Tariff tension continues to start Q2

The S&P 500 futures are down 20 points and are trading 0.4% below fair value, the Nasdaq 100 futures are down 72 points and are trading 0.4% below fair value, and the Dow Jones Industrial Average futures are down 225 points and are trading 0.5% below fair value.

Early trading features a negative bias as investors wait on the latest tariff measures by the Trump administration to be announced tomorrow. There’s also some carryover downside momentum in play after weak showing for equities in the first quarter.

Treasury yields are sharply lower, reflecting safe-haven buying in front of the tariff announcements. The 10-yr yield is down nine basis points to 4.16% and the 2-yr yield is down six basis points to 3.85%.

The economic calendar today includes the final March S&P Global US Manufacturing PMI at 9:45 ET, and the March ISM Manufacturing Index, February JOLTS – Job Openings, and February Construction Spending at 10:00 ET.

In corporate news:

• PVH (PVH): beats by $0.06, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY26 EPS above consensus, revs above consensus; to repurchase $500 mln in 2025; intends to enter into $500 million accelerated share repurchase agreements
• Johnson & Johnson (JNJ): bankruptcy effort for talc claims rejected by federal judge, according to Bloomberg
• Boeing (BA): awarded $2.46 bln U.S. Air Force contract modification; Wing production impacting Boeing’s efforts to increase 737 Max production, according to Air Current
• Tesla (TSLA): car sales in France & Norway fall to lowest level in 4 years, according to Reuters

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Originally Posted April 1, 2025 – Tariff tension continues to start Q2