Dow, S&P 500 Futures Decline; Nasdaq Futures Edge Up; Market Reacts to Tariff Announcement; Key Movers Include Nvidia, Broadcom, Kellogg, Delta

U.S. Stock Futures Update

U.S. stock futures indicated mostly lower openings on Thursday. This followed President Donald Trump's announcement of new tariffs, which impacted the previous day's rally led by Nvidia.

• Dow Jones Industrial Average futures declined by 35 points, or 0.1%.
• S&P 500 futures fell by less than 0.1%.
• Nasdaq 100 futures increased by less than 0.1%.

Tariff Announcement

President Trump stated in a letter on Wednesday that the U.S. will implement a 50% tariff on Brazilian goods starting August 1. This is the highest tariff rate announced in recent communications to various national governments. The White House cited legal actions involving Brazil's former President Jair Bolsonaro and U.S. technology companies as reasons for the measure.

Market Performance

The potential market decline follows the Nasdaq Composite reaching a record closing high on Wednesday. This was driven by Nvidia, which became the first company to reach a market value of $4 trillion, surpassing Apple and Microsoft.

"For everything else that’s happening right now, from tariffs to fiscal fears, AI is the great hope for US exceptionalism to return. The rally also got a further boost as lower bond yields meant that fears eased about the fiscal situation," wrote Deutsche Bank analyst Jim Reid in a research note.

Treasury and Bond Market

The U.S. Treasury sold $39 billion of 10-year notes on Wednesday afternoon, with investors accepting a yield of 4.362%. This contributed to a rally in bonds, even though minutes from the Federal Open Market Committee's June meeting indicated that officials were divided on the timing of potential interest rate cuts.