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Strap yourself in for another wild ride. U.S. stock futures were pointing to gains early Tuesday but with the potential for sharp moves on more tariff news.
Dow Jones Industrial Average futures were up 700 points, or 1.8%. S&P 500 futures were climbing 1.3% and Nasdaq 100 futures were gaining 1%.
Indexes were marked by huge intraday swings on Monday amid a series of conflicting headlines on President Donald Trump’s tariff plans. By the end of the day, the S&P 500 had trimmed the worst of its losses and left investors feeling optimistic about the chances of a quick recovery.
“The odds of a tactical rebound have increased following the sharp correction, particularly if there are softer trade headlines, deadline extensions, or signs of negotiation,” wrote J.P. Morgan analyst Tony Lee in a research note.
The signs are mixed on the prospect for negotiation. China was set to face 34% tariffs Wednesday, which Trump said he would increase by an additional 50% if Beijing didn’t drop the retaliatory levies it imposed on the U.S. Trump also threatened to terminate “all talks with China concerning their requested meetings with us.”
However, elsewhere the White House said more than 50 countries have been in contact to begin negotiations.
Treasury Secretary Scott Bessent said Japan is likely to be prioritized in trade talks. Japan is a close ally of the U.S. and the largest foreign owner of U.S. government bonds.
The yield on the benchmark 10-year Treasury note was 4.15% early on Tuesday, ticking down from the previous day.
