Bargain Hunting, Upbeat Earnings May Lead To Strength On Wall Street

The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to regain ground following the sell-off seen in the previous session.

Traders may look to pick up stocks at reduced levels following the steep drop seen on Monday, which came amid lingering trade war concerns and President Donald Trump’s continued attacks on Federal Reserve Chair Jerome Powell.

The markets may also benefit from a positive reaction to some of the latest earnings news, with shares of 3M (MMM) surging by 5.3 percent in pre-market trading after the manufacturing conglomerate reported better than expected first quarter results.

Aircraft engine supplier GE Aerospace (GE) is also jumping by 4.5 percent in pre-market trading after reporting first quarter earnings that exceeded analyst estimates.

Defense contractor Lockheed Martin (LMT) may also see initial strength after reporting first quarter results that exceeded expectations on both the top and bottom lines.

On the other hand, shares of Verizon (VZ) are slumping by 5.3 percent in pre-market trading after the telecom giant reported better than expected first quarter earnings but lost more postpaid phone subscribers than expected.

Electric vehicle maker Tesla (TSLA) is among the companies due to report their quarterly results after the close of today’s trading.

After turning in a lackluster performance to close out the previous week, stocks showed a substantial move to the downside during trading on Monday. The major averages all moved sharply lower, with the Dow adding to the steep loss posted last Thursday.

The major averages climbed off their worst levels going into the end of the day but remained firmly negative. The Nasdaq plunged 415.55 points or 2.6 percent to 15,870.90, the Dow tumbled 971.82 points or 2.5 percent to 38,170.41 and the S&P 500 slumped 124.50 points or 2.4 percent to 5,158.20.

The sell-off on Wall Street came amid lingering concerns about a global trade war as traders await signs of progress from Trump’s trade talks.

Potentially adding to the worries, China has threatened to retaliate against any countries that reach a trade deal with the U.S. at the expense of China’s interests.

A spokesman for China’s Ministry of Commerce was asked to respond to reports the Trump administration is preparing to put pressure on other countries to restrict trade with China in exchange for U.S. tariff exemptions.

“If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner,” the spokesman responded, according to a Google translation. “China is determined and capable of safeguarding its own rights and interests.”

Trump’s continued attacks on Powell added to the negative sentiment, with the president calling him “Mr. Too Late” and “a major loser” in a post on Truth Social.

In the same post, Trump also claimed there will be “almost no inflation” but warned “there can be a SLOWING of the economy” unless Powell lowers interest rates.

Trump also called on the Fed to lower rates in a separate post last week, declaring, “Powell’s termination cannot come fast enough!”

Networking stocks showed a substantial move to the downside on the day, resulting in a 3.2 percent plunge by the NYSE Arca Networking Index.

Significant weakness was also visible among natural gas stocks amid a steep drop by the price of the commodity, dragging the NYSE Arca Natural Gas Index down by 3.0 percent.

Airline, oil service and software stocks also saw considerable weakness, moving notably lower along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are climbing $0.82 to $63.90 a barrel after tumbling $1.60 to $63.08 a barrel on Monday. Meanwhile, after soaring $96.90 to $3,425.30 an ounce in the previous session, gold futures are jumping $38.90 to $3,464.20 an ounce.

On the currency front, the U.S. dollar is trading at 140.44 yen compared to the 140.86 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1474 compared to yesterday’s $1.1515.

Asia

Asian stocks ended mixed on Tuesday after tariff-related worries and fears over the independence of the U.S. Federal Reserve sparked a sell-off in U.S. equities overnight.

In a post on Truth Social, U.S. President Donald Trump claimed without evidence that “pre-emptive cuts” were being called for “by many” now that the economy was facing what he described as “virtually No Inflation.”

Mainland Chinese and Hong Kong markets outperformed despite escalating U.S.-China trade tensions.

The dollar remained under pressure after hitting a three-year low Monday. Gold hovered near record levels while oil prices rebounded on short covering.

China’s Shanghai Composite Index rose 0.3 percent to 3,299.76 and Hong Kong’s Hang Seng Index climbed 0.8 percent to 21,562.32 amid bets policymakers will unveil more stimulus in the coming months.

Japanese markets fell as the yen strengthened against other major currencies amid a rising consensus that the Bank of Japan will continue hiking interest rates in 2025.

The Nikkei 225 Index dipped 0.2 percent to 34,220.60, while the broader Topix Index settled 0.1 percent higher at 2,532.12.

The yen hit a fresh seven-month high against the dollar following Trump’s incessant attacks on Federal Reserve Chair Jerome Powell.

Seoul stocks ended little changed, with the Kospi finishing marginally lower at 2,486.64, snapping a three-day winning streak. Samsung Electronics shed 0.7 percent and Hyundai Motor dropped 0.9 percent on tariff concerns.

Australian markets ended marginally lower after recovering from the day’s lows, led by banks, with Commonwealth Bank of Australia surging 4.2 percent.

Gold miner Evolution Mining jumped 4.9 percent and Resolute Mining soared 8.6 percent as bullion extended a blistering rally to rise above US$3,500 an ounce for the first time.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index plunged 2.3 percent to 11,836.69 as traders returned from a long weekend.

Europe

European stocks have moved lower on Tuesday as U.S. President Donald Trump’s remarks on Federal Reserve Chair Jerome Powell reignited concerns about Fed independence and political interference. Trump’s message about non-tariff barriers also added to concerns over the trade war.

The pan-European STOXX 600 Index is down by 0.5 percent as traders return to their desks after a long holiday weekend.

The German DAX Index is also down by 0.5 percent and the French CAC 40 Index is down by 0.4 percent, although the U.K.’s FTSE 100 Index has bucked the downtrend and risen by 0.2 percent.

Roche Holding AG has moved to the downside after the Swiss pharmaceutical giant unveiled plans to invest USD 50 billion in pharmaceuticals and diagnostics in the United States over the next five years.

Danish drug maker Novo Nordisk has also slumped after U.S. rival Eli Lilly released promising trial results for its experimental obesity pill, orforglipron, in a trial of diabetes patients.

Sales and marketing services provider DCC has also tumbled percent following the announcement of its healthcare division’s sale to HealthCo Investment Limited for £1,050 million.

Meanwhile, Biotage AB shares have soared after KKR made a cash offer for the Swedish biotechnology firm, valuing it at around 11.6 billion Swedish crowns ($1.22 billion).

Germany’s ProSiebenSat.1 has also rallied after extending Bert Habets’ contract as Group CEO for another three years.

J Sainsbury shares have also jumped in London. The merchandise retail company has confirmed the launch of a share buyback program worth up to 200 million pounds.

U.S. Economic News

Federal Reserve Vice Chair Philip Jefferson is scheduled to speak on “Economic Mobility and the Dual Mandate” before the Economic Mobility Summit sponsored by the Federal Reserve Bank of Philadelphia at 9 am ET.

At 9:30 am ET, Philadelphia Federal Reserve President Patrick Harker is due to participate in a fireside chat on how economic mobility impacts regional economies and can promote local growth before the Economic Mobility Summit.

The Treasury Department is scheduled to announce the results of this month’s auction of $69 billion worth of two-year notes at 1 pm ET.

At 1:40 pm ET, Minneapolis Federal Reserve President Neel Kashkari is due participate in a moderated question-and-answer session before the U.S. Chamber of Commerce Global Summit.

Richmond Federal Reserve President Thomas Barkin is scheduled to participate in a fireside chat on “Macro and Micro Economic Forces Shaping our Future” before the RVA Big Dipper Innovation Summit at 2:30 pm ET.

At 6 pm ET, Federal Reserve Board Governor Adriana Kugler is due to speak on “Transmission of Monetary Policy” before the University of Minnesota Heller-Hurwicz Economics Institute Spring 2025 Roundtable.