US Futures Tumble As Traders Await Trump's Congress Address: 'Volatility Is Certainly Being Fed By Trump 2.0 Moves,' Says Expert

U.S. stock futures declined on Tuesday following the worst trading day of 2025 on Monday. Futures of all benchmark indices fell in premarket trading except Nasdaq 100.

Investor anxiety over tariffs loomed as the March 4 deadline for tariff imposition on Mexico and Canada neared. President Donald Trump indicated on Monday that there was “no room left” for tariff negotiations with Canada and Mexico. He will be addressing the Congress today, which is expected to give further clarity on tariffs and other policies.

Meanwhile, the Treasury yields slipped further on Tuesday. The 10-year Treasury yield stood at 4.16%, while the two-year yield was at 3.93%. According to the CME Group's FedWatch tool, there is a 91% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.

Futures	Change (+/-)
Nasdaq 100	0.03%
S&P 500	-0.06%
Dow Jones	-0.07%
Russell 2000	-0.33%

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. SPY was up 0.046% to $584.04, and QQQ advanced 0.23% to $498.20, according to Benzinga Pro data.

Cues From The Last Session

Real estate, consumer staples, health care and utilities were the only sectors that advanced on Monday. The market witnessed the second worst trading day of March ever as information technology, energy, consumer discretionary, and materials led the decline.

On the economic front, February’s S&P final U.S. manufacturing PMI came in at 52.7 as compared to the preliminary reading of 51.6. This was at a 32-month high signaling an improvement in the health of the manufacturing sector.

The ISM Manufacturing PMI rose to 50.3 in February 2025, indicating a second consecutive month of slight expansion for U.S. manufacturing. In January, private residential construction spending decreased by 0.4%, with notable reductions in both multifamily construction and home improvement expenditures.

Index	Performance (+/-)	Value
Nasdaq Composite	-2.64%	18,350.19
S&P 500	-1.76%	5,849.72
Dow Jones	-1.48%	43,191.24
Russell 2000	-2.81%	2,102.24

Insights From Analysts

Bearish investor sentiment surged to a near-historic 60.6% in late February, the highest in 30 months, signaling a potential contrarian buying opportunity.

Ryan Detrick of Carson Research noted that historically, stocks average a 28% gain a year after such high bearish readings, although exceptions like 2008 exist. He observed that even at a 55% bearish threshold, returns are generally strong.

Detrick suggests that barring a financial crisis, which he deems unlikely, "investors willing to stay strong and not panic sell" could see significant gains, with the S&P 500 averaging nearly 13% higher in six months and 18% in a year following similar sentiment spikes.

Talking about the effects of Trump's policies on the market, the chairman and CIO of Navellier & Associates, Louis Navellier said, "The volatility is certainly being fed by Trump 2.0 moves, with tariffs scheduled to be launched soon,"

Economist Jeremy Siegel, on the other hand, stated that investors are taking profits on high-flying tech and reconsidering value stocks. However, he added that slowing economic growth could hamper the value stocks as well. "In a weakening economy, all stocks face challenges, though dividend-paying and more defensive equities may benefit from lower interest rates," he added.

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep on Tuesday:

New York Fed President John Williams will speak at 2:20 p.m. ET, whereas, Richmond Fed President Tom Barkin will speak at an undetermined time.

Stocks In Focus:

Crowdstrike Holdings Inc. CRWD was up 0.34% in the premarket on Tuesday ahead of its earnings, which will be released after the opening bell. Analysts expect it to report earnings of 86 cents per share on revenue of $1,034.3 million.

Target Corp. TGT advanced 0.39% as Wall Street expects it to report quarterly earnings of $2.25 per share on revenue of $30.85 billion before the opening bell.

Green Dot Corporation. GDOT jumped 15.50% as it surpassed fourth-quarter earnings and revenue expectations and appointed Kim Olson as the new CFO.

Walgreens Boots Alliance Inc. WBA climbed 6.14% as private equity firm Sycamore Partners could take the company private by Thursday this week, reported WSJ.

Sacks Parente Golf Inc. SPGC slumped 37.16% after it announced a 1-for-30 reverse stock split.

Tenaya Therapeutics Inc. TNYA dropped 25.02% as the company announced plans for a public offering of units, including common stock and two warrant series, plus pre-funded units with immediately exercisable warrants.

Sphere Entertainment Co. SPHR was 0.16% lower as it missed the earnings estimates.

Biodesix Inc. BDSX surged 18.65% after reporting a total revenue reaching $71.3 million, up 45% year-on-year.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading lower in the early New York session by 1.11% to hover around $67.61 per barrel.

The gold spot index was up by 0.90% to $2,919.13 per ounce. Its last record high was at $2,956.37 per ounce. The Dollar Index was down 0.46% at the 106.254 level.

Asian markets were lower on Tuesday as India's S&P BSE Sensex, China's CSI 300, South Korea's Kospi, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng index declined. European markets were also lower in trade.

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