U.S. stock futures declined early Wednesday, pressured by mounting uncertainty around President Donald Trump’s upcoming tariff rollout and a disappointing delivery report from Tesla. Futures tied to the S&P 500 fell 1%, Nasdaq-100 futures slipped 1.2%, and Dow Jones Industrial Average futures dropped over 300 points, reflecting broad-based caution among traders.
The pullback follows Tuesday’s late-session rebound, which saw the S&P 500 and Nasdaq notch modest gains while the Dow closed marginally lower. Traders are now positioning for potential volatility tied to the White House’s proposed “reciprocal tariffs,” which are set to take effect immediately. Although the administration has not finalized the tariff rates, reports suggest a ceiling could be imposed with the potential for rates up to 20% on most imports.
Treasury Secretary Scott Bessent told lawmakers the initial tariff levels will act as a cap, providing room for future negotiation. Despite these clarifications, the lack of specifics has only deepened market unease, particularly with risk assets already weakened by recent drawdowns. The S&P 500 has posted losses in five of the past six weeks.
Tesla shares slumped nearly 4% in premarket trading after the electric vehicle maker fell short of delivery expectations. The company reported 336,000 vehicle deliveries in the first quarter, below consensus forecasts of 360,000 to 370,000. The miss underscores execution concerns and contributes to broader tech weakness, dragging on Nasdaq futures.
Traders also parsed mixed labor market data. The ADP report showed 155,000 private payroll additions in March, comfortably above the 120,000 expected and a marked improvement from February’s 77,000. However, job openings dropped more than anticipated in February, falling to 7.57 million versus a 7.6 million estimate. This divergence hints at a softening demand for labor, even as hiring improves slightly.
Business sentiment is deteriorating. According to Apollo’s chief economist Torsten Slok, both CEO and CFO confidence levels have fallen sharply. A CEO Confidence Index now shows the weakest outlook in over a decade, with CFOs expressing growing concern about their company prospects and broader economic conditions.
With tariff announcements expected Wednesday, traders are bracing for potential headline-driven volatility. Uncertainty around trade policy, coupled with corporate caution and mixed economic data, may keep equities under pressure in the near term. Focus will turn to Friday’s nonfarm payrolls report for confirmation on labor market resilience and clues on Federal Reserve policy direction.
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James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.