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(Bloomberg) — US stock futures edged higher in an effort to extend Wall Street’s Monday rally, overcoming jitters fueled by President Donald Trump’s latest tariff threats.
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Contracts on the Nasdaq 100 rose 0.3% while those on the S&P 500 gained a similar amount, following what was one of the best days for the US stock market this year. In premarket trading, Tesla Inc. looked set to extend recent gains, while Mobileye Global Inc. added 9% after a deal on driver-assistance technology with Volkswagen Group. Crowdstrike Holdings Inc. and Cloudflare Inc rallied after being upgraded by analysts.
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Sentiment remains volatile, however, with investors unnerved by a fresh tariff salvo from Trump. His threat of a 25% levy on any nation purchasing crude from Venezuela lifted Brent crude futures 0.7%, adding to Monday’s gain. The oil price rise fueled a rally in the shares of European oil majors including Shell Plc, BP Plc and TotalEnergies SE, lifting the Stoxx 600 index by 1%.
Trump also said he will announce tariffs on automobile imports in the coming days — and indicated nations will receive breaks from next week’s “reciprocal” tariffs, sowing further confusion about the plan for sweeping levies to kick in on April 2.
“Between now and the 2nd of April, it’s just a phase of wait and see,” said Michael Nizard, head of multi-asset at Edmond de Rothschild Asset Management. “If Trump is doing exactly what he’s saying in terms of reciprocal tariffs, it should be negative both for Wall Street and Main Street.”
Investors also remain unclear on how tariffs might impact inflation and economic growth, with most recent data hinting at softer economic momentum alongside still-elevated price pressures. On Tuesday, a summary of non-manufacturing business activity slipped to the lowest since 2020. US consumer confidence data due later in the day is expected to have eased slightly in March from the previous month.
Treasury yields pared an earlier rise, and Bloomberg’s dollar index slipped further. Gold prices rose 0.4%, holding just off record highs reached last week.
Swaps still price the Federal Reserve to cut rates twice this year, Atlanta Fed chief Raphael Bostic said Tuesday he sees just one 25 basis-point reduction, due to “very bumpy” inflation.
