Wall Street Set for Gains Amid Trade War Turmoil

Wall Street is expected to open higher on Friday, though the anticipated gains are insufficient to offset the substantial losses experienced over recent weeks due to a growing trade conflict between the U.S. and other nations. Futures for the S&P 500 are up by 0.8%, while the Dow Jones Industrial Average has increased by 0.5%. The tech-heavy Nasdaq is seeing a rise of 1% in premarket trading.

Leading the premarket gains are Semtech, DocuSign, and Ulta Beauty. Semtech, a semiconductor manufacturer, surged by 13% after exceeding fourth-quarter expectations and providing strong future guidance. Meanwhile, DocuSign saw a rise of over 10% following its positive earnings report that beat both profit and revenue forecasts. Ulta Beauty, a retailer specializing in beauty products, rose by 6.6% after significantly surpassing analysts' profit predictions and offering optimistic guidance for the year ahead.

On Thursday, the market experienced a deeper sell-off, as President Donald Trump's escalating trade war pushed the S&P 500 down more than 10% from its recent record high. This decline has triggered a correction, a term used by professional investors to describe a drop of this magnitude. The S&P 500's 1.4% fall on Thursday marked its first correction since 2023.

The Nasdaq composite has faced even greater challenges, plummeting over 13% since mid-February. By the close of trading on Thursday, the index had dropped more than 5% for the week, largely influenced by significant losses from major technology companies, including Apple, which is experiencing its worst week in five years. Although Apple's stock saw a slight increase of less than 1% in premarket trading, it has suffered losses nearing 12% throughout the week.

Market analysts indicate that traders are preparing for another round of unpredictable market movements, acknowledging that certainty is currently a rare commodity in this environment. The recent losses follow Trump's announcement of potential 200% tariffs on Champagne and other alcoholic beverages from Europe unless the European Union retracts a tariff on American whiskey imposed as a countermeasure to U.S. tariffs on European steel and aluminum. Even favorable economic reports from the U.S. have not been enough to halt the market's decline.

Adding to the uncertainty is the possibility of a partial government shutdown if Congress fails to pass its annual appropriations bill. A Senate vote on this resolution, which was previously approved by the House, is expected to take place on Friday.

In European markets, Germany's DAX index rose by 1.8%, while France's CAC 40 climbed 1%. The UK's FTSE 100 increased by 0.6%. In Asia, Hong Kong's benchmark index surged by 2.1% to close at 23,959.98, and the Shanghai Composite index jumped by 1.8% to reach 3,419.56. The National Financial Regulatory Administration of China issued a notice directing financial institutions to promote consumer finance, enhance credit card usage, assist struggling borrowers, and improve transparency in lending practices. Economists assert that increased consumer spending is vital for revitalizing China's economy, although many advocate for broader reforms, including wage increases and improved social welfare.

In Japan, the Nikkei 225 rose by 0.7% to 37,053.10, while South Korea's Kospi index dipped by 0.3% to 2,566.36. Australia's S&P/ASX 200 increased by 0.5% to 7,789.70, and Thailand's SET index saw a boost of 1.2%. Taiwan's Taiex index remained nearly unchanged.