US stock futures remained stable on Tuesday as investors found some comfort in signs that President Donald Trump could offer flexibility on upcoming tariffs.
Futures Market Activity
Futures linked to the Dow Jones Industrial Average (YM=F) remained unchanged. Meanwhile, futures tied to the S&P 500 (ES=F) and the Nasdaq Composite (NQ=F) saw modest increases of 0.1%.
Trump Signals Flexibility on Tariffs
Stocks have been rising recently following statements from President Trump, made on both Friday and Monday, suggesting he might be “flexible” or offer countries “breaks” on tariffs scheduled to take effect on April 2. This has given investors a sense of cautious optimism.
However, market gains have been tempered by previous remarks from Trump regarding new tariffs, which had sparked a sell-off earlier this month. His threats toward the EU and Canada had led the S&P 500 to briefly enter correction territory.
Retailers and Earnings Reports
The retail sector is facing heightened concerns as upcoming tariffs could impact profits. Dollar Tree (DLTR) is scheduled to report earnings on Wednesday, while Lululemon (LULU) will release its results on Thursday. Retailers have become particularly sensitive to tariff developments, with some companies lowering their forecasts and others warning of potential supply chain disruptions.
Key Economic Data This Week
Investors are also looking ahead to Friday’s release of the Personal Consumption Expenditures (PCE) Index for February, a key economic indicator. The data will offer insights into the Federal Reserve’s stance on interest rates, with many speculating whether the central bank will proceed with two additional rate cuts this year.
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