U.S. stock futures edged higher Monday night following a sharp sell-off across the three major averages, as investors braced for President Donald Trump’s tariffs on Canada and Mexico set to take effect Tuesday. Futures tied to the Dow Jones Industrial Average rose by 72 points, or nearly 0.2%. S&P 500 futures and Nasdaq 100 futures gained 0.2% and 0.3%, respectively. Earlier in the day, the S&P 500 posted its largest daily loss since December, declining 1.76%, while the Dow fell 649.67 points, or 1.48%, and the Nasdaq Composite dropped 2.64%.
The market reversed earlier gains after Trump confirmed a 25% tariff on imports from Canada and Mexico, with no room left for negotiation. He also increased tariffs on Chinese goods by an additional 10%. The technology sector was hit hard, with Nvidia and Broadcom falling nearly 9% and 6%, respectively. Defensive sectors like consumer staples and health care saw modest gains of 0.6% and 0.4%.
Monday’s losses pushed the S&P 500 into negative territory for 2025. Scott Ladner, chief investment officer at Horizon Investments, noted that sentiment remains low but emphasized the U.S. economy remains strong, with corporate earnings growth between 10% and 15%. He added that there is no indication of an impending recession. New York Federal Reserve President John Williams is scheduled to speak Tuesday afternoon.
— news from CNBC