Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded lower ahead of Tuesday’s open, following a rally in the stock market on Monday.
Notable stock movements included Nvidia (NVDA), Palantir Technologies (PLTR), and Tesla (TSLA). Despite a strong recovery in the Dow Jones Industrial Average, which rose over 400 points, individual stocks experienced notable losses.
Nvidia trimmed its losses to 1.2%, recovering from a 5.5% intraday drop. The stock hit its lowest point since September 6 and lost an additional 1% in extended trading.
Palantir saw a 1.7% drop, extending last week’s heavy losses and falling further below its 50-day moving average. The stock also lost 1.2% in after-hours trading.
Tesla dropped 1.7% for the second consecutive session, now 47% off its record high of 488.54, set on December 18. The stock continued to slide by 1.7% in after-hours trading.
Imminent Tariffs from Trump to Impact Markets
President Donald Trump is set to announce his “reciprocal” tariffs on Wednesday. These tariffs, dubbed “Liberation Day” by Trump, are aimed at counteracting trade barriers and duties imposed by other countries on U.S. goods. White House officials have indicated that the final decision on the tariffs is still pending.
Reports from the Wall Street Journal suggest that Trump may implement higher tariffs targeting a broader group of countries. In addition to these tariffs, the 25% auto tariffs announced on March 26 will take effect on Thursday. Furthermore, a one-month suspension of 25% tariffs on many Canadian and Mexican goods is scheduled to end in early April.
Along with the looming tariff announcements, investors will be looking closely at Friday’s March jobs report. Economists expect the unemployment rate to rise slightly to 4.2%, with an addition of 125,000 payroll positions, including 120,000 in the private sector. If gains fall below 100,000, it could prompt the Federal Reserve to take action. Economic data from the Institute for Supply Management’s surveys on manufacturing and services, due on Tuesday and Thursday, will also provide insight into March’s economic conditions.
Dow Jones Futures: Market Trends and Oil Prices
On Monday, the Dow Jones Industrial Average surged by 1%, or 417 points, while the S&P 500 rose nearly 0.6%, and the Nasdaq experienced a slight decline.
Ahead of Tuesday’s market open, Dow Jones futures fell by 0.3%, S&P 500 futures decreased by 0.5%, and Nasdaq 100 futures dropped by 0.6%. It is important to note that overnight movements in futures do not always translate into actual trading during the regular market session.
The 10-year U.S. Treasury yield rose slightly to 4.24%, while oil prices increased. West Texas Intermediate futures settled around $71.30 per barrel.
Breakout Stocks to Watch: Ollie’s Bargain Outlet
On Monday, Ollie’s Bargain Outlet (OLLI) stood out as a breakout stock, surpassing a 115.42 buy point in a double bottom formation, according to IBD MarketSurge. The stock gained 2.8% with slightly above-average volume.
IBD Leaderboard stock Life Time Group (LTH) is attempting to halt its recent decline at the 50-day moving average, a key level to watch. The stock also presented a short cup with handle pattern offering a 32.85 buy point, with its relative strength line reaching a new high last week.
However, with the stock market still in correction mode, investors are advised to avoid making new purchases. Instead, they should add these stocks to a watchlist and wait for the overall market environment to improve before making decisions.
What to Do Now After Monday’s Market Rally
Following Monday’s strong market performance, it is crucial for investors to stay informed about the latest stock market conditions. IBD’s The Big Picture column provides updated exposure levels, helping investors make informed decisions.
IBD MarketSurge’s “Breaking Out Today” list is an essential tool for identifying stocks breaking out past buy points. Additionally, the MarketSurge “Near Pivot” list tracks stocks nearing buy points in bases, offering further opportunities for investors looking to make moves once the market stabilizes.
Related topics:
