U.S. stock index futures showed a slight decline on Friday due to concerns over tariffs, which led FedEx to adjust its full-year forecasts amid economic uncertainty. FedEx's premarket trading dropped by 7.1%, while UPS also saw a slip of 1.3%.

There is ongoing apprehension among investors about the impact of the global trade war on the economy and corporate profitability. They are cautious about taking risks with their investments.

Market participants are waiting to hear about President Donald Trump's plans regarding new reciprocal and sectoral tariffs, expected to be announced in early April.

Despite these uncertainties, the S&P 500 index was projected to show a 1.1% gain, breaking its five-week losing streak and the Dow was set for its strongest week in over two months.

Investors drew some comfort from the Federal Reserve's recent stance, hinting at the possibility of two 25 basis point rate cuts by the end of the year. The Fed's decision to maintain current borrowing costs further eased concerns about potential rate hikes.

As per market expectations, there could be around 70 basis points of rate cuts from the Fed this year, with a probable 25 basis point cut at the June meeting. The Fed also forecasted slower economic growth and a temporary rise in inflation.

Stock futures like the S&P 500 E-minis, Nasdaq 100 E-minis, and Dow E-minis showed declines by early morning. Nike's shares fell by 5.6% after expecting a larger revenue drop in the fourth quarter than analysts predicted.

Tech stocks experienced losses with Meta, Amazon.com, and Nvidia all declining in value.

Events such as Federal Reserve Bank of New York President John Williams' address and an interview with Chicago President Austan Goolsbee on CNBC were closely watched by investors.

On the other hand, the Nasdaq faced the risk of its longest weekly losing streak in almost three years. Global central bank policymakers have taken a cautious stance this week amidst escalating trade tensions, highlighting the uncertain economic outlook.