Stock futures ticked higher on Tuesday evening, rebounding from a day of market turmoil driven by uncertainty surrounding President Donald Trump's tariff policies. Investors are closely monitoring the situation as they await the upcoming consumer inflation report scheduled for release on Wednesday.
Futures linked to the Dow Jones Industrial Average rose by 84 points, reflecting a gain of 0.2%. Similarly, S&P 500 futures increased by 0.2%, while Nasdaq 100 futures saw a 0.3% uptick. This positive after-hours movement came on the heels of a volatile trading day, during which all three major indices experienced significant losses.
At one point during the trading session, the S&P 500 index found itself down 10% from its recent closing high. Ultimately, the 30-stock Dow finished nearly 480 points lower, marking a decline of 1.1%, while the Nasdaq Composite ended the day with a modest 0.2% drop.
Earlier on Tuesday, President Trump announced plans to double import duties on Canadian steel and aluminum imports to 50%, effective Wednesday. This move was a direct response to Ontario's decision to impose a 25% levy on electricity exports to the U.S. Following this announcement, Ontario Premier Doug Ford stated that he would pause the surcharge, raising further questions about the stability of trade relations.
In a twist, White House trade advisor Peter Navarro told CNBC that while Trump would not raise the Canadian tariffs to 50%, the 25% duty on these metals would still take effect as planned.
Traders are now bracing for another important development on Wednesday: the consumer price index (CPI) reading for February. Economists surveyed by Dow Jones predict a 0.3% increase in CPI for the month, with expectations that headline inflation could rise by 2.9% compared to the same period last year. The results of this report will play a crucial role in shaping the Federal Reserve's forthcoming policy decisions, especially as concerns about inflation and slowing economic growth resurface.
Warren Pies, co-founder of 3Fourteen Research, shared insights on CNBC's Closing Bell, stating, "We're just waiting on some kind of policy response, either from the Fed or the administration. 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."
As the market navigates through this period of uncertainty, investors remain cautious, keeping a close eye on both tariff developments and inflation indicators.