Stocks Decline as Business Outcomes Add to Tariff Dread – Europe Market Wrap

Global markets fell as a slew of disappointing company reports raised new fears in a market already dealing with the threat of a catastrophic US trade war.

S&P 500 futures fell approximately 0.4%. FedEx fell 8% in pre-market trade after reducing earnings expectations as inflation and uncertain demand for shipments weighed on the delivery company’s bottom line. Nike’s stock fell almost 6% as it reported declining profitability, owing in part to US tariffs on Chinese and Mexican exports.

The disappointing numbers add to fears about a deteriorating global economic picture, particularly ahead of Trump’s April 2nd deadline for a series of broad retaliatory tariffs. While the Fed has suggested that it sees flexibility to cut rates, many economists believe that tariffs’ inflationary impact may impede central banks’ ability to support faltering economies.

Risk-off sentiment spread, while Treasury yields fell. Gold prices remained around record highs after numerous banks increased their expectations for the haven asset. According to BofA data, gold funds saw their largest four-week inflow ever.