U.S. stock futures jumped early Monday on reports President Donald Trump was planning on holding back some of the tariffs initially scheduled for April 2. This raises hopes the U.S. won’t plunge the globe into an all-out trade war. Futures tied to the Dow Jones Industrial Average advanced 305 points, or 0.7%.
S&P 500 futures added 0.9%, while Nasdaq 100 futures were 1.2% higher. Stocks are coming off of a much-needed winning week. The S&P 500 finished in the green on Friday and avoided four straight weekly losses.
#MarketAlert | Many stocks have recovered from over 10% to as much as 24% from March lows
Take a quick look at the top gainers from the recent market slump👇#Nifty #StockMarket #StockMarketIndia pic.twitter.com/uD5nGOB0A1
— ET NOW (@ETNOWlive) March 24, 2025
However, investors remain jittery as Trump’s April 2 start date for reciprocal tariffs approaches. Trump has said the tariffs are aimed at any country that imposes duties on U.S. imports.
However, the Wall Street Journal reported, citing an administration official, that the tariffs are expected to be more narrow in scope and will likely exclude some industry-specific duties.
Another news outlet reported that Trump will exempt some nations from the tariffs.
Both reports noted that the situation remains fluid, and the plans could change.
Stock Market: Investors gain Rs 22.12 lakh crore in 5 days as Sensex zooms 3076 points or 4%#StockMarket https://t.co/q4E0QUcjZd
— ET NOW (@ETNOWlive) March 22, 2025
Trump seemingly lowered the temperature for investors on Friday after telling reporters there could be “exceptions” for his reciprocal tariff plan. That helped push significant averages into the green for the session. In a Sunday note, Bank of America’s trading desk said, “Equities feel ripe for a bounce.”
“Positioning hurdles have been cleared, sentiment has reset, flows are turning tailwinds, and growth concerns are well flagged.”
New 52-week lows among S&P 500 members didn’t aggressively spike in recent correction … not quite as close to fall 2023 and nowhere near prior bear markets pic.twitter.com/SZQyxvdW4l
— Liz Ann Sonders (@LizAnnSonders) March 24, 2025
Tariff delay impacts futures positively
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 a rapid fall in stocks starting in late February, with the S&P 500 closing in correction territory at one point. However, investors received encouraging words from Federal Reserve Chair Jerome Powell, who noted that any potential negative impacts from Trump’s tariffs would likely be short-lived.
On the data front this week, investors will receive consumer confidence reading on Tuesday, followed by initial weekly jobless claims figures on Thursday. After last week’s small gain, the S&P 500 is 7.8% off its record high. The Nasdaq Composite also snapped a four-week losing streak last week with a small gain and is 12% off its record high.
