U.S. stock futures remained relatively stable on Monday night, following a day of significant gains in the major averages. This market activity reflects growing optimism that President Donald Trump may scale back his initial plans for extensive tariffs, which has been a source of concern for investors.
Futures linked to the S&P 500 saw a minor decrease of 0.03%, while Dow Jones Industrial Average futures and Nasdaq 100 futures both experienced a slight dip of less than 0.1%. This comes after a robust trading session earlier in the day, where the Dow surged nearly 600 points, marking an increase of approximately 1.4%. The broad S&P 500 index gained nearly 1.8%, and the tech-focused Nasdaq Composite soared by 2.3%.
Despite the gains, Wall Street remains cautious as it anticipates the potential for rising inflation and slowing economic growth. This uncertainty looms large as traders prepare for reciprocal tariffs from the Trump administration, which are set to take effect on April 2. Reports from major outlets such as The Wall Street Journal and Bloomberg News indicate that traders have grown optimistic in light of news suggesting the White House may narrow the scope of the impending tariffs.
Later in the day, President Trump addressed the press, hinting at possible exemptions for several countries regarding the reciprocal tariffs. He noted that while some duties on specific sectors like pharmaceuticals and autos would still be enforced, there may be leniency for others.
Although the major averages enjoyed consecutive winning sessions on Monday, these gains come after a tumultuous period for stocks. Earlier this month, the S&P 500 had even dipped into correction territory. Jim Elios, founder of Elios Financial Group, commented on the market's behavior during corrections, stating that typically, the stock market tends to recover almost as quickly as it declines. He expressed optimism that the market is on the rebound from this correction phase and anticipates that stocks will continue to rise, albeit with some expected volatility.
As traders look ahead, several key economic releases are scheduled for Tuesday. Notable among these is the consumer confidence data for March, alongside February's new home sales figures. Additionally, the Richmond Federal Reserve's manufacturing index for March is expected to be released. Investors will also be attentive to upcoming speeches from Fed Governor Adriana Kugler and New York Fed President John Williams, which could provide further insights into the economic outlook.
