US Stocks Likely To Open Lower After 2-Day Advance: Clear And Measured Tariff Plan Could 'Trigger A Strong Relief Rally,' Says Expert

U.S. stock futures declined on Tuesday, after advancing for two consecutive sessions on Friday and Monday.

Futures of major benchmark indices were lower in premarket trading, signaling some profit-taking after two days of advances.

President Donald Trump said Monday that automobile tariffs are imminent, though not all will take effect by April 2. During a White House briefing, he suggested some countries may be exempt but provided no details, per Reuters.

He also introduced a 25% tariff on nations purchasing Venezuelan oil or gas, impacting global prices. A White House official stated that the timeline for industry-specific tariffs, including those on automobiles, pharmaceuticals, and semiconductor chips, remains unclear.

The 10-year Treasury yield stood at 4.35%, while the two-year yield was at 4.05%. According to the CME Group's FedWatch tool, there is an 89.2% chance that the Federal Reserve will keep the interest rates unchanged during its May meeting.

Futures	Change (+/-)
Nasdaq 100	-0.31%
S&P 500	-0.18%
Dow Jones	-0.15%
Russell 2000	-0.49%

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, dropped in premarket on Tuesday. The SPY was down 0.11% to $573.44, while the QQQ declined 0.24% to $489.50, according to Benzinga Pro data.

Cues From Last Session:

Consumer discretionary, communication services, and industrials led a broad market rally on Monday, driving U.S. stocks higher.

Tesla Inc. TSLA, Meta Platforms Inc. META, and Nvidia Corp. NVDA saw significant jumps, with Tesla up around 12%. This optimism was fueled by President Trump’s softened stance on tariffs ahead of the April 2, 2025 deadline, and strong March service sector data.

Specifically, the S&P Global Services PMI climbed to 54.3, and the Chicago Fed National Activity Index rose to 0.18. However, the S&P Global U.S. Manufacturing PMI fell to 49.8, and utility stocks closed slightly lower, bucking the overall positive trend.

Index	Performance (+/-)	Value
Nasdaq Composite	2.27%	18,188.59
S&P 500	1.76%	5,767.57
Dow Jones	1.42%	42,583.32
Russell 2000	2.55%	2,109.38

Insights From Analysts:

As the market has rebounded after Trump’s softer stance on tariffs, “Recent calm suggests advisors may have persuaded Trump to hold off the worst, but clarity is essential,” said senior economist Jeremy Siegel.

“A clear and measured tariff plan—particularly if it avoids broad retaliation—could trigger a strong relief rally,” he added.

Market watchers are keenly focused on international trade, with April 2nd emerging as a pivotal date, according to Siegel. The anticipated release of President Trump’s reciprocal tariff plans on that day holds the potential to either alleviate or exacerbate existing trade war concerns, he noted.

Siegel emphasized that the recent 10% equity downturn from December’s peaks underscores the significant investor apprehension surrounding unpredictable tariff announcements and their potential to destabilize global market sentiment.

Talking about the Federal Reserve’s commentary last week, Siegel added, “Fed Chair Powell's tone emphasized flexibility, dismissing long-term inflation fears tied to tariffs, and citing evidence from the financial markets muted long-term expectations. It's no surprise equities liked that combination from Powell, but sentiment remains jittery on tariff side.”

According to Kathy Jones, managing director and chief fixed income strategist at the Schwab Center for Financial Research, the markets were stuck in a range amid policy uncertainty.

“Some of the proposed policies are expected to slow growth such as tariffs and limits on immigration, while tax cuts and deregulation could boost growth. Similarly, some policies are likely to raise inflation pressures while slower growth could reduce them. With the Fed on hold amid the policy ‘uncertainty,’ the market is stuck in a range.”

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye On Tuesday:

The S&P Case-Shiller home price index for 20 cities is scheduled to be released at 9 a.m. ET.

Consumer confidence and new home sales data are scheduled to be released at 10 a.m. ET.

Stocks In Focus:

Core & Main Inc. CNM was up 2.30% in premarket on Monday ahead of its earnings before the opening bell. Analysts expect quarterly earnings of 36 cents per share on the revenue of $1.67 billion.

GameStop Corp. GME was 0.27% higher as Wall Street expects it to report earnings of 8 cents per share on revenue of $1.48 billion after the closing bell.

Worthington Enterprises Inc. WOR slipped 0.15% ahead of its earnings after the closing bell. Analysts expect quarterly earnings of 71 cents per share on revenue of $285.54 million.

KB Home. KBH slumped 9.37% after reporting weaker-than-expected first-quarter results after the closing bell on Monday. KB Home said it expects full-year 2025 housing revenue to be in the range of $6.6 billion to $7 billion.

Trump Media & Technology Group Corp. DJT surged 9.80% after it announced a partnership with cryptocurrency exchange Crypto.com to introduce a series of exchange-traded funds.

WANG & LEE GROUP Inc. WLGS plunged 7.31% after the company announced the pricing of a $12.0 million registered direct offering.

23andMe Holding Co. ME dropped 5.77% after the company announced it had initiated voluntary Chapter 11 bankruptcy to pursue a strategic sale and secured $35M in DIP financing.

Prairie Operating Co. PROP spiraled 19.45% after it priced a $38.5 million public offering of common stock at $4.50 per share, with net proceeds expected to be approximately $35.4 million. Underwriters have a 30-day option to purchase an additional $5.8 million in shares.

Atomera Inc. ATOM plummeted 15.94% following the resignation of VP Shawn Thomas, effective March 28, 2025.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.52% to hover around $69.48 per barrel.

Gold Spot US Dollar gained 0.26% to hover around $3,019.99 per ounce. Its previous record high stood at $3,057.51 per ounce.

Asian markets closed on a mixed on Tuesday. China’s CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi index fell in trade. Whereas, India's S&P BSE Sensex, Japan's Nikkei 225, and Australia's ASX 200 index advanced. European markets were mostly higher in early trade.

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