U.S. stock futures are climbing higher this morning as investors digest comments from a top Trump administration official hinting at a potential scaling back of tariffs on Canada and Mexico.
As of 03:49 ET (08:49 GMT):
- Dow futures were up 248 points (0.6%)
- S&P 500 futures gained 39 points (0.7%)
- Nasdaq 100 futures climbed 168 points (0.8%)
Recap: Tuesday’s Market Sell-Off
Tuesday’s session saw broad declines across Wall Street, with stocks sinking in reaction to newly imposed U.S. tariffs on Canada, Mexico, and the doubling of duties on China. With all three nations vowing retaliation, concerns over a global trade war rattled investors:
- S&P 500 fell 1.2%
- Dow Jones Industrial Average dropped 1.5%
- Nasdaq Composite dipped 0.4%, flirting with correction territory
Automakers, which have deeply integrated supply chains across North America, took a hit:
- General Motors (NYSE: GM) dropped 4.6%
- Ford (NYSE: F) slid 2.9%
Trump’s Address: “America Is Back”
During a 100-minute primetime speech to Congress, President Trump highlighted his administration’s aggressive policy actions, including:
- A revamped U.S. trade stance
- Foreign policy shifts
- Government restructuring, led by Elon Musk’s Department of Government Efficiency
Trump justified the tariffs, stating they would cause a “short-term disturbance” but emphasized that “we’re OK with that.”
Lutnick Suggests a Tariff Compromise May Be Near
Commerce Secretary Howard Lutnick hinted that a deal to scale back tariffs on Canada and Mexico could be announced as soon as today. According to Lutnick, Trump is open to “meeting in the middle” after previously delaying the tariffs to allow both countries time to tighten border security.
While Canada and Mexico took some steps, Trump indicated their efforts were not enough, leading to the imposition of 25% tariffs on Mexican imports and Canadian non-energy goods. China, meanwhile, faced a doubling of duties to 20%.
Key Economic Data Ahead: ISM Services PMI
Investors are also watching today’s ISM non-manufacturing PMI, which measures U.S. services sector activity. This comes after recent data signaled potential economic weakness:
- ISM manufacturing PMI barely held above expansion levels
- Factory prices hit a three-year high
- New orders declined, signaling concerns over the tariffs’ impact
With tepid consumer spending, a rising trade deficit, and weaker homebuilding data, the market is on alert for any signals of sluggish Q1 growth.
Bitcoin Rebounds Amid Tariff Hopes
Bitcoin bounced back on Wednesday after heavy volatility in recent days, falling below $80,000 before recovering. The rebound was fueled by bargain buying and optimism that Trump’s administration may ease trade war tensions.
A recent White House proposal for a strategic crypto reserve that includes Bitcoin and four other digital assetsbriefly lifted the market earlier this week.
Oil Dips on Supply Concerns
Oil prices edged lower as traders weighed:
- Plans by major producers to boost output in April
- Fears of a widespread trade conflict dampening demand
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