On Tuesday morning, U.S. stock futures experienced a slight downturn. This follows an upward trend in the major averages due to increasing optimism that President Donald Trump might scale back his initial plans for broad-ranging tariffs.
Futures linked to the S&P 500 decreased by 0.15%, while Nasdaq 100 futures dropped 0.23%. The Dow Jones Industrial Average futures lost 68 points, equating to a 0.16% decline.
During Monday’s session, the 30-stock Dow surged nearly 600 points, or approximately 1.4%. The broad-market S&P 500 increased almost 1.8%, and the tech-heavy Nasdaq Composite climbed 2.3%.
Despite this, Wall Street remains cautious about potential inflation increases and slowing economic growth as it anticipates reciprocal tariffs from the Trump administration on April 2. Reports from The Wall Street Journal and Bloomberg News indicated that the White House might narrow the scope of the tariffs.
Later on Monday, Trump informed the press that he “may give a lot of countries breaks” regarding reciprocal tariffs. He added that duties on certain sectors, such as pharmaceuticals and autos, would still be implemented in the “near future.”
Although the major averages posted consecutive winning sessions on Monday, these gains follow a tumultuous past month for stocks. Earlier this month, the S&P 500 briefly entered correction territory.
“Typically during market corrections, the stock market recovers almost as fast as it declines,” stated Jim Elios, founder of Elios Financial Group. “So we believe that we are on the other side of this market correction and that stocks should continue to move higher, albeit with some volatility.”
Traders will focus on several economic releases on Tuesday. March’s consumer confidence data and February’s new home sales data are scheduled for release. Additionally, the Richmond Federal Reserve’s manufacturing index for March is due. Fed Governor Adriana Kugler and New York Fed President John Williams are also set to speak at events.
— news from CNBC