Markets, Stocks

U.S. Stock Futures Up, Investors Seek News on Tariff Talks

April 8, 2025 OnEquity

U.S. stock index futures surged on Tuesday, rebounding from the previous session’s volatility as uncertainty surrounding President Donald Trump’s tariff agenda continued to grip markets.

As of 05:50 ET (09:50 GMT), Dow Jones Futures rose 735 points (1.9%), S&P 500 Futures gained 75 points (1.5%), and Nasdaq 100 Futures advanced 205 points (1.2%).

Wall Street Recovers from Wild Swings

On Monday, Wall Street experienced dramatic fluctuations, with major indices initially plunging before recovering on a now-debunked report suggesting the Trump administration might reconsider its tariff plans.

  • The Dow Jones Industrial Average and S&P 500 ended slightly lower.
  • The Nasdaq Composite managed to eke out a 0.1% gain.
  • The VIX volatility index, known as Wall Street’s “fear gauge,” spiked to its highest level since the March 2020 COVID-19 sell-off.
  • Trading volumes hit an 18-year high, surpassing 29 billion shares.

Despite Tuesday’s rally, the S&P 500 has lost over 10% in the past three sessions.

Will Tariff Negotiations Ease Market Tensions?

On Monday, President Trump reaffirmed his commitment to imposing reciprocal tariffs, escalating trade tensions further by threatening an additional 50% tariff on Chinese goods unless China withdraws its recent 34% tariff hike on U.S. imports by April 8, 2025.

However, Treasury Secretary Scott Bessent hinted at possible negotiations, revealing that nearly 70 countries, including Japan, have reached out to the White House to discuss potential trade deals.

Additionally, The Washington Post reported that Tesla CEO Elon Musk personally lobbied Trump over the weekend to reconsider tariff measures.

Investors will be closely watching U.S. Trade Representative Jamieson Greer’s testimony before the Senate Finance Committee later today for further clarity on trade policy.

Markets Await Key Economic Data

While Tuesday’s economic calendar is relatively light, the spotlight is on Thursday’s Consumer Price Index (CPI) report, which will provide insights into inflation trends.

Chicago Fed President Austan Goolsbee noted that businesses are on edge about tariffs but emphasized the need for “hard data” before considering policy adjustments. Meanwhile, UBS analysts suggested that a further 5–10% decline in the S&P 500 could push the Federal Reserve toward policy action.

Corporate Highlights: Broadcom, Marvell, and UnitedHealth in Focus

  • Broadcom (AVGO): Surged in premarket trading after announcing a $10 billion share buyback program set to run through year-end.
  • Marvell Technology (MRVL): Gained after Infineon (IFNNY) agreed to purchase its automotive ethernet business for $2.5 billion.
  • UnitedHealth (UNH): Jumped following the announcement of a 5.06% increase in 2026 Medicare Advantage payment rates for private insurers.

Oil Prices Steady After Recent Declines

Crude oil prices inched higher on Tuesday after a prolonged sell-off triggered by fears that Trump’s tariffs could spark a global recession and dampen energy demand.

As of 05:50 ET:

  • Brent crude edged up 0.1% to $64.35 per barrel.
  • West Texas Intermediate (WTI) crude rose 0.2% to $60.85 per barrel.

Despite the modest rebound, both benchmarks remain down over 14% since Trump announced tariffs on all imports on April 2

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