Investing.com - U.S. stock futures edge lower on Friday, as markets prepared for the release of key inflation data and digested the fallout from new tariff threats from President Donald Trump. The personal consumption expenditures price index could offer a look into U.S. price pressures, with worries recently rising that Trump’s tariffs could refuel inflationary pressures. Elsewhere, Canadian Prime Minister Mark Carney says no response to the levies is off the table, adding that Canada’s long, mutually-beneficial economic relationship with the U.S. is over.
1. Futures lower
U.S. stock futures pointed lower on Friday, with investors gauging the impact of President Trump’s tariff plans and looking ahead to fresh inflation data.
By 04:28 ET (08:28 GMT), the Dow futures contract had inched down by 113 points or 0.3%, S&P 500 futures had dipped by 21 points or 0.4%, and Nasdaq 100 futures had fallen by 113 points or 0.6%.
The main indices on Wall Street closed lower in the prior session, although they pared back some earlier losses that were sparked by Trump’s announcement on Wednesday afternoon of new 25% automotive tariffs.
Trump said the levies on imported cars and light trucks into the U.S. would take effect on April 3, while further duties on auto parts would kick in on May 3. The pronouncement came ahead of the potential unveiling next week of separate reciprocal tariffs.
“[I]nvestors still [...] have faith that the ultimate trade agenda (once it’s all said and done) won’t be as grim as it seems now,” analysts at Vital Knowledge said in a note to clients.
2. PCE ahead
On the economic calendar, markets will likely be keeping tabs on the release of an inflation metric closely-monitored by Federal Reserve officials.
The headline personal consumption expenditures price index for February is tipped to match the prior month on both a year-on-year and monthly basis.
Meanwhile, the so-called “core” measure is seen accelerating slightly on an annualized basis and equaling January’s pace month-on-month.
The numbers come as fears are growing that Trump’s aggressive trade agenda, which includes levies on both friends and adversaries alike, could refuel inflationary pressures and weigh on broader economic activity.
The rate-setting Federal Open Market Committee opted to leave borrowing costs unchanged at its latest meeting earlier this month due to uncertainty around Trump policy moves, although Fed Chair Jerome Powell said the wider economy remained a “strong” position.
3. Carney on Canadian response to Trump auto tariff threat
Canada will wait until next week before rolling out a response to Trump’s latest tariff threats and no action is yet off the table, according to Prime Minister Mark Carney.
The new automotive sector levies crucially did not include any carve-outs for Canada or Mexico, two countries which play integral roles in the construction of vehicles in North America and had previously signed a trade agreement with Trump during his first term in the White House.
Speaking at a press conference on Thursday, Carney pledged to "fight the U.S. tariffs with retaliatory trade actions that will have maximum impact in the United States and minimum impacts here in Canada."
However, he added that longstanding economic and trade ties between Canada and the U.S. have come to an end, flagging that tough times may lie ahead for Canadians.
Canada’s economy relies heavily on exports to the U.S., leaving it particularly exposed to an escalating trade war with its neighbor.
4. Gold hits record high
Gold prices hit a record high in Asian trade on Friday, extending recent gains, as Trump’s move to announce steep tariffs on the automobile sector heightened safe-haven demand.
Investors were also gearing up for the PCE price index reading later in the day.
The yellow metal was sitting on bumper gains through March, having been boosted by deteriorating risk appetite as markets fretted over Trump’s levies and the threat of a U.S. recession. Geopolitical tensions between Russia and Ukraine, as well as a breakdown in the Israel-Hamas ceasefire has also helped fuel the flight to relative safety of bullion.
Spot gold traded up 0.5% at $3,073.52 an ounce by 04:19 ET and gold futures expiring in May jumped 0.7% to $3,112.74/oz.
5. Oil prices on track for weekly gains
Oil prices eased on Friday, but were still heading for a third consecutive weekly gain thanks in part to a tightening global supply outlook.
At 04:21 ET, Brent crude futures fell 0.5% to $72.99 a barrel, and U.S. West Texas Intermediate crude dropped 0.4% to $69.62 per barrel.
Both benchmarks hit a three-week high on Tuesday, and traded over 2% higher for the week, driven by U.S. threats of tariffs on countries purchasing Venezuelan oil and gas, along with declining U.S. crude inventories.
The crude contracts are up more than 7% since hitting multi-month lows in early March.