Stocks Down Pre-Bell as Tariffs Continue to Weigh on Market Sentiment; Traders Await Jobs Data

07:27 AM EDT, 04/04/2025 (MT Newswires) -- US equity futures were pointing to further losses on Friday amid concerns about the impact of President Donald Trump's reciprocal tariffs on global economic growth, while investors await the national employment situation report for March.

Standard & Poor's 500 and the Dow Jones Industrial Average fell 2.1% each in premarket activity, while the Nasdaq was off 2.3%. The indexes closed the previous session in the red, with the Dow Jones Industrial Average losing nearly 1,700 points.

Stifel expects the S&P 500 to consolidate near 5,500 in the remaining second quarter of the year, down 10% from the all-time February high of 6,144. "We see no major equity index upside absent a sharp reversal by the White House, which we do not expect," Stifel said in a Friday client note.

Trump reportedly said Thursday that he is open to negotiating a reduction in tariffs if other countries are able to offer something "phenomenal" in return, according to several media publications. The Trump administration on Wednesday announced duties on imports from several countries, including China and Japan.

The nonfarm payroll report for last month is scheduled for an 8:30 am ET release. Government data is expected to show that the US economy added 140,000 nonfarm jobs in March, which would mark a drop from the 151,000 gain posted for the month prior, according to a Bloomberg poll.

On Thursday, two surveys regarding the US services sector yielded mixed results, as the Institute for Supply Management's data showed the expansion losing steam more than projected, while S&P Global (SPGI) indicated accelerating growth.

A key market focus on Friday will be a series of speeches from key Federal Reserve officials, beginning with Chair Jerome Powell at 11:25 am. Fed Governor Michael Barr is scheduled to speak at 12 pm, while Governor Christopher Waller's remarks are due at 12:45 pm.

US Treasury yields moved down in premarket action, with the two-year rate sliding 20 basis points to 3.52% and the 10-year rate falling around 17 basis points to 3.89%.

West Texas Intermediate crude oil fell 5.3% to $63.44 a barrel. Eight members of the Organization of the Petroleum Exporting Countries and its allies said Thursday they will increase oil output in May faster than expected. The weekly Baker Hughes domestic oil-and-gas rig count posts at 1 pm.

Gold was down slightly at $3,122 per troy ounce. Bitcoin rose 1.2% to $83,030.

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