Dow Jones futures rose solidly Friday morning, along with S&P 500 futures and Nasdaq futures. Senate Democrats signaled they won't block a vote on a GOP spending bill, making a U.S. government shutdown unlikely.
The stock market sold off Thursday in another volatile session amid more Trump tariff threats and further talk from President Donald Trump about annexing Canada and Greenland. The Dow Jones and S&P 500 hit fresh six-month lows.
Tesla fell amid reports that the upcoming "affordable" EV will just be a stripped-down Model Y. Meta Platforms, one of the better-performing tech titans, tumbled to a fresh 2025 low.
Gold stocks shined. Cash-rich Berkshire Hathaway, the ultimate Warren Buffett stock, made a bullish move within a buy zone.
After the close, cybersecurity software maker Rubrik reported better-than-expected results and bullish guidance. RBRK stock soared in extended trade, possibly back to its 50-day line.
Tesla China rival Li Auto reported mixed earnings early Friday. LI stock fell solidly after closing not far from a buy point.
Dow Jones Futures Today
Dow Jones futures rose 0.55% vs. fair value. S&P 500 futures advanced 0.9% and Nasdaq 100 futures jumped 1.2%.
Futures picked up overnight after Senate Minority Leader Chuck Schumer dropped his threat to block a GOP spending bill. That makes a government shutdown unlikely. Government funding is due to expire at midnight Friday.
The 10-year Treasury yield climbed to 4.31%.
Crude oil futures rose less than 1%.
At 10 a.m. ET, the University of Michigan will report inflation expectations as part of its March consumer sentiment index. The Federal Reserve follows inflation expectations closely.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market
The stock market rally fell at the open and sold off sharply with some big intraday swings. The S&P 500 and Dow Jones hit fresh six-month lows with the Nasdaq nearly doing so.
President Trump on Thursday threatened to retaliate against new European Union tariffs on the U.S. Those EU tariffs were imposed Wednesday in response to Trump tariffs on steel and aluminum imports. Trump continued to call for Canada to become the 51st state and renewed his push to annex Greenland, nominally controlled by EU member Denmark.
The Dow Jones Industrial Average fell 1.1% in Thursday's stock market trading. The S&P 500 index sank 1.1% and closed down 10.1%, meeting the traditional definition of an intermediate correction.. The Nasdaq composite gave up 1.6%, at one point coming within a point of undercutting Tuesday's lows. The small-cap Russell 2000 slid 1.6%, at seven-month lows.
The Invesco S&P 500 Equal Weight ETF sank 1% and the First Trust Nasdaq 100 Equal Weighted Index ETF tumbled 1.5%, both undercutting Wednesday's lows.
The Nasdaq rally attempt is just hanging on because it didn't quite undercut Tuesday's lows.
Gold and silver stocks and ETFs are doing well, continuing to thrive amid Trump tariff uncertainty and a weaker dollar.
Insurers and some utilities are holding up, some in buy zones, but aren't making much progress. A few industrial names, medicals and China plays also are showing relative strength.
U.S. crude oil prices fell 1.7% to $66.55 a barrel.
The 10-year Treasury yield reversed lower, falling four basis points to 4.275%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF retreated 2.05%. The iShares Expanded Tech-Software Sector ETF tumbled 3.3%. The VanEck Vectors Semiconductor ETF slipped 0.4%. ARK Innovation ETF plunged 4.8%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF added 0.5%. The Energy Select SPDR ETF slid 0.7%.
The Health Care Select Sector SPDR Fund gave up 0.5%. The Financial Select SPDR ETF lost 0.55%. Berkshire stock is the No. 1 holding in XLF.
The Industrial Select Sector SPDR Fund declined 1%.
The 200-Day Average: The Last Line Of Support?
Tesla Stock
Tesla stock fell 3% to 240.68 Thursday. Shares had bounced in the prior two sessions after crashing 15.4% on Monday. TSLA stock is on track for its eighth straight weekly decline, down 8.4% so far.
Tesla has wiped out all its postelection gains amid growing concerns that Musk's work with the Trump administration and highly political posts have caused significant brand "destruction."
Tesla will launch a stripped-down Model Y as its first "affordable" electric vehicle, according to a China media report, with China deliveries possible late this year. Reuters reported that the cheaper EV would be slightly smaller than a Model Y, and cost 20% less to make.
The EV giant has said it will begin production of an "affordable" EV by midyear. A cheap Model Y could boost sales, but could mean further margin pressure.
In an unsigned letter, Tesla told U.S. Trade Rep. Jamieson Greer that the company is "exposed" to other countries' retaliation to Trump tariffs, the Financial Times reported late Thursday.
TSLA stock rose slightly early Friday.
Meta Stock
Meta stock tumbled 4.7% to 590.64, just undercutting the 2025 low set on Monday. Meta has been the best performer in the Magnificent Seven and is still the only one above its 200-day moving average. But it's not in good shape.
Meta shares rose modestly early Friday.
Warren Buffett Stock Berkshire
Berkshire stock rose 1.7% on Thursday to 504.25, rising within a buy zone. That followed several tight closes, holding the 21-day line and the 491.67 cup-base buy point, according to MarketSurge. BRKB stock broke out on Feb. 24 following strong earnings. Its relative strength line has skyrocketed in the past few weeks, reflecting Warren Buffett's outperformance vs. the S&P 500.
The outperformance of Warren Buffett stock Berkshire is easy to understand. It's an insurance-led conglomerate at a time when insurers are in favor. And Warren Buffett's massive $334 billion cash hoard, invested in Treasuries, makes BRKB stock one way to go to cash.
Shares edged higher before the open.
BRKB stock has an average true range of 1.92%. Investors should be looking for stocks with low ATRs in the current market.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The stock market is heading relentlessly lower, with Trump tariff uncertainty a major catalyst. Aside from a few areas like gold and silver miners and individual names such as Warren Buffett's Berkshire, very few stocks are doing better than hanging on.
It's a time to be extremely defensive, mostly or entirely in cash. Protect your financial and mental capital. Do not get excited by one good day.
Work on your watchlists, preparing for the next uptrend.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
