After ending Monday’s volatile session mostly lower, stocks are likely to see further downside in early trading on Tuesday. The major index futures are currently pointing to a notably lower open for the markets, with the S&P 500 futures down by 0.9 percent.
Ongoing trade uncertainty may continue to weigh on the markets following recent strength, which saw the S&P 500 close higher for nine straight sessions before yesterday’s pullback.
While Treasury Secretary Scott Bessent told CNBC on Monday the U.S. is “very close to some deals,” the lack of any concrete developments from trade talks has kept investors on edge.
President Donald Trump is scheduled to meet with Canadian Prime Minister Mark Carney for the first time later today amid a tense relationship between the historic allies due to disputes over trade and Canada’s sovereignty.
In trade-related economic news, the Commerce Department released a report this morning showing the U.S. trade deficit spiked by much more than expected in the month of March.
The report said the trade deficit soared to a record high $140.5 billion in March from a revised $123.2 billion in February.
Economists had expected the trade deficit to widen to $129.0 billion from the $122.7 billion originally reported for the previous month.
The much bigger than expected trade deficit came as the value of imports surged by 4.4 percent to $419.0 billion, while the value of exports crept up by 0.2 percent to $278.5 billion.
Stocks saw considerable volatility over the course of the trading session on Monday before eventually ending the day mostly lower. The major averages recovered from an early slump but once again came under pressure in the latter part of the session.
The major averages ended the day off their early lows but still in negative territory. The Nasdaq slid 133.49 points or 0.7 percent to 17,844.24, the S&P 500 fell 36.29 points or 0.6 percent at 5,650.38 and the Dow dipped 98.60 points or 0.2 percent to 41,218.83.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday, with markets in Japan and South Korea closed for holidays. China’s Shanghai Composite Index jumped by 1.1 percent, while India’s Nifty 50 Index fell by 0.3 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 0.7 percent, the French CAC 40 Index is down by 0.3 percent and the U.K.’s FTSE 100 Index is down 0.1 percent.
In commodities trading, crude oil futures are jumping $1.54 to $58.67 a barrel after tumbling $1.16 to $57.13 a barrel on Monday. Meanwhile, after soaring $79 to $3,322.30 an ounce in the previous session, gold futures are surging $62.30 to $3,384.60 an ounce.
On the currency front, the U.S. dollar is trading at 142.71 yen compared to the 143.37 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1339 compared to yesterday’s $1.1315.
Business News
U.S. Stocks May Extend Pullback Amid Ongoing Trade Uncertainty
2025-05-06 12:51:46
