5 Things to Know Before the Stock Market Opens Friday

1. Stock Market Poised for Modest Gains

Stock futures showed muted movement on Thursday, reflecting a relatively cautious trading environment. Despite the slow pace, the major indexes have recorded modest gains for the week. As of Thursday morning:

• The Dow Jones Industrial Average has risen 1%.

• The S&P 500 is up 0.8%.

• The Nasdaq Composite has gained 0.65%.

However, auto stocks are under pressure following new tariff announcements from the White House. General Motors (GM) fell 6% in premarket trading, with broader implications for the global auto industry. Investors are closely watching how these developments impact market sentiment throughout the day.

2. President Trump Announces 25% Tariffs on Imported Cars

On Wednesday, President Donald Trump introduced a new 25% tariff on vehicles made outside the U.S. These tariffs are an addition to existing trade measures and come ahead of a broader set of duties expected to take effect on April 2.

The policy targets key auto-exporting countries, including Mexico, Korea, Japan, and Canada, which accounted for a significant share of U.S. vehicle imports last year, according to GlobalData. The announcement has sent ripples through global auto markets, with concerns over increased costs and potential retaliatory trade measures from affected countries.

3. Treasury Department Faces Potential Workforce Reductions

Federal job cuts may be on the horizon at the Treasury Department, as the government considers furloughing a substantial portion of its workforce.

A Treasury spokesperson confirmed that no final decisions have been made but emphasized that the department is evaluating "a number of measures to increase efficiency, including a rollback of wasteful Biden-era hiring surges." With over 100,000 employees, the Treasury Department plays a critical role in economic policy, financial regulation, and tax collection. Any significant downsizing could impact the agency’s ability to implement key fiscal policies.

4. OpenAI’s Revenue Projections Skyrocket

Artificial intelligence powerhouse OpenAI is on track for massive revenue growth, according to a report from CNBC’s Hayden Field. The company expects to generate $12.7 billion in revenue by 2025, tripling its earnings from the previous year.

This projection puts OpenAI within reach of the annual recurring revenue of Microsoft, its principal investor and strategic partner. As competition in the generative AI sector intensifies, OpenAI is restructuring its leadership and refining its business strategy to maintain its market dominance.

5. KB Home Launches ‘Fire-Resilient’ Community in California

Real estate developer KB Home has unveiled an innovative housing project focused on fire resilience in Escondido, California. The community, designed with enhanced wildfire protection measures, will feature 64 homes starting at $1 million each.

These homes are built with specialized materials and design elements aimed at mitigating fire risk, including strategic spacing between structures and fire-resistant building materials. With climate change increasing the frequency and severity of wildfires, demand for such resilient housing solutions is growing. KB Home reports that 20 of the homes are already sold, highlighting strong consumer interest in climate-conscious construction.

As markets open on Thursday, investors will be closely monitoring these developments, particularly the tariff impact on auto stocks, potential job cuts at the Treasury, and OpenAI’s growth trajectory. With volatility expected, traders are bracing for potential swings in key sectors.