US stock indexes are on track to open higher on Friday after a sharp sell-off in the previous session.
The S&P 500 and Nasdaq suffered their steepest one-day declines in a month on Thursday, as oil prices moved above US$100 a barrel for the first time since May.
Stocks also came under pressure from sharp falls in Alphabet and Tesla, after investors focused on higher artificial intelligence infrastructure spending plans.
Markets are also looking ahead to next week’s Federal Reserve meeting. Traders are now pricing in roughly a one-in-three chance of a rate hike, up from 12% a week earlier.
Despite this, Wall Street looks set to shrug off the new tariffs imposed by the Trump administration on goods from 60 trading partners. The tariffs range from 10% to 12.5%.
Brian Jacobsen, chief economic strategist at Annex Wealth Management, said Trump’s replacement tariffs were “less shock and awe” than the first set.
He said the measures were not a surprise, were lower than the original tariffs and included important carve-outs intended to limit the immediate impact on consumer prices. Jacobsen described the market backdrop as “business as unusual”.
