U.S. stock futures jumped early Monday on reports that President Donald Trump plans to hold back some of the tariffs initially set for April 2. This raised hopes that the U.S. might avoid plunging the globe into an all-out trade war. Futures linked to the Dow Jones Industrial Average advanced 437 points, or 1%.
The S&P 500 added 1.2%, and Nasdaq futures were up 1.6%. Tech shares, which have fallen nine straight weeks, were up 3.6% in premarket trading Monday. The Wall Street Journal reports that the tariffs are expected to be narrower in scope and will likely exclude some industry-specific duties, citing an administration official.
Trump will also exempt some nations from the tariffs, Bloomberg News reported. Both reports noted that the situation remains fluid and plans could change. Trump appeared to lower the temperature for investors on Friday after he told reporters that there could potentially be “negotiations” for his reciprocal tariff plan.
This helped push major averages into the green for the session. The pending duties and Trump’s overall rhetoric on U.S. trade policy have raised fears among investors that the U.S. economy could be on shaky footing. Those concerns were exacerbated by falling stock prices starting in late February, with the S&P 500, at one point, closing in correction territory.
However, investors received encouraging words from Federal Reserve Chair Jerome Powell, who said that any potential negative impacts from Trump’s tariffs will likely be short-lived.
Stock futures rise on tariff delay
Stocks are coming off a much-needed winning week, which saw the major averages end Friday in the green and avoid four-straight weekly losses.
After last week’s small gain, the S&P 500 sits 7.8% off its record high. The Nasdaq Composite also snapped a four-week losing streak last week with a small gain and sits 12% off its record high. Bitcoin reclaimed the $87,000 mark, a level it hasn’t seen since the beginning of the month, as hopeful traders bet Trump’s tariffs planned for April 2 could be more measured than expected.
Bitcoin is currently up 4% in March but still down 6.5% for the year. Shares of several beaten-down technology companies rose during premarket trading Monday. Tesla stock, which has fallen nine straight weeks, jumped 3.6% before market open.
Shares of Meta, formerly known as Facebook, gained roughly 2.7%, while Nvidia added 1.9%. Alphabet, Google’s parent company, also rose. James Hardie Industries announced that it would acquire AZEK in a cash and stock deal valued at nearly $9 billion.
The deal will see AZEK shareholders receive $26.45 in cash and 1.034 ordinary shares of James Hardie, which will be listed on the New York Stock Exchange, for each AZEK share. Investors are also turning their attention to key economic indicators, with the first look at U.S. factory and services activity in March set to be released later today. Additionally, February’s Personal Consumption Expenditures Index, the Federal Reserve’s preferred inflation gauge, is due out on Friday, which will be closely monitored.
Overall, the markets reacted positively to the prospects of a more controlled tariff announcement from the Trump administration, injecting a dose of optimism at the start of the trading week.
Image Credits: Photo by Glenn Carstens-Peters on Unsplash
