Stocks look poised to extend their weekly losses at the opening bell, as the S&P 500 futures are trading 14 points, or 0.5%, below fair value.
The S&P 500 dropped for a third consecutive session on Thursday--extending its weekly loss to 2.5%--with most of the decline coming after President Trump said he'll be imposing tariffs on steel and aluminum imports--25% for steel and 10% for aluminum. Mr. Trump's decision has stirred fears of retaliation from major trade partners, which, in turn, has prompted a global equity sell off; Japan's Nikkei (-2.5%) led the retreat in Asia on Friday, finishing with a weekly loss of 3.3%, while Germany's DAX (-2.1%) is currently pacing the slide in Europe.
The Japanese yen is up 0.8% against the U.S. dollar this morning at 105.35, hitting its highest level since the 2016 U.S. presidential election, after Bank of Japan Governor Haruhiko Kuroda said the BoJ would consider ending ultra-loose monetary policy if inflation hits 2.0% around fiscal 2019--which is what the BoJ is currently forecasting.
Meanwhile, in the U.S. bond market, Treasuries have given back a chunk of Thursday's rally this morning, pushing yields higher across the curve. The yield on the benchmark 10-yr note is up four basis points at 2.84%, while the yield on the 2-yr note is up three basis points at 2.23%. For the week, the 10-yr yield is down three basis points and the 2-yr yield is lower by one.
On the data front, investors will receive just one economic report today, the final reading of the University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 99.5), which will cross the wires at 10:00 AM ET.