Stock futures experienced a slight increase on Tuesday evening following uncertainty surrounding President Donald Trump’s tariffs, which had sent major averages on a volatile ride. Investors are also anticipating a consumer inflation report scheduled for release on Wednesday.
Futures linked to the Dow Jones Industrial Average advanced by 84 points, or 0.2%. S&P 500 futures rose by 0.2%, while Nasdaq 100 futures gained 0.3%.
This after-hours movement followed a tumultuous day for tariff policy, resulting in losses for all three major averages. At its lowest point during the session, the S&P 500 was down 10% from its closing high. The 30-stock Dow closed nearly 480 points, or 1.1%, lower, and the Nasdaq Composite posted a roughly 0.2% decline.
Earlier on Tuesday, Trump announced that he would double import duties on Canadian steel and aluminum imports to 50%, effective Wednesday, in response to Ontario’s decision to impose a 25% levy on electricity exported to the U.S.
Later in the day, Ontario Premier Doug Ford stated he would pause the surcharge. White House trade advisor Peter Navarro followed by informing CNBC on Tuesday afternoon that Trump would not raise the Canadian steel and aluminum tariffs to 50%. However, the 25% duty on these metals will still take effect on Wednesday.
Traders are now focused on another key event on Wednesday: the consumer price index (CPI) reading for February. Economists surveyed by Dow Jones expect the CPI to have risen 0.3% last month, with headline inflation anticipated to grow 2.9% from 12 months earlier.
The results will influence the Federal Reserve’s next policy steps as the market’s concerns about inflation and slowing growth are re-emerging.
“We’re just waiting on some kind of policy response, either from the Fed or the administration,” said 3Fourteen Research co-founder Warren Pies on CNBC’s “Closing Bell” on Tuesday. “I think that’s going to be a little bit slow coming. And so I don’t think it’s time to buy the dip just yet.”
— news from CNBC