Markets Eye Possible Trade Negotiations Following Sharp Swings and Fresh Tariff Threats from Trump
U.S. stock index futures jumped in late trading Monday after a volatile day on Wall Street, as investors weighed the possibility of trade negotiations despite President Donald Trump’s renewed tariff threats.
As of 20:02 ET (00:02 GMT), S&P 500 Futures rose 1.1% to 5,151.50, Nasdaq 100 Futures climbed 1.2% to 17,763.0, and Dow Jones Futures gained 1.3% to 38,650.0.
Wall Street experienced dramatic intraday volatility on Monday amid escalating global trade tensions. All three major indexes opened sharply lower, continuing last week’s downward trend.
Mid-morning, a viral post on social media platform X suggested that President Trump might implement a 90-day pause on tariffs for all countries except China. The rumor sparked a swift rally, with stocks reversing earlier losses. However, the White House swiftly denied the claims, sending markets back into the red.
Later in the session, President Trump doubled down on his aggressive stance, warning of an additional 50% tariff on Chinese goods if Beijing does not roll back its newly announced 34% tariffs on U.S. imports by April 8, 2025. The announcement intensified investor jitters, adding to the day’s turbulence.
By the closing bell:
Despite President Trump’s hardline stance, Treasury Secretary Scott Bessent signaled that the administration is open to negotiations aimed at reducing trade barriers. According to Reuters, over 50 countries have approached the U.S. to discuss tariff reprieves.
This glimmer of diplomatic hope helped fuel after-hours optimism, pushing futures higher as traders bet on potential concessions that could ease global economic fears.
Technology stocks showed resilience amid the chaos, with some high-profile names rebounding:
On the flip side, major tech players faced selling pressure:
Outlook: With volatility continuing and the global trade outlook uncertain, investors will closely monitor any developments from the White House or foreign governments regarding tariff negotiations. Economic data later this week, along with potential updates on reciprocal tariffs, could drive the next major move in the markets.
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