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