Stocks Set to Open Lower Amid Tariff Uncertainty, Nvidia Earnings and U.S. Economic Data Awaited

Economic Data - The core PCE price index rose by +0.4% month-over-month and +3.0% year-over-year in December, exceeding expectations of +0.3% and +2.9% respectively [1] - The U.S. economy grew at a +1.4% annualized rate in Q4, which was below the expected +2.8% [1] - Personal spending in December increased by +0.4% month-over-month, aligning with expectations, while personal income grew by +0.3% month-over-month, also in line with expectations [1] - The University of Michigan's consumer sentiment index for February was revised down to 56.6, weaker than the expected 56.9 [1] Stock Market Performance - Wall Street's major equity averages closed higher, with Alphabet (GOOGL) leading the Nasdaq 100 with a gain of over +4% and Amazon.com (AMZN) rising more than +2% in the Dow [2] - Chip stocks performed well, with Lam Research (LRCX) up over +3% and Analog Devices (ADI) advancing more than +2% [2] - Corning (GLW) surged over +7% after UBS raised its price target from $125 to $160 [2] - Cybersecurity stocks faced declines, with Cloudflare (NET) down more than -8% and CrowdStrike Holdings (CRWD) sliding over -7% [2] Upcoming Earnings Reports - Nvidia is set to report its fourth-quarter and fiscal-year results, with expectations that it will beat Wall Street's forecasts [3][7] - Other notable companies releasing quarterly results include Home Depot (HD), The TJX Companies (TJX), Lowe's (LOW), Salesforce (CRM), Intuit (INTU), Dell Technologies (DELL), and CoreWeave (CRWV) [7] Federal Reserve Insights - Atlanta Fed President Raphael Bostic indicated that maintaining mildly restrictive rates is prudent to bring inflation back to the 2% target [6] - Dallas Fed President Lorie Logan expressed cautious optimism regarding the current monetary policy stance [6] - U.S. rate futures indicate a 95.9% chance of no rate change and a 4.1% chance of a 25 basis point rate cut at the March Fed meeting [6] Trade Policy Developments - President Trump announced an increase in global tariffs from 10% to 15%, following a Supreme Court ruling [4] - The new tariffs are permitted to remain in effect for 150 days under Section 122 of the 1974 Trade Act [4] - Uncertainty regarding U.S. trade policy is contributing to market volatility, compounded by concerns over AI disruption and U.S.-Iran tensions [4] International Market Reactions - The Euro Stoxx 50 Index fell by -0.21% amid uncertainty over U.S. trade policy, with technology and industrial stocks underperforming [12] - German business morale improved more than expected, indicating signs of recovery in the German economy [12] - Italy's annual inflation rate eased to 1.0% in January, as confirmed by ISTAT [12]