LIVE MARKETS-US stocks lower as latest tariff threat weighs

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U.S. STOCKS LOWER AS LATEST TARIFF THREAT WEIGHS

U.S. stocks are lower in the initial stages of Thursday trading, as the latest tariff salvo from the Trump Administration overshadowed a relatively benign reading on inflation.

In the latest tariff shot, Trump threatened to slap a 200% tariff on all wines and other alcoholic products coming out of Europe if the European Union does not scrap its planned tax on American whiskey.

The Labor Department said U.S. producer prices were unexpectedly unchanged in February, down from the upwardly revised 0.6% increase in January and the 0.3% rise forecast by economists polled by Reuters.

Investors may be overlooking the data, however, as the impact of tariffs has not been fully felt yet.

"Of course this is only one month – and doesn’t yet include the impact of tariffs – so many people will discount these numbers, however, they do speak to the underlying trend pre-tariffs-taking-effect, and at least we are starting from a better place," said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management in Charlotte, North Carolina.

Other data showed weekly initial jobless claims slipped 2,000 to a seasonally adjusted 220,000, below the 225,000 estimate, although layoffs among federal workers has not yet filtered through to the data.

Also supplying some pressure were lessening hopes for a ceasefire between Russia and Ukraine, after the Kremlin said a 30-day ceasefire proposed by the United States to pause the war in Ukraine would simply give Kyiv's forces a much-needed battlefield respite.

On the S&P 500 sector front, materials .SPLRCM is the leading gainer, while consumer discretionary .SPLRCD and communication services .SPLRCL are both stumbling more than 1% each.

Below is an early trade market snapshot:

(Chuck Mikolajczak)

FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

HOW EMS COULD FARE IN THE EVER-CHANGING US TRADE POLICY - S&P GLOBAL RATINGS - CLICK HERE

US STOCK FUTURES A BIT LESS RED AFTER DATA RELEASES - CLICK HERE

DAX COULD BE GOING TO DISAPPOINT MILESTONE LOVERS - CLICK HERE

NOTHING LAST FOREVER, BUT THE GOLD RALLY MIGHT TRY - CLICK HERE

EUROPEAN EQUITY VOLATILITY AT ONE-WEEK LOW - CLICK HERE

BREATHING SPACE - CLICK HERE

MORNING BID: TARIFF WORRIES WEIGH AS CPI CHEER FADES - CLICK HERE