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US STOCKS-Wall St set to open flat on auto tariff threat; Nikola plunges
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US STOCKS-Wall St set to open flat on auto tariff threat; Nikola plunges
Feb 19, 2025 6:36 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

*

Nikola ( NKLA ) falls after filing for bankruptcy protection

*

Payments processor Shift4 to buy Global Blue ( GB ) in $2.5-bln

deal

*

Futures down: Dow 0.16%, S&P 500 0.11%, Nasdaq 0.06%

(Updates before markets open)

By Shashwat Chauhan and Sukriti Gupta

Feb 19 (Reuters) -

Wall Street's main indexes were set to open flat on

Wednesday on worries over proposed U.S. auto tariffs and ahead

of minutes from the Federal Reserve's January meeting, while

electric-truck maker Nikola ( NKLA ) tumbled after going bankrupt.

Trump said on Tuesday that he intended to impose auto

tariffs "in the neighborhood of 25%", along with similar duties

on semiconductor and pharmaceuticals imports.

Trump's tariffs have raised concerns if they would fuel

inflation in the U.S. and weigh on the Fed's stance on rate cuts

this year.

Minutes of the U.S. central bank's January policy

meeting - where voting members elected to let

interest rates stand and Fed Chair Jerome Powell said there

would be no rush to cut them again until inflation and jobs data

made it appropriate - are scheduled to be released at 2 p.m. ET.

"With the risk of inflation moving higher as well as

where financial conditions are, the Fed is really not in a hurry

to cut rates," said Charlie Ripley, senior investment strategist

for Allianz Investment Management.

Investors will look for hints on the Fed's rate plans for

the year in the minutes, in light of last week's mixed consumer

and producer prices data coupled with a sharp drop in retail

sales, which had sent Treasury yields lower.

Traders currently see at least one 25-basis-point rate cut

and a 44% chance of an additional lowering by December,

according to LSEG data.

Since his inauguration in January, Trump has imposed a 10%

tariff on all imports from China, on top of existing levies. He

also announced and delayed for a month 25% tariffs on goods from

Mexico and non-energy imports from Canada.

"Talking about tariffs is not the same as implementing

tariffs, and I think we've seen a lot of talk over the past

month or so and not a lot on the implementation side of things,"

Ripley said.

The S&P 500 eked out an all-time closing high in the

last session, lifting tech heavyweights Microsoft ( MSFT ) and

Nvidia ( NVDA ).

At 08:17 a.m. ET, Dow E-minis were down 72 points,

or 0.16%, S&P 500 E-minis were down 6.75 points, or

0.11%, and Nasdaq 100 E-minis were down 14.25 points, or

0.06%.

Nikola ( NKLA ) fell 47.4% after saying it had filed for

Chapter 11

bankruptcy protection.

Retail giant Walmart's ( WMT ) results, a bellwether for how

the American consumer is faring, are due later this week.

Arista Networks ( ANET ) dropped 4.9% despite the cloud

computing provider forecasting first-quarter revenue above Wall

Street estimates.

Bumble slid 19.5% after the dating-app operator

forecast first-quarter revenue below analysts' estimates.

Specialty chemicals company Celanese lost 15.3% after

reporting a quarterly loss.

Payments processor Shift4 fell 9.3% after its

fourth-quarter results and news that the company has agreed to

buy Global Blue ( GB ), in a deal valued at $2.5 billion. Shares

of Global Blue ( GB ) jumped 18%.

Analog Devices ( ADI ) gained 5% after the chipmaker

beat first-quarter profit and revenue estimates.

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