US Futures Decline as Attitude Turns to Trade War Damage – Europe Market Wrap

Wall Street’s elation gave way to dread, with a drop in US stock market futures, oil, and the currency indicating concern that the trade war will cause long-term damage to the American economy.

S&P 500 futures fell 1.8%, predicting a reversal from Wednesday’s nearly 10% gain. The Dollar declined for the third consecutive day. Brent crude fell below $64 per barrel. Bonds rose, while investors sought protection in gold, the Swiss franc, and the Yen.

While investors hailed Trump’s promise to suspend certain tariffs, which boosted US equities to a historic one-day surge, traders are now focussing on the implications of an economic slump and protracted volatility. Consumer inflation data is coming later today, and a Treasury auction of 30-year bonds will be closely monitored for any signs of concern about owning US debt.

Meanwhile, European and Asian markets rose as investors caught up with Wall Street’s bounce the day before. The Stoxx 600 Index was up more than 5%, the biggest increase since 2020.