U.S. stock futures experienced a decline on Monday night, reflecting investor uncertainty as the market anticipates crucial updates from President Donald Trump regarding his tariff policy rollout. Futures linked to the Dow Jones Industrial Average decreased by 86 points, translating to a 0.2% drop. Meanwhile, S&P 500 futures and Nasdaq 100 futures saw dips of 0.3% and 0.4%, respectively.
On the preceding day, the S&P 500 and the Dow Jones Industrial Average recorded gains. The broad market index advanced by 0.55%, while the 30-stock Dow surged by 1%. In contrast, the Nasdaq Composite experienced a slight decline of 0.14% during the session. This mixed performance highlights the ongoing volatility in the market driven by external factors, particularly the uncertainty surrounding Trump's economic policies.
The first quarter of 2025 proved challenging for stocks, primarily due to rising concerns about the new Trump administration's economic tariffs. Recently, Trump indicated that his plan for reciprocal tariffs would encompass all countries, leading to unease among investors who had hoped for a more targeted approach to the levies. The market is set to receive additional insights into this matter on Wednesday, April 2, when many of Trump's duties are expected to come into effect.
As the first quarter concluded, stocks ended on a negative note, with the S&P 500 showing a 4.6% decline and the Nasdaq dropping over 10% during this period. Nevertheless, there is a sense of optimism as traders look towards the second quarter. Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, noted that the S&P 500 rebounded during Monday's session, suggesting a potential turnaround. "We saw the retest today; we might get a little bit of a bounce here. We want to buy while we've got a pullback," Wren stated in an interview on CNBC's Closing Bell: Overtime.
At one point on Monday, the broad market index traded 10% below its all-time high, but it managed to recover from that drop, signaling resilience. Wren anticipates a more diversified performance in both earnings and stock movements this year, indicating, "We don't think it's going to be another year where you've got a handful of stocks leading the charge." This perspective aligns with a broader market expectation for recovery and growth.
As traders prepare for the upcoming trading day, attention will be focused on several key economic indicators. On Tuesday, March's manufacturing data will be released, along with February's job openings and construction spending reports. These figures could significantly impact market sentiment and provide further clarity on the economic landscape as it relates to the ongoing tariff discussions.
