After Wednesday’s remarkable rally, U.S. stocks pulled back slightly as traders reassessed risk amid renewed geopolitical and macroeconomic concerns. The dollar faced heavy selling pressure, and longer-dated Treasuries saw continued weakness, even as the U.S. 30-year bond auction drew solid demand.

Sentiment took another hit following reports that the White House confirmed U.S. tariffs on Chinese goods now total 145%—a steep escalation, combining the existing 20% with an additional 125% imposed this year. This latest development amplified the risk-off tone in global markets.

Asian equities largely mirrored the cautious mood set by Wall Street, while the U.S. Dollar Index (DXY) experienced another leg down. U.S. 10-year Treasury futures remained subdued, reflecting ongoing volatility and investor uncertainty.

Over in Europe, however, there’s a glimmer of optimism. Equity futures are pointing to a positive open, with Euro Stoxx 50 futures up 0.5%, extending gains after the cash index closed Thursday up 4.3%.

Key Events to Watch

Looking ahead, today’s economic calendar is packed with high-impact data and events:

• UK GDP: A crucial read on the health of the British economy.
• US PPI (Producer Price Index): Key for gauging inflation pressures at the wholesale level.
• University of Michigan Consumer Sentiment (Prelim): A pulse check on U.S. consumer confidence.
• Credit Rating Reviews: Moody’s is set to deliver updates on France, the UK, Italy, Spain, and Switzerland—any surprises here could stir bond markets.
• Central Bank Speakers: Fed’s Musalem and Williams, along with BoE’s Greene, are on the docket. Market watchers will listen closely for any policy clues.
• Government Bond Supply: Italy is coming to market with new issuance.
• Earnings Season Heats Up: Major U.S. financials are reporting today, including JPMorgan, BlackRock, Wells Fargo, Bank of New York Mellon, Morgan Stanley, and Fastenal.