Stock Market Futures Hold Steady Amid Hopes for Tariff Relief and Consumer Confidence Data
As of early Tuesday, futures tied to the S&P 500 were flat, indicating a cautious stance among investors. Meanwhile, Nasdaq-100 futures hovered just below the flatline, while Dow Jones Industrial Average futures ticked up slightly by six points.
The Conference Board is set to release its consumer confidence index at 10 a.m. ET. Analysts surveyed by Dow Jones expect the index to drop to 93.5, down from 98.3 in February. This data point is closely watched by investors as a measure of consumer sentiment, which could affect future spending and economic growth.
During Monday’s trading session, the Dow Jones Industrial Average surged nearly 600 points, marking a 1.4% gain. The broader S&P 500 advanced approximately 1.8%, while the tech-heavy Nasdaq Composite outpaced other indexes with a 2.3% increase. This positive momentum reflects growing optimism that the White House may adopt a more measured approach to its proposed reciprocal tariffs.
Reports from major outlets like The Wall Street Journal and Bloomberg News suggested that the Trump administration might narrow the scope of the planned tariffs. This news sparked optimism among traders who feared the economic impact of broad-based tariffs on global trade.
In a statement to the press late Monday, Trump indicated that he “may give a lot of countries breaks” on reciprocal tariffs, while reiterating that duties on certain sectors such as pharmaceuticals and automobiles would still proceed in the near future.
Despite recent gains, the U.S. stock market has experienced significant volatility throughout the past month. Earlier this month, the S&P 500 briefly entered correction territory, reflecting a decline of 10% from its previous peak.
In corporate news, Alcon, a leading medical device and pharmaceutical company, received a buy rating from Bank of America on Tuesday. Analysts expect the company to enter an earnings upgrade cycle fueled by upcoming product launches.
Bank of America raised its price target on Alcon stock from $92 to $108 per share, signaling an anticipated 17% upside from Monday’s closing price of $92.35.
In after-hours trading, Alcon shares rose 0.91% to $93.19, reflecting positive investor sentiment following the upgraded rating.
Asian markets showed mixed performance on Tuesday as investors processed news surrounding U.S. tariff threats.
The Hang Seng Index in Hong Kong fell 2.35%, closing at 23,344.25, while the Hang Seng Tech Index dropped 3.82% to 5,517.52. Meanwhile, China’s CSI 300 remained flat at 3,932.30.
India’s Nifty 50 rose 0.32%, while the BSE Sensex traded flat by mid-afternoon.
Japan’s Nikkei 225 increased 0.46% to 37,780.54.
South Korea’s Kospi Index declined 0.62% to 2,615.81, with the Kosdaq small-cap index down 1.24%.
Australia’s S&P/ASX 200 ended the day unchanged at 7,942.50.
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According to Mohamed El-Erian, chief economic advisor at Allianz, much of the recent market volatility could be attributed to fast-money de-leveraging. El-Erian believes that most of this de-leveraging activity has already occurred, reducing immediate market pressure.
He also predicted that the Federal Reserve is unlikely to implement more than one rate cut this year, citing persistent inflation concerns. “I wouldn’t be surprised if we get no cuts this year unless we enter a recession,” El-Erian added.
Several stocks made significant moves in after-hours trading on Monday:
As stock market futures continue to hold steady, investors remain focused on upcoming economic data and potential policy shifts that could shape market direction in the coming weeks.
