U.S. Stocks May Move Back To The Upside After Yesterday’s Recovery

After recovering from an early sell-off to end Monday’s session mixed, stocks are likely to move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.5 percent.

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.

Shortly after the start of trading, 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. Construction spending is expected to rise by 0.3 percent in February after dipping by 0.2 percent in January.

Additionally, 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.

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

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index crept up by less than tenth of a percent, while China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index both rose by 0.4 percent.

The major European markets have also moved to the upside on the day. While 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.

In commodities trading, 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.