Stocks Observe Trump Hints at Tariff Relief: A Market Rebound in Motion

U.S. stock futures remained largely unchanged on Monday night, following a day of significant gains in the major averages. The uptick in the markets came as investors grew hopeful that President Donald Trump might scale back his initial plans for extensive tariffs. Futures linked to the S&P 500 saw a slight decline of 0.06%, while Dow Jones Industrial Average futures and Nasdaq 100 futures dipped by 0.04% and 0.1%, respectively. This muted activity in the futures market followed a robust performance during Monday’s regular trading session, where the Dow surged by nearly 600 points, a 1.42% increase, the S&P 500 rose by almost 1.8%, and the Nasdaq Composite advanced by 2.3%.

Despite the positive momentum, Wall Street continues to grapple with concerns over potential inflation spikes and decelerating economic growth, particularly as the Trump administration’s reciprocal tariffs loom closer, with an expected implementation date of April 2.

However, optimism emerged during Monday’s session as reports from The Wall Street Journal and Bloomberg News suggested that the White House might limit the scope of these tariffs. Adding to this sentiment, President Trump later addressed the press, hinting at leniency by stating he “may give a lot of countries breaks” on tariffs, though he emphasized that duties on sectors like pharmaceuticals and autos would still be imposed in the “near future.”

The market’s back-to-back winning sessions on Monday mark a recovery from a turbulent month for stocks, which saw the S&P 500 briefly enter correction territory earlier in March.

Typically during market corrections, the stock market recovers almost as fast as it declines.

The worst of the correction may be over, as stocks could continue their upward trajectory, though not without some fluctuations.

Looking ahead, traders are preparing for a busy Tuesday with several key economic data releases on the horizon. March consumer confidence figures will be published, alongside February’s new home sales data and the Richmond Federal Reserve’s manufacturing index for March.

Additionally, market participants will be tuning in to scheduled remarks from Fed Governor Adriana Kugler and New York Fed President John Williams, whose insights could further influence market sentiment. As Wall Street navigates these developments, the balance between optimism and caution remains delicate.