US Stocks Expected to Open Lower Following Two-Day Gain

U.S. stock futures dipped on Tuesday after experiencing two consecutive days of gains on Friday and Monday.

The premarket trading saw major benchmark indices showing declines, indicating that investors may be taking profits after the previous upward movements.

On Monday, President Donald Trump announced that automobile tariffs are expected to be announced soon, although not all of them will be put into effect by April 2. During a briefing at the White House, he hinted that certain countries might be exempt from these tariffs but did not provide further details, according to Reuters.

In addition to this, Trump proposed a 25% tariff on nations acquiring oil or gas from Venezuela, which could have implications for global oil prices. A White House official mentioned that the specific timeline for tariffs targeting various industries, such as automobiles, pharmaceuticals, and semiconductor chips, is still uncertain.

The yield on the 10-year Treasury stood at 4.35%, with the two-year yield at 4.05%. The CME Group's FedWatch tool indicates a significant 89.2% probability that the Federal Reserve will opt to maintain the current interest rates during its meeting in May.

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 the Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 indices respectively, saw declines in the premarket. SPY fell by 0.11% to $573.44, while QQQ dropped 0.24% to $489.50, based on data from Benzinga Pro.

Recent Market Trends:

On Monday, sectors such as consumer discretionary, communication services, and industrials led a broad market rally, propelling U.S. stocks higher.

Prominent companies like Tesla Inc. (TSLA), Meta Platforms Inc. (META), and Nvidia Corp. (NVDA) experienced considerable gains, with Tesla rising roughly 12%. This boost in share prices was driven by a more tempered approach by Trump on tariffs as the April 2, 2025 deadline approaches, along with favorable data from the service sector.

Specifically, the S&P Global Services PMI increased to 54.3, while the Chicago Fed National Activity Index rose to 0.18. However, the S&P Global U.S. Manufacturing PMI declined to 49.8, and utility stocks fell slightly against 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

Expert Insights:

As the market recovers after Trump's softer stance on tariffs, senior economist Jeremy Siegel explains that a clearer tariff plan could lead to a significant relief rally, especially if it avoids broad retaliation.

Market participants are highly focused on the details surrounding international trade, as the date April 2 is approaching, which could either soothe or intensify existing trade war concerns.

Siegel highlighted that the recent decline of 10% in equities from December's high points reflects investor worries about unpredictable tariff announcements affecting global market stability.

Touching on the Federal Reserve's recent remarks, he added, "Fed Chair Powell's flexible approach downplayed long-term inflation concerns linked to tariffs while observing muted long-term expectations in financial markets. This combination of comments has been favorable to equities, yet jitters remain regarding tariffs."

According to Kathy Jones, the chief fixed income strategist at the Schwab Center for Financial Research, current market activity is somewhat stagnant due to policy uncertainties.

"Certain policies, such as tariffs and immigration limits, may hinder growth, while tax cuts and deregulation might support it. Similarly, some initiatives could increase inflation pressures while slower growth may counteract them. Therefore, the market remains trapped in this range of uncertainty concerning Fed actions," Jones noted.

Upcoming Economic Indicators:

Here are key economic releases that investors will watch on Tuesday:

• The S&P Case-Shiller home price index for 20 cities is set for release at 9 a.m. ET.

• Consumer confidence alongside new home sales data will be reported at 10 a.m. ET.

Stocks to Watch:

• Core & Main Inc. (CNM) gained 2.30% in premarket trading on Monday ahead of its earnings report, with analysts forecasting quarterly earnings at 36 cents per share on a revenue of $1.67 billion.

• GameStop Corp. (GME) was up by 0.27% as market expectations place its earnings report at 8 cents per share on revenue of $1.48 billion after the market closes.

• Worthington Industries Inc. (WOR) fell by 0.15% ahead of its earnings release later in the day, with analysts predicting earnings of 71 cents per share on revenue of $285.54 million.

• KB Home (KBH) experienced a notable drop of 9.37% after reporting weaker-than-expected first-quarter results on Monday, indicating that it anticipates housing revenue for the full year of 2025 to fall between $6.6 billion and $7 billion.

• Trump Media & Technology Group Corp. (DJT) surged by 9.80% upon announcing a partnership with cryptocurrency exchange Crypto.com aimed at launching a series of exchange-traded funds.

• WANG & LEE GROUP Inc. (WLGS) sank by 7.31% after declaring a $12 million registered direct offering.

• 23andMe Holding Co. (ME) fell by 5.77% after initiating voluntary Chapter 11 bankruptcy to pursue a strategic sale while securing $35 million in DIP financing.

• Prairie Operating Co. (PROP) plummeted by 19.45% after pricing a $38.5 million public offering of common stock at $4.50 per share, anticipating net proceeds of around $35.4 million. Underwriters have a 30-day option to acquire an additional $5.8 million in shares.

• Atomera Inc. (ATOM) tumbled by 15.94% following the resignation of VP Shawn Thomas, effective March 28, 2025.

Commodities and Global Markets:

Crude oil futures increased by 0.52%, reaching approximately $69.48 per barrel during early New York trading.

Gold Spot prices also rose by 0.26%, nearing $3,019.99 per ounce, with its previous record high hitting $3,057.51 per ounce.

Asian markets experienced mixed results on Tuesday, with declines seen in China’s CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi index. Conversely, India's S&P BSE Sensex, Japan's Nikkei 225, and Australia's ASX 200 index posted gains. European markets started off mostly higher during early trading.

stocks, market, trade