Futures Pointing To Sharply Higher Open On Wall Street

The major U.S. index futures are currently pointing to a sharply higher open on Tuesday, with stocks likely to show a strong move to the upside after ending yesterday’s highly volatile session mixed.

Stocks on Wall Street appear poised to follow overseas markets higher amid optimism about negotiations on President Donald Trump’s new tariffs.

Treasury Secretary Scott Bessent said approximately 70 countries have approached the White House about trade talks, with Japan purportedly getting priority status.

“I think you are going to see some very large countries with large trade deficits come forward very quickly,” Bessent said during an interview on CNBC. “If they come to the table with solid proposals, I think we can end up with some good deals.”

Traders may also look to pick up stocks at reduced levels following the recent nosedive, which saw the major averages hit their lowest intraday levels in over a year on Monday before regaining ground.

Buying may remain somewhat tentative, however, as tensions over tariffs continue to rise between the U.S. and China.

China has vowed to “fight to the end” after Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

Following the nosedive seen over last Thursday and Friday’s sessions, stocks saw substantial volatility over the course of the trading day on Monday. The major averages spent the day swinging back and forth across the unchanged line before eventually closing mixed.

While the tech-heavy Nasdaq inched up 15.48 points or 0.1 percent to 15,603.26 after plummeting by more than 5 percent in early trading, the S&P 500 dipped 11.83 points or 0.2 percent to 5,062.25 and the Dow slid 349.26 points or 0.9 percent to 37,965.60.

Stocks initially extended the sell-off seen over the two previous sessions amid ongoing concerns about the impact of Trump’s new tariffs and retaliatory moves by U.S. trade partners.

Selling pressure waned shortly after the start of trading, however, leading some traders to pick up stocks at reduced levels after the major averages hit their lowest intraday levels in over a year.

The S&P 500 also briefly joined the Nasdaq in bear market territory, plunging by more than 20 percent from its record closing high in February.

The subsequent rebound also reflected a headline indicating Trump is considering pausing new tariffs for 90 days, although the White House has since dismissed the report.

Nonetheless, traders seemed reluctant to make more significant bets about uncertainty about whether the markets have reached a bottom amid ongoing trade war concerns.

Adding to worries about a global trade war, Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

Trump also threatened to terminate negotiations with China even as he said his administration is in talks with “countries from all over the world” and “tough but fair parameters are being set.”

White House National Economic Council Director Kevin Hassett claimed in an appearance on ABC’s “This Week” that more than 50 countries have reached out to Trump to begin negotiations.

“Investors will be sitting on the edge of their seat waiting to see if anyone strikes a deal with Trump,” said Russ Mould, investment director at AJ Bell. “Tariff-related deals are likely to be high up the list of catalysts to drive a recovery in markets, and the next few weeks are going to be crucial in terms of getting a better idea of the new lay of the land.”

“Negotiations may not produce rapid results so there could be prolonged uncertainty and that spells heightened market volatility,” he added. “Trump will drive a hard bargain and won’t back down or soften the blow unless the US gets something big in return.”

Housing stocks finished the day sharply lower, dragging the Philadelphia Housing Sector Index down by 3.6 percent to its lowest closing level in well over a year.

Substantial weakness was also visible among commercial real estate stocks, as reflected by the 2.6 percent plunge by the Dow Jones U.S. Real Estate Index.

Utilities, pharmaceutical and telecom stocks also showed notable moves to the downside, while semiconductor stocks rallied, driving the Philadelphia Semiconductor Index up by 2.7 percent.

Computer hardware stocks also showed a significant move to the upside, with the NYSE Arca Computer Hardware Index jumping by 1.8 percent.

Commodity, Currency Markets

Crude oil futures are rising $0.32 to $61.02 a barrel after tumbling $1.29 to $60.70 a barrel on Monday. Meanwhile, after plunging $61.80 to $2,973.60 an ounce in the previous session, gold futures are surging $49.60 to $3,023.20 an ounce.

On the currency front, the U.S. dollar is trading at 146.87 yen compared to the 147.84 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0957 compared to yesterday’s $1.0912.

Asia

Asian stocks advanced on Tuesday, with Japanese markets leading regional gains after U.S. Treasury Secretary Scott Bessent said Japan is likely to be prioritized in trade talks with the Trump administration.

Some calm returned to the markets even as trade tensions escalated, with Beijing saying that the U.S. threat to escalate tariffs against China is a “mistake on top of a mistake” and amounts to blackmail.

Treasuries yields and the dollar were steady in Asian trading, while gold fell toward $3,000 per ounce. Oil edged up slightly after hitting a nearly four-year low in the previous session.

China’s Shanghai Composite Index rallied 1.6 percent to 3,145.55 as the government unleashed a series of measures to stabilize stocks.

The People’s Bank of China set the so-called fixing at 7.2038 per dollar, the weakest since September 2023, to raise the appeal of exports.

Hong Kong’s Hang Seng Index jumped 1.5 percent to 20,127.68 as several Chinese state holding companies vowed to increase share investment and a slew of listed companies announced share buybacks.

Japanese markets logged strong gains as Trump assigned two members of his cabinet to kick off bilateral trade talks after a call with Prime Minister Shigeru Ishiba.

The Nikkei 225 Index surged 6.0 percent to 33,012.58, while the broader Topix Index settled 6.3 percent higher at 2,432.02.

Nippon Steel soared 6 percent after Trump ordered a fresh review of the company’s proposed takeover of U.S. Steel that was blocked by his predecessor Joe Biden.

Seoul stocks ended slightly higher as Trump signaled he could be open to some negotiations. The Kospi closed up 0.3 percent at 2,334.23, giving up some early gains.

Australian markets logged their best daily gain for 2025 after a sharp sell-off over the past three sessions.

The benchmark S&P/ASX 200 Indedx rallied 2.3 percent to 7,510, led by gains in energy and technology stocks. Consumer discretionary stocks also rallied, with Bunnings owner Wesfarmers surging 3 percent.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 1.0 percent to 11,891.44.

Europe

European shares have shown a strong move back to the upside on Tuesday following a four-day losing streak on tariff-related worries.

European Commission President Ursula von der Leyen said the EU had offered U.S. President Donald Trump a “zero-for-zero tariffs” deal for industrial goods as part of trade negotiations.

She has reiterated that the bloc was also prepared to impose countermeasures should talks fail. Trump promptly rejected the deal.

The German DAX Index is up by 2.6 percent, the U.K.’s FTSE 100 Index is up by 2.5 percent and the French CAC 40 Index is up by 2.4 percent.

Defense-related stocks surged, with Rolls-Royce Holdings, Renk Group and Saab showing significant moves to the upside.

German chipmaker Infineon Technologies AG has slumped after it agreed to acquire Marvell Technology’s automotive ethernet business for about $2.5 billion.

In economic news, France’s trade deficit widened to a five-month high in February on rising imports, data from the customs office showed.

The trade shortfall unexpectedly rose to 7.9 billion euros in February from 6.5 billion euros in January. This was the biggest deficit since September.

U.S. Economic News

The Treasury Department is scheduled to announce the results of this month’s auction of $58 billion worth of three-year notes at 1 pm ET.

At 2 pm ET, San Francisco Federal Reserve President Mary Daly is due to participate in a conversation about “The Economic Outlook and Work of the Federal Reserve” hosted by the Brigham Young University Marriott School of Business.