OPENING CALL

Stock futures slipped following a historic rally in the prior session, as President Trump instituted a 90-day pause on the bulk of his tariff plans.

Treasury yields also eased .

Following the pause, Goldman Sachs reverted to its previous non-recession baseline forecast for GDP growth, expectating it at 0.5% with a 45% probability of a recession.

However, policy uncertainty is expected to persist for months, while volatility in equity markets could remain high, Julius Baer said.

The outlook for the global equity market over the coming days and weeks will be shaped by three key factors: the evolving U.S.-China trade conflict, upcoming U.S. data and corporate earnings, with U.S. banks kicking off tomorrow, it added.

Meanwhile, Trump's protectionist and volatile trade policy is weakening confidence in the dollar as the world's primary reserve currency, Bank of France Governor Francois Villeroy de Galhau said.

CPI data, due at 0830 ET, may divert some attention away from the tariffs saga.

Stocks to Watch

Amtech Systems cut its outlook, citing weaker demand in its semiconductor fabrication solutions segment. Shares were down 7.3%.

Apple was down 3.4%

CarMax fell 0.8%, and is scheduled to report fourth-quarter earnings before the stock market opens Thursday.

Constellation Brands will sell some of its lower-priced wine brands and undertake an organizational restructuring. Shares fell 3.8%.

Costco Wholesale fell 1.1%.

Delta fell 4.4% in premarket trading while United tumbled 3.9%.

Easterly Government Properties cut its dividend to 18 cents from 26.5 cents. Shares slid 3.3%.

Chipmakers Nvidia and AMD fell 4% and 4.4%, respectively, following rallies on Wednesday.

Tesla declined 4.6%.

United States Steel was down 12% after Trump said it should remain a U.S. company.

Wayfair fell 5.6% in premarket trading, Nike fell 2.7%, and Deckers Outdoor, the maker of Hoka sneakers and Ugg boots, declined 2.8%

Watch For:

Weekly Jobless Claims; CPI for March; World Agricultural Supply & Demand Estimates (WASDE); Economic Club of New York event with Federal Reserve Bank of Chicago President Austan Goolsbee

Today's Top Headlines/Must Reads:

- Trump's Trade Math Ignores a Major Export: American Services

- Why the Trade War Isn't Over for America's Biggest Banks

- The Dollar and the Bond Market's Ominous Message for Trump

MARKET WRAPS

Forex:

The dollar fell, with tariffs still posing a significant hit to the economy, Pepperstone said, adding that the move will also add to concerns about the incoherence of U.S. policy.

The euro rose, and should remain strong as the currency continues to benefit from U.S. "chaos," Commerzbank said.

Sterling trimmed its losses after hitting a 15-month low against the euro in the previous session.

Bonds:

Treasury yields fell, reversing from Wednesday's double-digit increases after Trump announced a tariff pause.

"Despite the calming winds, implied volatility in fixed income markets will likely remain elevated as the administration's next move remains very unpredictable," Danske Bank said

Energy:

Oil prices retreated after a brief rally.

"While the pause offers some relief to markets, there's still plenty of uncertainty on the trade front," ING said.

ANZ said the pause in the most extreme U.S. reciprocal tariffs, which triggered a relief rally this week, doesn't alleviate the ongoing risks of rising trade tensions for the global economy.

Meanwhile, the latest EIA figures showed U.S. crude inventories rose for a second consecutive week to their highest level since July.

Metals:

Gold futures were higher.

If U.S.-China trade tensions persist or extend to other major partners, gold prices could continue pushing toward fresh highs--especially with geopolitical risks, inflation and monetary uncertainty in the picture, XS.com said.

TODAY'S TOP HEADLINES

Tesla Stock Dives After Soaring 23%. There Are 2 Big Trump Tariff Problems for Musk.

Tesla stock was dropping sharply in early trading Thursday after an epic gain on Wednesday.

Investors were relieved that President Donald Trump paused the implementation of some of his import tariffs for 90 days. There is a problem, though. Not much has changed for the car industry.

Inside Walmart's Meeting With Investors on a Day of Tariff Turmoil

DALLAS-As global markets gyrated over tariffs, Walmart executives gathered with their biggest investors in a hotel here this week and worked to project calm.

"We've learned how to manage through turbulent periods," Chief Executive Doug McMillon told the group Tuesday, before they hopped into vans for a tour of local warehouses and returned the next day for hours of presentations.

Costco's March Was Strong. Tariff Uncertainty Didn't Stop Consumers.

March was another strong month for Costco Wholesale, suggesting consumer demand for bulk buying wasn't dampened by macroeconomic uncertainty.

Costco's March sales increased by 8.6% year over year to $25.5 billion, slightly decelerating from February's 8.8% increase but still pointing to strong sales trends for the month.

Sweepstakes Company Publishers Clearing House Files for Bankruptcy

Publishers Clearing House, a direct-to-consumer marketing company known for its Prize Patrol sweepstakes, filed for bankruptcy Wednesday to restructure its balance sheet and shed costs from legacy direct mail and e-commerce businesses.

Chief Executive Andy Goldberg said the company's world-renowned sweepstakes "will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business."

EU President Welcomes Trump's 20% Tariff Pause

European Union chief Ursula von der Leyen welcomed U.S. President Trump's decision to pause planned tariffs on goods from other countries that sent markets reeling.

"It's an important step towards stabilizing the global economy," she said in a statement Thursday morning, hours after Trump said he would pause the rollout of so-called reciprocal tariffs for 90 days for all countries except China.

Why Trump Blinked on Tariffs Just Hours After They Went Into Effect

President Trump finally blinked.

It took a week for the plunge in the stock and bond markets-along with a sustained campaign by executives, lawmakers, lobbyists and foreign leaders-to prompt Trump to roll back for 90 days a major element of his sweeping tariff plan.

GOP Holdouts Force Delay in Vote on Trump Budget Plan

WASHINGTON-Republican leaders postponed a vote on the blueprint for President Trump's "one big, beautiful bill," throwing the GOP legislative agenda into temporary uncertainty as they try to find a path forward on tax cuts and spending.

A handful of hard-right conservatives resisted the pleas from Republican leaders and Trump, who had urged wavering House members to "close your eyes and get there." The holdouts argued that the plan that came out of the Senate on Saturday didn't lock in nearly enough spending cuts alongside extensions of expiring tax cuts.

Trump Transforms Tariff War Into High-Stakes Showdown With China

By pausing global tariffs against dozens of countries and raising them on China, President Trump has set up a high-stakes showdown in hopes he can pressure Beijing into a face-saving deal after weeks of global turmoil.

There is little sign so far, though, that Chinese leader Xi Jinping is ready to buckle.

Chinese Students on U.S. Campuses Are Ensnared in Political Standoff

Mounting U.S.-China tensions are forcing a rupture in the long love affair between Chinese students and American colleges.

Chinese students, who often pay full tuition, have been a significant source of revenue for U.S. schools. On Wednesday, China cautioned students against studying in the U.S. The warning came as the U.S. is revoking visas for many of those already here.

Write to don.forbes@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators $(ET)$:

Building permits for February

Stocks to Watch:

No items published

Other News:

Canada PM Carney: Trump Pause on Reciprocal Tariffs 'Welcome Reprieve' for Global Economy

Expected Major Events for Thursday

08:00/ITA: Feb Industrial Production

09:30/GER: ifo Joint Economic Forecast of German economic research institutes

12:30/CAN: Feb Building permits

12:30/US: Mar CPI

12:30/US: Mar Real Earnings

12:30/US: 04/05 Unemployment Insurance Weekly Claims Report - Initial Claims

12:30/US: U.S. Weekly Export Sales

13:00/RUS: Weekly International Reserves

14:30/US: 04/04 EIA Weekly Natural Gas Storage Report

16:00/US: Mar Monthly U.S. Retail Chain Store Sales Index

16:00/US: World Agricultural Supply & Demand Estimates (WASDE)

18:00/US: Mar Monthly Treasury Statement of Receipts and Outlays of the U.S. Government

20:30/US: Foreign Central Bank Holdings

20:30/US: Federal Discount Window Borrowings

23:01/UK: Mar BRC-Sensormatic IQ Footfall Monitor

23:01/UK: Mar KPMG and REC UK Report on Jobs

23:50/JPN: Mar Money Stock, Broadly-defined Liquidity

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Thursday

ADF Group Inc (DRX.T) is expected to report $0.43 for 4Q.

Bank7 Corp (BSVN,GMAR.XX) is expected to report $1.00 for 1Q.

Benson Hill Inc (BHILQ) is expected to report for 4Q.

Biolase Inc $(BIOLQ)$ is expected to report for 4Q.

Byrna Technologies Inc (BYRN,BYRN-L) is expected to report $0.03 for 1Q.

COSCIENS Biopharma Inc (CSCI,CSCI.T) is expected to report for 4Q.

Cambium Networks Corp (CMBM) is expected to report $-0.18 for 4Q.

CarMax Inc $(KMX)$ is expected to report $0.65 for 4Q.

Constellation Brands Inc $(STZ)$ is expected to report $2.30 for 4Q.

Cutera Inc $(CUTRQ)$ is expected to report $-0.40 for 4Q.

DZS Inc $(DZSIQ)$ is expected to report for 4Q.

Devolver Digital Inc (DEVO.LN) is expected to report for Full year.

Dixie Group Inc (DXYN) is expected to report for 4Q.

ENGlobal Corp (ENGC) is expected to report for 4Q.

Hingham Institution for Savings $(HIFS)$ is expected to report for 1Q.

Kirkland's Inc $(KIRK)$ is expected to report $0.52 for 4Q.

Kopin Corp $(KOPN)$ is expected to report $-0.01 for 4Q.

Leafly Holdings Inc (LFLY) is expected to report for 4Q.

Lovesac Co $(LOVE)$ is expected to report $1.87 for 4Q.

Madison Pacific Properties Inc (MPC.T) is expected to report for 2Q.

Marin Software Inc $(MRIN)$ is expected to report for 4Q.

Nikola Corp $(NKLAQ)$ is expected to report for 4Q.

Noble Romans Inc (NROM) is expected to report for 4Q.

Northern Technologies International Corp $(NTIC)$ is expected to report $0.04 for 2Q.

Omega Therapeutics Inc $(OMGAQ)$ is expected to report $-0.28 for 4Q.

Oncotelic Therapeutics Inc (OTLC) is expected to report for 4Q.

Postmedia Network Canada (PNC.A.T,PNC.B.T) is expected to report for 2Q.

Reitmans (Canada) Ltd (RET.V,RTMNF) is expected to report for 4Q.

Richardson Electronics Ltd $(RELL)$ is expected to report $0.10 for 3Q.

Richelieu Hardware Ltd (RCH.T) is expected to report $0.35 for 1Q.

Royale Energy Inc $(ROYL.AU)$ is expected to report for 4Q.

SUNation Energy Inc (SUNE) is expected to report for 4Q.

Smart Share Global Ltd - ADR (EM) is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Americold Realty Trust Raised to Overweight From Equal-Weight by Barclays

Apple Raised to Hold From Underperform by Jefferies

Associated Banc-Corp Raised to Overweight From Equal-Weight by Wells Fargo

AZZ Inc Raised to Buy From Neutral by Sidoti & Co.

Bath & Body Works Raised to Overweight From Neutral by Piper Sandler

Bio-Techne Cut to Sector Weight From Overweight by Keybanc

Bloom Energy Cut to Sell From Neutral by Redburn Atlantic

CF Industries Raised to Sector Perform From Sector Underperform by Scotiabank

Constellation Energy Raised to Buy From Neutral by Citigroup

Extra Space Storage Raised to Sector Outperform From Sector Perform by Scotiabank

First BanCorp Puerto Rico Raised to Overweight From Equal-Weight by Wells Fargo

Ford Motor Cut to Underperform From Market Perform by Bernstein

Harvard Bioscience Cut to Sector Weight From Overweight by Keybanc

Health Catalyst Cut to In-Line From Outperform by Evercore ISI Group

Host Hotels & Resorts Cut to Hold From Buy by Jefferies

Johnson & Johnson Raised to Buy From Neutral by Goldman Sachs

Keurig Dr Pepper Raised to Overweight From Neutral by Piper Sandler

Myriad Genetics Cut to Neutral From Buy by Guggenheim

OFG Bancorp Cut to Equal-Weight From Overweight by Wells Fargo

Park Hotels & Resorts Cut to Hold From Buy by Jefferies

Popular Raised to Overweight From Equal-Weight by Wells Fargo

PTC Cut to Neutral From Overweight by JP Morgan

$Public Storage(PSA-N)$ Raised to Sector Outperform From Sector Perform by Scotiabank

Rallybio Cut to Neutral From Buy by HC Wainwright & Co.

RxSight Cut to Neutral From Buy by UBS

Sirius XM Raised to Buy From Neutral by Seaport Global

Starbucks Raised to Hold From Underperform by Jefferies

Travelers Raised to Equal-Weight From Underweight by Wells Fargo

WR Berkley Cut to Equal-Weight From Overweight by Wells Fargo

Xenia Hotels & Resorts Cut to Hold From Buy by Jefferies

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 10, 2025 06:01 ET (10:01 GMT)

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