The major U.S. index futures on the Dow Jones, S&P and Nasdaq 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.
Dow Jones, S&P, Nasdaq, Futures Pointing To Sharply Higher Open On Wall Street
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