Futures Pointing To Initial Pullback On Wall Street

The major U.S. index futures are currently pointing to a lower open on Tuesday, with stocks likely to move back to the downside after recovering from an early sell-off to end Monday’s session mixed.

Ongoing concerns about President Donald Trump’s trade policies may lead to renewed weakness on Wall Street ahead of the announcement of reciprocal tariffs on Wednesday.

“On Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” White House press secretary Karoline Leavitt said.

“The President will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” she added. “He’s doing this in the best interest of the American worker.”

A report from the Washington Post this morning said White House aides have drafted a proposal to impose tariffs of around 20 percent on most imports to the U.S.

However, the Washington Post noted White House advisers cautioned that several options are on the table and no final decision has been made.

Uncertainty about Trump’s tariff plans have weighed on the markets recently, as traders worry about a global trade war and the potential impact on the economy.

After moving sharply lower early in the session, stocks showed a significant rebound over the course of the trading day on Monday. The major averages climbed well off their worst levels of the day to close mixed.

The Dow jumped 417.86 points or 1 percent to 42,001.76 and the S&P 500 climbed 30.91 points or 0.6 percent to 5,611.85. The Nasdaq bounced well off its lows but still ended the day down 23.70 points or 0.1 percent at 17,299.29

The early weakness on Wall Street came amid ongoing concerns about the impact of Trump’s reciprocal tariffs on U.S. trade partners.

Trump told reporters aboard Air Force One on Sunday that the reciprocal tariffs would target all countries and not just a smaller group with the biggest trade imbalances.

Traders worry Trump’s tariffs and possible retaliatory actions by targeted countries will fuel inflation, keep interest rates elevated and drag down global economic growth.

Selling pressure waned over the course of the session, however, as the Nasdaq and S&P 500 hitting new six-months lows inspired some traders to pick up stocks at reduced levels.

On the U.S. economic front, MNI Indicators released a report showing an unexpected increase by its reading on Chicago-area business activity in the month of March.

MNI Indicators said its Chicago business barometer climbed to 47.6 in March from 45.5 in February. Economists had expected the reading to dip to 44.1.

With the increase, the index reached its highest level since November 2023, although it remained in contraction territory for the sixteenth successive month.

Biotechnology stocks helped lead the rebound on Wall Street, with the NYSE Biotechnology Index surging by 3.3 percent.

Significant strength also emerged among banking stocks, as reflected by the 1.3 percent gain posted by the KBW Bank Index.

Utilities and oil producer stocks also saw notable strength, while considerable weakness remained visible among airline and computer hardware stocks.

Commodity, Currency Markets

Crude oil futures are edging down $0.06 to $71.42 a barrel after surging $2.12 to $71.48 a barrel on Monday. Meanwhile, spiking $36 to $3,150.30 an ounce in the previous session, gold futures are climbing $13.80 to $3,164.10 an ounce.

On the currency front, the U.S. dollar is trading at 149.32 yen compared to the 149.96 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0793 compared to yesterday’s $1.0816.

Asia

Asian stocks ended mostly higher on Tuesday after suffering heavy losses in the previous session on worries about the impact of a trade war on global growth.

Markets awaited more details on U.S. President Donald Trump’s reciprocal tariff announcements set to be announced on Wednesday, which Trump has dubbed “Liberation Day.”

Trump is expected to unveil tariffs targeting all nations, not just specific ones as previously planned.

Gold prices hit a new record high in Asian trading, while the dollar was largely unchanged. Copper gained on strong factory activity data from China, while oil held steady at a one-month high following U.S. threats against Russia and Iran.

China’s Shanghai Composite Index rose 0.4 percent to 3,348.44 as a measure of Chinese manufacturing activity grew more than expected to a four-month high in March and Trump said he expects a deal regarding the sale of TikTok’s U.S. operations to be finalized by the weekend. Hong Kong’s Hang Seng Index climbed 0.4 percent to 23,206.84.

Japanese markets ended marginally higher after Prime Minister Shigeru Ishiba said the country would keep up a strong push for the United States to exempt it from auto tariffs.

Investors also digested the results of a central bank survey that showed a worsening in business sentiment among big manufacturers.

The Nikkei 225 Index closed slightly higher at 35,624.48, while the broader Topix Index settled 0.1 percent higher at 2,661.73.

Seoul stocks rallied on bargain hunting to snap a three-session losing streak. The Kospi surged 1.6 percent to 2,521.39 after the Constitutional Court said it will deliver its ruling on President Yoon Suk Yeol’s impeachment this Friday.

Tech stocks surged, with Samsung Electronics and SK Hynix rising 1.7 percent and 3.3 percent, respectively.

Australian markets rose sharply as the Reserve Bank left its cash rate unchanged amid a hotly contested federal election campaign.

Investors also digested mixed data, with Australian retail sales rising slightly less than expected in February, while the manufacturing PMI hit its highest level since 2022.

The benchmark S&P/ASX 200 Index jumped 1.0 percent to 7,925.20, with miners and gold stocks leading the surge. The broader All Ordinaries Index closed 0.9 percent higher at 8,126.90.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 0.4 percent to 12,312.60.

Europe

European stocks have rebounded on Tuesday ahead of U.S. President Donald Trump’s reciprocal tariffs rollout.

“Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” White House press secretary Karoline Leavitt said.

“The President will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” she added. “He’s doing this in the best interest of the American worker.”

Closer to home, European Commission President Ursula von der Leyen said in a speech today that the European Union is open to negotiations with the U.S. on tariffs but will take retaliatory measures, if necessary,

“We will approach these negotiations from a position of strength. Europe holds a lot of cards, from trade to technology to the size of our market. But this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table,” she said.

In economic news, the HCOB Eurozone Manufacturing PMI came in at 48.6 in March 2025, slightly below the preliminary estimate of 48.7 but up from February’s final reading of 47.6.

Elsewhere, U.K. house prices remained flat as the stamp duty holiday ended at the end of March, data from the Nationwide Building Society showed.

House prices showed nil growth in March compared to February. This followed an increase of 0.4 percent in the previous month. On a yearly basis, house price growth remained unchanged at 3.9 percent in March.

The German DAX Index is up by 1.2 percent, the French CAC 40 Index is up by 0.8 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.

Ipsos SA, a global leader in market research, has shown a strong move to the upside after it entered into exclusive talks to purchase The BVA Family.

Wing turbine manufacturer Nordex SE has also rallied after securing two orders from Swedish renewable energy company OX2 AB to supply in total 70 N175/6.X wind turbines in Finland.

Skanska AB has also jumped after winning a contract worth about SEK 4.5 billion for the Raritan River Bridge Replacement Project in Middlesex County, in the U.S. state of New Jersey.

Greencore Group shares have also surged. The producer of convenience foods has upgraded its full-year profit forecast after strong revenue and volume momentum continued into the second quarter.

Meanwhile, building materials supplier Travis Perkins has plummeted after it swung to a pre-tax loss and cut its dividend.

U.S. Economic News

Richmond Federal Reserve President Thomas Barkin is due to participate in a fireside chat before a hybrid C. Peter McColough Series on International Economics event hosted by the Council on Foreign Relations at 9 am ET.

At 10 am ET, the Institute for Supply Management is scheduled to release its report on manufacturing sector activity in the month of March. The ISM’s manufacturing PMI is expected to slip to 49.5 in March after edging down to 50.3 in February, with a reading below 50 indicating contraction.

The Commerce Department is also due to release its report on construction spending in the month of February at 10 am ET. Construction spending is expected to rise by 0.3 percent in February after dipping by 0.2 percent in January.

Also at 10 am ET, the Labor Department is scheduled to release its report on job openings in the month of February. Job openings are expected to decrease to 7.63 million in February after climbing to 7.74 million in January.