4:05pm: Nasdaq leads gains
US stocks edged into positive territory before Friday’s close as President Trump signalled ‘flexibility’ on reciprocal tariffs set for April 2.
The Nasdaq added 0.5% at 17,784 points, while the S&P 500 was up 0.1% at 5,667 points and the Dow Jones gained 0.1% at 41,985 points.
The Nasdaq and the S&P 500 both snapped four-week losing streaks.
3:52pm: Carney cancels controversial capital gains tax
More news from up north.
Mark Carney has announced that the federal government will cancel the proposed increase in the capital gains inclusion rate.
The tax changes, first announced in the 2024 Budget under Carney’s predecessor Justin Trudeau, triggered significant backlash from various sectors concerned it would curb investment.
3:21pm: Canada's growth forecast lowered
Bank of America has lowered its outlook for Canada’s economy, citing trade tensions with the US and political uncertainty ahead of a likely snap election.
The bank now expects Canada’s gross domestic product to grow 1.5% in 2025, down from a previous estimate of 2.4%, and has trimmed its 2026 forecast to 2% from 2.2%.
The downward revisions reflect concerns over trade disruptions, slowing US growth, and the impact of tariffs imposed by President Donald Trump’s administration.
2:50pm: Friday's headlines
FedEx shares fell more than 9% in afterhours trading after the freight company’s third quarter earnings missed expectations and it slashed its full-year profit outlook.
Tesla CEO Elon Musk has told the company’s employees to hold onto their stock following a 50% drop from its all-time high in December 2024.
Cruise operator Carnival reported better-than-expected financial results for the first quarter and raised its full-year profit guidance.
Perplexity AI is reportedly planning a funding round that could value the AI-powered search startup at $18 billion.
1:47pm: Selling resumes
The US market rebound may be ending as renewed economic concerns resurface, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
“After a week in which hopes of rebound for battered US stocks predominated, US stocks have turned firmly lower in the final session of the week," Beauchamp said.
"The big worry for investors is that the US economy, far from firing on all cylinders, is facing major headwinds, and FedEx’s warning today provides a more granular look at the economy that reinforces those fears."
12:45pm: Markets struggle for direction
The stock market was mixed at the beginning of afternoon trading amid economic uncertainty and tariff concerns.
The Dow dipped 0.1%, the S&P 500 fell 0.3%, and the Nasdaq remained flat, stabilizing after recent tech sector declines.
Investor caution stemmed from the Federal Reserve’s downgraded growth projections and higher inflation forecasts, raising stagflation fears. Uncertainty over US tariff policies also weighed on sentiment, potentially affecting corporate operations.
Meanwhile, labor market data showed a slight rise in jobless claims, with more individuals staying on unemployment rolls longer, signaling a cooling job market.
As the week closes, investors are watching economic indicators and policy updates for stability or further challenges. The Dow and S&P 500 seek to stabilize, while the Nasdaq’s flat performance suggests a pause in its recent correction.
11:30am: Stagflation on the horizon: BofA
Bank of America has revised its economic forecasts, lowering 4Q/4Q growth for 2025 from 2.3% to 1.8% while raising inflation expectations. The core PCE inflation is now projected to reach 3.0% year-over-year in the second half of 2025. Amidst modest stagflation, the Federal Reserve is expected to maintain its current stance. The note also outlines various scenarios for potential outcomes of the April 2 tariff announcements, with risks tilted toward weaker growth and higher inflation.
Regarding the March FOMC meeting, the focus was on stagflation risks. The Fed's statement highlighted uncertainty, with growth being revised down and inflation up. While the dot plot remained unchanged, Fed Chair Powell's comments were seen as dovish, particularly regarding inflation expectations and goods inflation.
For February's personal income and outlays report, Bank of America expects a 0.3% month-over-month increase in both headline and core PCE inflation, with a risk that core inflation could rise to 0.4%. Nominal personal income is forecast to increase by 0.4%, reflecting solid job and wage growth. The report anticipates a 0.7% pickup in nominal spending, with strong gains in retail and auto sales and solid services spending following January's softness.
10:02am: Weakness across markets
US stocks kicked off Friday’s trading session in negative territory, led lower by the Dow Jones which was down 1% at 41,541 points.
The S&P 500 was down 0.8% at 5,618 points while the Nasdaq fell 0.7% at 17,560 points.
“A big week of central bank decisions is coming to an end with the central bankers bathing in uncertainty of the tariffs and the economic implications of the rapidly escalating trade war,” Swissquote Bank senior analyst Ipek Ozkardeskaya said.
“The rapid loss of appetite hints that there is a stronger case for a further selloff in US stocks than a sustainable rebound.”
8:00am: Stocks expected to fall at the open
Wall Street stocks are expected to extend their declines when trading kicks off on Friday, reflecting investor apprehension over escalating trade tensions, shifting central bank policies, and ongoing geopolitical uncertainties.
The Nasdaq has been called 0.29% lower on the futures market, while Dow Jones futures were down 0.26% and those for the broad-market S&P 500 were 0.21% lower.
Yesterday, the Dow Jones fell 11 points, or 0.03%, to 41,953, while the S&P 500 dropped 12 points, or 0.2%, to 5,663, and the tech-heavy Nasdaq Composite declined 59 points, or 0.3%, to 17,692.
European shares were lower ahead of the US opening bell, with German and French benchmarks down 0.7% and 0.66% respectively, while London's FTSE was down 0.47%.
"Markets are treading carefully as global economic conditions remain fragile, with key policy decisions and external risks weighing heavily on sentiment," said Naeem Aslam, chief investment officer at Zaye Capital Markets.
"Investor focus remains on the latest trade disputes, central bank policy outlooks, and geopolitical developments, all of which introduce volatility and uncertainty into the market," he added.
"With upcoming economic data releases and corporate earnings reports, traders are bracing for potential shifts in sentiment throughout the day."