After ending yesterday’s highly volatile session mixed, stocks are likely to show a strong move to the upside in early trading on Tuesday. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 2.7 percent.
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.
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Tuesday. Japan’s Nikkei 225 Index spiked by 6.0 percent, while China’s Shanghai Composite Index jumped by 1.6 percent.
The major European markets have also shown strong moves to the upside. While 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.
In commodities trading, 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.
Business News
U.S. Stocks May See Early Rally On Optimism About Trade Talks
2025-04-08 12:50:10
