U.S. stock index futures dipped early Wednesday, signaling a cautious approach from investors as they await President Trump’s anticipated tariff announcement. Market sentiment remains subdued as participants brace for potentially significant policy changes.

Market Activity Overview

At 04:30 ET (09:30 GMT), the following futures were reported:

• Dow Jones Futures: Down 120 points (0.3%)

• S&P 500 Futures: Fell 20 points (0.4%)

• Nasdaq 100 Futures: Dropped 90 points (0.5%)

These declines came after a session that saw the S&P 500 gain 0.4% and NASDAQ Composite increase by 0.9%, while the Dow remained mostly unchanged. Despite these fluctuations, the overall sentiment heading into the market remains cautious as traders await more clarity on tariff policies.

Expectations Ahead

President Trump plans to announce new reciprocal tariffs at 4:00 p.m. ET today. The anticipated tariffs—labeled “Liberation Day” by Trump—will be effective immediately. Here are the expected highlights:

• Broad Scope: Tariffs will likely target multiple U.S. trading partners.

• Sector-Specific Measures: A 25% tariff on auto imports will commence on April 3.

• Policy Justification: These tariffs aim to rectify existing trade imbalances, bolster government revenues, and reshore manufacturing jobs.

Analysts at UBS suggest that these tariffs could affect around 15 to 20 key trading partners, imposing an average duty of 15%. Uncertainty around the specifics and possible retaliatory actions has kept markets in a state of caution.

Keep Monitoring the Market

As cautious sentiments persist, traders and investors are keenly observing upcoming developments, especially the tariff announcement, as it could significantly shift market dynamics and influence global trade relations.