US stock futures drift lower as Trump tariff fears weigh; PCE data awaited

U.S. stock index futures fell slightly on Thursday evening as risk appetite remained fragile in the face of President Donald Trump’s trade tariffs, with focus turning to key upcoming inflation data.

Futures weakened after a negative session on Wall Street, as Trump imposed 25% tariffs on automobile imports and threatened even more duties on April 2, when he plans to impose reciprocal tariffs against a host of major U.S. trading partners.

Sustained weakness in heavyweight technology stocks also weighed on Wall Street, with market darling Nvidia sliding for a third straight session on growing speculation over a supply glut in the artificial intelligence server and data center market.

S&P 500 Futures fell slightly to 5,737.0 points, while Nasdaq 100 Futures fell 0.1% to 19,973.25 points by 19:56 ET (23:56 GMT). Dow Jones Futures edged down to 42,589.0 points.

Focus is now on PCE price index data- the Federal Reserve’s preferred inflation gauge- which is due on Friday.

Trump auto tariffs dent Wall Street
Wall Street indexes sank for a second consecutive session, remaining close to recent six-month lows after Trump announced 25% tariffs on all foreign-made automobiles.

Major U.S.-listed automakers including General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Stellantis NV (NYSE:STLA), and Toyota Motor Corporation (NYSE:TM) fell sharply on this announcement, with car prices now set to increase and further undermine demand.

Tesla (NASDAQ:TSLA) rose marginally on bets that it will be relatively less impacted by the tariffs, given that it manufactures all of its U.S.-sold vehicles domestically. But the company still imports components that will be subject to Trump’s tariffs.

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Trump said the tariffs will take effect from April 2- a date he has constantly touted as “liberation day.” The U.S. President plans to announce sweeping reciprocal tariffs, and could also impose duties on other key sectors.

Uncertainty over Trump’s tariffs was a key weight on Wall Street over the past few months, as investors and policymakers fretted over their potential impact on trade and the economy. Trump and his cabinet have warned of some economic ructions as he carries out his agenda.

The S&P 500 fell 0.3% to 17,804.03 points, while the NASDAQ Composite fell 0.5% to 17,804.03 points. The Dow Jones Industrial Average fell 0.4% to 42,399.70 points.

Nvidia falls for a third straight day amid AI data center doubts
NVIDIA Corporation (NASDAQ:NVDA) fell 0.3% in aftermarket trade after clocking three consecutive sessions of losses.

The stock, and other chipmakers with exposure to data center and AI infrastructure, were rattled by growing concerns of a supply glut in the sector.

These came to a head this week after TD Cowen released a note stating that Microsoft- a major investor in AI- had canceled several data center leases in the U.S. and Europe. TD flagged some concerns over oversupply, with the note coming just days after Alibaba (NYSE:BABA) Chair Joe Tsai also warned of a data center bubble in the U.S.

Beyond Nvidia, other AI server makers Super Micro Computer Inc (NASDAQ:SMCI) and Broadcom Inc (NASDAQ:AVGO) slid 6.3% and 4.1% on Thursday.

PCE data awaited for more rate cues

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Focus was now squarely on upcoming PCE price index data, which is likely to factor into the Fed’s plans for interest rates.

Core PCE data is expected to read above the Fed’s 2% annual target, indicating that inflation remains sticky and giving the central bank little impetus to cut rates.

The Fed had kept rates unchanged last week, and signaled few imminent changes amid increased uncertainty over Trump’s economic policies.