US Stocks Likely To Open Lower After 2-Day Advance: Clear And Measured Tariff Plan Could 'Trigger A Strong Relief Rally,' Says Expert
U.S. stock futures declined on Tuesday, after advancing for two consecutive sessions on Friday and Monday.
Futures of major benchmark indices were lower in premarket trading, signaling some profit-taking after two days of advances.
President Donald Trump said Monday that automobile tariffs are imminent, though not all will take effect by April 2. During a White House briefing, he suggested some countries may be exempt but provided no details, per Reuters.
He also introduced a 25% tariff on nations purchasing Venezuelan oil or gas, impacting global prices. A White House official stated that the timeline for industry-specific tariffs, including those on automobiles, pharmaceuticals, and semiconductor chips, remains unclear.
The 10-year Treasury yield stood at 4.35%, while the two-year yield was at 4.05%. According to the CME Group's FedWatch tool, there is an 89.2% chance that the Federal Reserve will keep the interest rates unchanged during its May meeting.
Futures
Change (+/-)
Nasdaq 100
-0.31%
S&P 500
-0.18%
Dow Jones
-0.15%
Russell 2000
-0.49%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Tuesday. The SPY was down 0.11% to $573.44, while the QQQ declined 0.24% to $489.50, according to Benzinga Pro data.
Cues From Last Session:
Consumer discretionary, communication services, and industrials led a broad market rally on Monday, driving U.S. stocks higher.
Tesla Inc. (NASDAQ:TSLA), Meta Platforms Inc. (NASDAQ:META), and Nvidia Corp. (NASDAQ:NVDA) saw significant jumps, with Tesla up around 12%. This optimism was fueled by President Trump’s softened stance on tariffs ahead of the April 2, 2025 deadline, and strong March service sector data.
Specifically, the S&P Global Services PMI climbed to 54.3, and the Chicago Fed National Activity Index rose to 0.18. However, the S&P Global U.S. Manufacturing PMI fell to 49.8, and utility stocks ...