show that the Dow Jones Industrial Average futures have fallen by 1.2%, while S&P 500 futures have decreased by 1.5%, and Nasdaq futures have dropped by 1.8%.
On the previous Friday, Trump issued a new warning about the possible implementation of tariffs on Canadian dairy and lumber products, marking the latest in what has been a tumultuous week regarding trade policy announcements. These tariff threats are raising increasing concerns about their potential impact on economic activity within the country.
Trump’s refusal to rule out the possibility of a recession has further exacerbated these worries, as reported by various media outlets. Amidst this uncertainty, oil prices have experienced gains with front-month global benchmark North Sea Brent crude increasing by 0.7% to reach $70.83 per barrel, while US West Texas Intermediate crude rose by 0.8%, bringing it to $67.56 per barrel.
It is notable that no major economic data is expected to be released in the near term. Globally, Japan's Nikkei index finished 0.4% higher, contrasting with Hong Kong's Hang Seng index which closed down by 1.9%, and China's Shanghai Composite which ended 0.2% lower. In Europe, the UK's FTSE 100 index decreased by 0.7%, and Germany's DAX index fell by 1.5% during the early afternoon session.
In the equities market, notable movements were seen with shares of Redfin ($RDFN) surging by an impressive 68% during pre-bell trading, after the company confirmed an acquisition agreement with Rocket Companies ($RKT.US) in a deal valued at $1.75 billion. Checkpoint Therapeutics ($CKPT) also saw a significant rise, with its stock climbing 66% following the announcement of its acquisition by India's Sun Pharmaceutical Industries at a cash price of $4.10 per share, alongside a contingent value right.
Furthermore, Trevi Therapeutics ($TRVI) shares rose by 40% after the company reported positive results from their phase 2a trial for Haduvio, which aimed to treat patients suffering from refractory chronic cough. In contrast, shares of Rocket Companies fell by 14% amidst the ongoing Redfin takeover.
Additionally, Ford ($F) stock saw a decline of 1.6% following a report by the Financial Times revealing that the automaker plans to invest as much as 4.4 billion euros (approximately $4.78 billion) into its German operations to maintain functionality. Market dynamics remain unpredictable as traders continue to react to these developments and weigh their potential impacts on the economy..