U.S. stock futures are pointing lower after the OECD cut its U.S. and global growth outlooks over tariff concerns and uncertainty. The OECD now projects U.S. annual real growth to fall to 1.6% in 2025 and 1.5% in 2026 from 2.8% in 2024. Global GDP growth forecasts were cut to 2.9% this year and next from 3.3% in 2024, assuming tariff rates as of mid-May remain unchanged.
Meanwhile, Dollar General shares are jumping 11% in premarket trading after the discount retailer reported Q1 earnings of $1.78 per share on net sales of $10.44 billion, exceeding forecasts. The company raised its full-year EPS forecast to a range of $5.20 to $5.80 and increased its net sales growth projection. Shares of General Motors, Ford Motor, and Stellantis are in focus after dropping 3.6% yesterday on investors’ concerns over proposed higher U.S. tariffs on steel imports.
President Donald Trump announced plans to double the tariffs to 50%, which could increase costs for automobile manufacturing.
Tariff concerns impact global growth
Palantir Technologies hit a record high as investor optimism over the AI-powered analytics software provider drove the company’s share price higher.
Palantir shares rose 0.2% to close Monday at $132.04. The stock has doubled since its early-April low and is up 75% since the start of the year. Trade tensions between the US and China have escalated, affecting global markets.
President Trump plans to double tariffs on steel and aluminum, prompting the EU to vow retaliation. These trade policy uncertainties have led to a weakening of the dollar, while Treasury yields have risen slightly. In addition to the trade tension news, oil prices have bounced back due to Canadian wildfires and output relief from OPEC.
The ECB has cut rates seven times in the past 13 months as inflation has eased from post-pandemic highs.