Dow Jones Futures Rise After Market Whipsaws; Trump Pushes Tariffs Before Congress

U.S. stock futures rose overnight as Commerce Secretary Howard Lutnick suggested that tariffs on Mexico and Canada could be rolled back quickly. This came after a volatile trading session that saw the major indices swing sharply before closing lower. Meanwhile, President Donald Trump addressed Congress, defending his tariff strategy and outlining his economic priorities.

Stock Market Recap & Futures Movement

• Dow Jones futures rose 0.5%.
• S&P 500 futures gained 0.7%.
• Nasdaq 100 futures climbed 0.7%, with Nvidia (NVDA) and Super Micro Computer (SMCI) bouncing after a rough session.
• 10-year Treasury yield increased to 4.26%.
• Crude oil futures dropped 1%.

Despite futures gains, analysts caution against assuming a smooth trading session ahead, as market sentiment remains fragile amid policy uncertainty.

Trump’s Speech to Congress: Tariffs Take Center Stage

President Donald Trump, speaking before Congress, doubled down on his America First economic policy, emphasizing tariffs:

“Whatever they tariff us, we tariff them. If they do non-monetary tariffs to keep us out, we do the same. We will take in trillions and create jobs like never before.”

Key points from Trump’s address:

• 25% tariffs on Canada and Mexico officially went into effect Tuesday.
• 10% additional tariffs on Chinese goods were also imposed.
• Tariffs will cause 'some disturbance' but will benefit the U.S. long-term, according to Trump.
• No CHIPS Act subsidies for chipmakers, despite GOP Congress pushing for more tech sector support.

Will Tariffs Be Rolled Back?

Despite Commerce Secretary Lutnick’s statement that Trump may roll back tariffs on Mexico and Canada by Wednesday, Trump did not confirm this during his speech. Markets remain uncertain about potential policy reversals.

Earnings Reports & Market Reactions

Key earnings reports after market close:

• CrowdStrike (CRWD): Beat earnings estimates but issued mixed guidance → Shares sold off after hours.
• Credo Tech Group (CRDO): Strong earnings, but stock reversed lower.
• Box (BOX): In-line earnings, weak guidance → Stock tumbled in extended trade.
• JD.com (JD): Shares rose 1.8% ahead of Wednesday’s earnings report.

Stock Market Volatility & Key Technical Levels

Tuesday’s session was a rollercoaster, with major indices experiencing wild swings:

• Dow Jones closed down 1.55%.
• S&P 500 lost 1.2%, hovering near its 200-day moving average.
• Nasdaq Composite swung from negative to positive before closing down 0.35%, failing to reclaim its 200-day moving average.
• Russell 2000 (small-cap stocks) dropped 1.1%, hitting a seven-month low.

Defensive sectors like medical stocks, fast food, and insurance have shown relative strength and remain in buy zones for investors looking for safer opportunities.

Market Outlook: Uncertainty Remains

While futures are pointing higher, volatility remains elevated. Key factors to watch include:

• Potential tariff rollbacks on Mexico and Canada.
• Trump’s policy stance on trade and economic growth.
• Upcoming earnings reports from key companies like JD.com.
• Technical resistance levels on major indices, especially the 200-day moving average.

For now, investors should stay defensive and remain prepared for further swings in market sentiment. Stay tuned to Uplift Markets for the latest market insights and strategy updates.