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 give back ground after moving notably higher over the two previous sessions.

Traders may look to cash in on the recent strength in the markets amid lingering uncertainty about President Donald Trump’s tariff plans.

Selling pressure may be somewhat subdued, however, as Trump indicated a potential temporary tariff exemption for the auto industry, especially for counties like Mexico and Canada.

At the same time, there were reports that the U.S. was kicking off investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs.

After moving sharply higher over the course of last Friday’s session, stocks fluctuated over the course of the trading day on Monday but managed to end the day mostly higher. The major averages all finished the day firmly positive, climbing further off the one-year lows hit last Tuesday.

The Dow jumped 312.08 points or 0.8 percent to 40,524.79, the Nasdaq rose 107.03 points or 0.6 percent to 16,831.48 and the S&P 500 climbed 42.61 points or 0.8 percent to 5,405.07.

The higher close on Wall Street came after U.S. Customs and Border Protection guidance issued late Friday revealed certain tech products will be excluded from Trump’s “reciprocal tariffs.”

The excluded products purportedly include smartphones and computers as well as other devices and components like semiconductors.

However, adding to the uncertainty surrounding tariffs, Trump claimed in a post on Truth Social that there was “no Tariff ‘exception’ announced,” noting the products are still subject to exiting 20 percent fentanyl tariffs are just moving to a “different Tariff ‘bucket.'”

“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump said.

“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he added. “What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries.”

Biotechnology stocks showed a substantial move to the upside on the day, resulting in a 2.5 percent surge by the NYSE Arca Biotechnology Index.

Considerable strength was also visible among commercial real estate stocks, as reflected by the 2.1 jump by the Dow Jones U.S. Commercial Real Estate Index.

Pharmaceutical, computer hardware and utilities stocks also saw significant strength, closing higher along with most of the major sectors.

Commodity, Currency Markets

Crude oil futures are sliding $0.50 to $61.03 a barrel after inching up $0.03 to $61.53 a barrel on Monday. Meanwhile, after falling $18.30 to $3,226.30 an ounce in the previous session, gold futures are rising $5 to $3,231.40 an ounce.

On the currency front, the U.S. dollar is trading at 142.65 yen compared to the 143.06 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1334 compared to yesterday’s $1.1351.

Asia

Asian stocks ended mixed on Tuesday as investors watched the latest headlines on the tariff front.

U.S. President Donald Trump indicated a potential temporary exemption for the auto industry from tariffs, especially for counties like Mexico and Canada, but at the same time there were reports that the U.S. was kicking off investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs.

The dollar index inched down in Asian trading and lingered near its three-year low reached last week. Gold held near record levels, while oil edged up, with U.S. and Iran negotiations in focus.

China’s Shanghai Composite Index edged up by 0.2 percent to 3,267.66 after a volatile session. Hong Kong’s Hang Seng Index closed up 0.2 percent at 21,466.27.

Japanese markets rose notably after Trump said he is exploring a pause in auto tariffs. The Nikkei 225 Index jumped 0.8 percent to 34,267.54, while the broader Topix Index settled 1 percent higher at 2,513.35. Honda and Toyota Motor both surged around 4 percent.

South Korea’s Kospi climbed 0.9 percent to 2,477.41, extending gains for a second day ahead of the Bank of Korea’s interest rate decision due on Thursday. Chip and automotive shares led the overall gains.

Australian markets edged up slightly to end higher for a second straight session as the latest RBA policy meeting minutes supported the view for a May rate cut amid global economic uncertainty.

The benchmark S&P/ASX 200 Index rose by 0.2 percent to 7,761.70, with financials and material stocks pacing the gainers. The broader All Ordinaries Index closed up 0.1 percent at 7,969.90.

CSL surged 2.6 percent after Morgan Stanley tipped it to be well positioned to ride out the rocky seas of shifting U.S. trade policy.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.8 percent to 12,011.34 as data showed food inflation in the country accelerated to a 14-month high in March.

Europe

European stocks have advanced on Tuesday after U.S. President Donald Trump said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other countries.

In economic news, Germany’s wholesale price inflation weakened in March after accelerating last month, data from Destatis showed.

Wholesale prices grew 1.3 percent year-on-year in March, following an increase of 1.6 percent in February.

Elsewhere, the U.K. jobless rate remained unchanged in the three months to February, the Office for National Statistics reported.

The unemployment rate was 4.4 percent in the December to February period, unchanged from the preceding period and matched economists’ expectations.

While the French CAC 40 Index is just above the unchanged line, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.7 percent.

Automakers Renault, BMW, Mercedes Benz and Volkswagen have shown strong moves to the upside on the day.

Nivea maker Beiersdorf has also risen after reporting a slight beat in first-quarter sales and confirming its full-year outlook.

B&M European Value Retail has also jumped. The discount retailer delivered strong revenue growth and robust trading performance for the 52-week financial reporting period to March 29, 2025.

Advertising company Publicis Groupe has also moved to the upside as it reported a 9.4 percent increase in first quarter revenue.

Telecom gear maker Ericsson has also moved sharply higher after its first quarter core earnings exceeded estimates.

On the other hand, luxury bellwether LVMH has slumped after its first quarter sales came in below estimates.

Sanofi and AstraZeneca have also fallen after reports that the U.S. is preparing to announce sweeping tariffs on pharmaceutical imports within the next two months.

U.S. Economic News

Import prices in the U.S. edged slightly lower in the month of March, according to a report released by the Labor Department on Tuesday.

The Labor Department said import prices slipped by 0.1 percent in March after rising by a downwardly revised 0.2 percent in February.

Economists had expected import prices to come in unchanged compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the report said export prices were flat in March after climbing by an upwardly revised 0.5 percent in February.

Economists had expected export prices to come in unchanged compared to the 0.1 percent uptick originally reported for the previous month.

A separate report released by the Federal Reserve Bank of New York showed regional manufacturing activity has declined modestly in the month of April.

The New York Fed said its general business conditions index jumped to a negative 8.1 in April after plunging to a negative 20.0 in March, although a negative reading still indicates contraction. Economists had expected the index to rise to a negative 14.5.

Looking ahead, the New York Fed said firms expect conditions to worsen in the months ahead, with the index for future business activity plunging to a negative 7.4 in April from a positive 12.7 in March.

At 11:35 am ET, Richmond Federal Reserve President Thomas Barkin is scheduled speak on “Driving Through the Economic Fog” before a luncheon at the University of North Carolina, Pembroke.

Federal Reserve Board Governor Lisa Cook is due to deliver 2025 Distinguished Alumna Award acceptance remarks at the Cal Alumni Club of Washington, D.C. Annual Reception at 7:10 pm ET.