Stocks Decline After Nvidia, European Futures Drop: Markets Wrap
(Bloomberg) — European equity index futures are pointing to a weak start as investors parse the latest tariff announcements from US President Donald Trump and after earnings from Nvidia Corp. failed to impress.
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The Euro Stoxx 50 contract declined as much as 0.9% after Trump said that his administration would impose tariffs of 25% on the European Union. The president also said that previously announced levies on Mexico and Canada would come into force on April 2. Asian equities fell.
Trump’s comments were at times contradictory and sowed confusion as the tariffs on US neighbors were to take effect from next month. Nvidia shares fell in after-hours trading as the chipmaker delivered good-but-not-great quarterly numbers, leaving investors — who have become accustomed to blowout results — disappointed.
“It’s just a relief that nothing went wrong, but not a sustainable push higher that the market needed from Nvidia,” said Charu Chanana, chief investment strategist at Saxo Markets. “With Nvidia lacking the spark that it usually brings, probably US stocks will continue to lack a near-term driver and the rotation trade to China, Europe could find more runway.”
Nvidia’s results are “not enough to address and calm” the concerns around geopolitics, tariffs and the shifting landscape in AI trade, she said.
New research suggests Trump’s latest tariffs on imports from China may hit the American economy more than official US trade data indicate.
“The somewhat contradictory statements from the administration around the timing and extent of tariffs is keeping investors off-sides,” said Marvin Loh at State Street. “The debate continues as to whether the president will again delay and water down his plans, or if this is the start of the aggressive rhetoric.”
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A gauge of the dollar and US stock futures rose. Treasuries slipped. They had rallied on Wednesday, sending the US 10-year yield to its lowest level since the middle of December. Investors in US government bonds are starting to bet the Federal Reserve will soon need to pivot from worrying about sticky inflation to fretting about slowing economic growth.
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