Stock futures came off of their lows on Thursday morning after an encouraging inflation report. Futures tied to the broad market index were 0.2% lower. while futures linked to the Dow Jones Industrial Average shed 71 points, or 0.2%. Nasdaq 100 futures declined 0.4%. The Nasdaq’s decline on Thursday morning was a reversal from the day before. Beleaguered tech stocks caught a bid Wednesday as investors snapped up shares, lifting the S&P 500 higher by 0.5%. The Nasdaq Composite also popped 1.2% thanks to gains from Nvidia and Palantir Technologies. The 30-stock Dow was an outlier, however, notching a third straight losing day and falling 0.2%. Futures extended their selling after a fresh threat of tariffs from President Donald Trump. On Thursday morning, Trump took to his Truth Social platform to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote. However, stock futures came off of their morning lows after February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This, alongside a softer-than-expected February consumer price index reading, may have helped ease traders’ concerns about the direction of the economy and the impact tariffs could have on inflation. Though market strategists have been watching for a technical bounce after the recent sell off, some say the latest inflation print likely isn’t enough to lead to a sizable rebound. Concerns over Trump’s trade policies remain a key hangover on investor sentiment, and they throw into question how the Federal Reserve may proceed on interest rates. “We still believe the next Fed rate move is lower, but it is hard to have high confidence with the impact of tariffs still uncertain,” said Scott Helfstein, Global X’s head of investment strategy. “The key question is whether tariffs will have a greater impact on growth or prices. In recent weeks, the rates market has signaled that weaker growth is the bigger concern with three cuts now being priced for this year.” Week to date, all three major averages are on pace for steep declines. The S&P 500 and Nasdaq are on track for losses of about 3%. The Dow is off 3.4% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February. U.S. Treasury yields were higher Wednesday, a sign of relief after a softer inflation report eased some concerns about the economy. The benchmark 10-year Treasury yield rose more than 3 basis points at 4.322%. The 2-year Treasury yield rose nearly 6 basis points to 3.997%, after falling to its lowest level since October on Tuesday morning. Asia-Pacific markets fell on Thursday after a soft inflation report in the U.S. helped two of the three benchmarks on Wall Street reverse course from two days of losses. Over in Japan, the benchmark Nikkei 225 ended the day flat at 36,790.03, while the broader Topix index edged up 0.13% to close at 2,698.36. South Korea’s Kospi index closed flat at 2,573.64. Meanwhile, the small-cap Kosdaq fell 0.92% to close at 722.80, reversing course from gains earlier in the session. Hong Kong’s Hang Seng Index dipped 0.57% to close at 23,463.26, while mainland China’s CSI 300 fell 0.40% to 3,911.58, in choppy trade. Australia’s S&P/ASX 200 ended the day 0.48% lower at 7,749.10. This is the third consecutive day that the index is ending in negative territory. Oil prices edged up early on Wednesday, helped by a weaker dollar, but mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth capped gains. Brent futures rose 27 cents, or 0.39%, to $69.83 a barrel at 0110 GMT, while U.S. West Texas Intermediate crude futures gained 29 cents, or 0.44%, to $66.54 a barrel. Safe-haven gold rose on Wednesday, aided by tariff uncertainty and a cooler inflation report that keep bets for a U.S. rate cut intact. Spot gold was up 0.7% at $2,935.59 an ounce as of 02:32 p.m. ET (1832 GMT). U.S. gold futures settled 0.9% higher at $2,946.80.