S&P Futures Muted After New Trump Tariffs, U.S. PCE Inflation Data in Focus

Economic Data - U.S. Q2 GDP growth was revised higher to +3.8% (q/q annualized), exceeding expectations of +3.3% [1] - U.S. durable goods orders rose unexpectedly by +2.9% m/m in August, against expectations of -0.3% m/m [1] - Core durable goods orders, excluding transportation, increased by +0.4% m/m, surpassing expectations of -0.1% m/m [1] - Existing home sales fell by -0.2% m/m to 4.00 million in August, slightly better than the expected 3.96 million [1] - Initial jobless claims decreased by -14K to a two-month low of 218K, compared to the expected 233K [1] Stock Market Performance - Wall Street's major indices closed lower, with CarMax (KMX) dropping over -20% after disappointing Q2 results [2] - Chip stocks, including Arm Holdings (ARM) and ON Semiconductor (ON), fell more than -2% [2] - Oracle (ORCL) declined over -5% following a Sell rating initiation by Rothschild & Co. Redburn [2] - Intel (INTC) surged over +8%, becoming the top gainer on the S&P 500 and Nasdaq 100 due to potential investments or partnerships with Apple and TSMC [2] Tariff Announcements - President Trump announced new sectoral tariffs effective October 1st, including a 100% tariff on branded or patented pharmaceuticals unless manufactured in the U.S. [3] - Heavy trucks will face a 25% tariff, kitchen cabinets and bathroom vanities a 50% duty, and upholstered furniture imports a 30% tax [3] Federal Reserve Insights - Fed officials expressed concerns about the economy, with some advocating for quick interest rate cuts due to inflation nearing the 2% target [5] - Rate futures indicate an 87.7% chance of a 25 basis point rate cut at the October FOMC meeting [6] European Market Reactions - Euro Stoxx 50 Index rose +0.62% as investors reacted to U.S. tariffs and awaited U.S. inflation data [10] - The European Commission secured a 15% ceiling on U.S. pharmaceutical tariffs [10] - German business daily reported potential tariffs of 25% to 50% on Chinese steel and related products [10] Japanese Market Developments - Japan's Nikkei 225 Index closed lower, influenced by U.S. tariffs and losses on Wall Street [13] - Pharmaceutical stocks in Japan declined following the announcement of a 100% tariff on U.S. imports [13] - Core inflation in Tokyo held steady but remained above the Bank of Japan's target, indicating potential for future interest rate hikes [13][14]