Stock futures rose on Monday morning as investors look to see if recent gains can continue into a new trading week.
Stock Futures Show Positive Movement
Futures tied to the Dow Jones Industrial Average gained 233 points, or 0.55%. The S&P 500 futures climbed 0.67%, and Nasdaq 100 futures were up by 0.81%.
This comes after a much-needed winning week for stocks. The S&P 500 ended the week higher on Friday, marking the end of a three-week losing streak.
Investors Concerned About Potential Economic Slowdown
Despite the recent gains, investors remain cautious about potential risks to the U.S. economy. The looming start of President Trump’s reciprocal tariffs on April 2 has raised concerns. These tariffs are set to target any country that imposes duties on U.S. imports.
Bank of America’s trading desk noted that while equities seem poised for a rebound, investors are still wary of economic growth slowing. They explained in a Sunday note, “Positioning hurdles have been cleared, sentiment has reset, and growth concerns are well flagged.”
Trump Softens Stance on Tariffs
On Friday, President Trump gave investors a bit of reassurance by suggesting that there could be “flexibility” with his tariff plan. While he didn’t promise tariff exemptions, his comments seemed to ease some of the fears surrounding the tariffs.
In addition, the Wall Street Journal reported on Sunday that the tariffs will likely be narrower in scope, potentially excluding some industry-specific duties, according to an administration official.
Investor Sentiment and Economic Data
Investor concerns about the U.S. economy have been growing, particularly due to weaker consumer sentiment data. However, Federal Reserve Chair Jerome Powell offered some optimism last week, stating that any negative impact from the tariffs is expected to be brief.
This week, investors will focus on consumer confidence data set to be released on Tuesday, followed by weekly jobless claims figures on Thursday.
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