U.S. stock futures fell Tuesday as the market awaited clarity from President Trump’s tariff policy rollout. Tuesday also marks the beginning of the second quarter after a bumpy first quarter. The Dow Jones Industrial Average futures slid 253 points, or 0.6%, and S&P 500 futures were down 0.4%.
The White House is expected to unveil reciprocal tariffs on goods from virtually all countries. Investors had been hoping for a narrower approach toward administering the levies. According to The Washington Post, the Trump administration may implement tariffs of about 20% on most imports into the U.S., though no final decision has been made.
The uncertainty has put stocks on a rollercoaster ride, with the S&P 500 touching a six-month low on Monday before recovering. For the first quarter, the S&P 500 lost 4.6%, and the Nasdaq Composite dropped 10%, marking the worst quarterly performance for both benchmarks since 2022. The Dow dropped 1.3% during the first three months of the year.
“While the higher event risk baked in creates room for a potential relief rally in case of less aggressive tariffs, the risk arguably is still to the downside, with markets likely underpricing the trade risks,” Barclays assistant vice president Anshul Gupta wrote in a Tuesday note. On Tuesday, traders will watch for the ISM manufacturing index for March, alongside February’s job openings and construction spending reports.
Stock market braces for tariff impact
These are some of the stocks moving before the bell on Tuesday:
– PVH Corp.: The fashion stock soared 15.6% on stronger-than-expected earnings for the fourth quarter. The Calvin Klein and Tommy Hilfiger parent posted $3.27 per share, excluding items, on $2.37 billion in revenue. Analysts had forecast $3.21 per share on revenue of $2.33 billion.
– Johnson & Johnson: Shares pulled back 4% after a U.S. bankruptcy judge rejected the health-care product maker’s $10 billion settlement proposal tied to lawsuits alleging its baby powder and other talc products caused ovarian cancer. – Shake Shack: Shares of the burger chain rose 3% following Loop Capital Markets’ upgrade to buy from hold. Asia-Pacific markets mostly climbed on Tuesday, recovering from a sharp sell-off in the previous session as investors awaited clarity on U.S. President Donald Trump’s tariff rollout.
Australia’s ASX 200 rose 1.04% to end the day at 7,925.20, while Japan’s Nikkei 225 closed flat at 35,624.48. South Korea’s Kospi advanced 1.62% to end the day at 2,521.39. Wall Street’s VIX index, which tracks market volatility, rose for the fourth day on Monday.
At one point, during the worst of the morning sell-off, the VIX reached 24.80, before closing at 22.28. High VIX levels indicate market participants expect large price swings, while low levels suggest more confidence and risk-taking.
Image Credits: Photo by Annie Spratt on Unsplash
