Stock market futures for the Dow, S&P 500, and Nasdaq slipped, even as automakers got a break from tariffs.
Wall Street saw mixed reactions on Wednesday as U.S. stock futures dipped despite President Donald Trump’s decision to pause auto tariffs for a month. The move, aimed at easing trade tensions with Canada and Mexico, initially boosted shares of major carmakers but failed to sustain overall market momentum.
Futures tied to the Dow Jones Industrial Average fell 0.1%, while the S&P 500 declined 0.2%. The Nasdaq, which focuses on tech stocks, dropped 0.3% in pre-market trading. This slight downturn came after a volatile trading session ended on a positive note, driven by optimism over the temporary tariff relief.
Trump Delays Auto Tariffs, But Trade Uncertainty Remains
The White House announced a one-month delay in imposing tariffs on cars from Canada and Mexico. This decision followed discussions between Trump, Canadian Prime Minister Justin Trudeau, and executives from General Motors, Ford, and Stellantis. While shares of these automakers rose after the news, they remained steady in after-hours trading.
However, the broader 25% tariffs on Canadian and Mexican imports remain in effect, with no clear resolution in sight. Additional trade levies are scheduled to take effect in April, leaving investors uncertain about the long-term impact on global markets.
Retailers Brace for Tariff Fallout
As trade tensions persist, major retailers are adjusting their 2025 financial forecasts. Investors will be closely watching Thursday’s earnings reports from Macy’s and Kroger, scheduled before the market opens. Later in the day, Costco and Gap will reveal their latest financial performance. These reports could offer fresh insights into how the trade war is affecting consumer demand and retail profitability.
Tech Stocks Take a Hit in After-Hours Trading
Several tech firms experienced sharp movements in after-hours trading. Marvell Technology, a major player in AI-related semiconductors, plunged 15% despite consistently surpassing revenue and earnings expectations in recent quarters. The selloff reflects investor concerns about sustaining high growth rates in the booming AI sector.
Meanwhile, cybersecurity firm Zscaler saw its shares jump 5% after reporting earnings that beat Wall Street estimates by over 10%. The strong performance highlights the growing demand for cybersecurity services in an increasingly digital world.
On the other hand, cloud database company MongoDB disappointed investors, failing to exceed market expectations despite reporting positive earnings. Its shares plummeted 16% post-market close.
Alibaba Surges on AI Breakthrough
Alibaba’s stock soared over 8% after announcing its new AI model, QwQ-32B. The model reportedly matches the capabilities of DeepSeek’s R1 but requires significantly fewer data parameters. This innovation fuelled a 7.5% surge in Alibaba’s Hong Kong shares, marking the biggest intraday gain in nearly two weeks.
Experts believe Alibaba’s advancements in AI, coupled with increasing signs of government support, are helping the company regain investor confidence. The tech giant has added $135 billion to its market value this year as it continues its aggressive expansion in cloud computing and e-commerce.
