Wall St futures slip as Trump-led rally loses steam
Summary
Companies
March 25 (Reuters) - U.S. stock index futures dipped on Tuesday, a day after Wall Street indexes surged to two-week highs on hints that the Trump administration might adopt a softer approach to tariffs.
U.S. President Donald Trump said on Monday that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
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The benchmark S&P 500 (.SPX), opens new tab and the tech-heavy Nasdaq (.IXIC), opens new tab closed at their highest level in over two weeks, propelled by a rally in megacap stocks including Nvidia (NVDA.O), opens new tab and Tesla (TSLA.O), opens new tab.
However, futures lost some ground on Tuesday as uncertainty over the scope of Trump's tariffs weighed on sentiment.
"Just because the bite isn't going to be as bad doesn't mean it's not going to hurt. This is a classic 'buy the rumor, sell the fact' we're seeing," said Daniela Hathorn, senior market analyst at Capital.com.
"There's still a lot of weakness in the equity market. Eventually, it's going to turn lower and buyers don't want to be caught out on the wrong side of the trade."
Tesla slipped 0.4% in premarket trade following a near 12% surge a day earlier.
The company's market share in Europe continued to shrink year-on-year in February, data showed, as sales of the all-electric car maker dropped for a second month despite rising EV registrations overall on the continent.
KB Home's (KBH.N), opens new tab shares fell 8% as the homebuilder cut its full-year 2025 revenue forecast.
At 5:55 a.m. ET, S&P 500 E-minis were down 4.75 points, or 0.08%, Nasdaq 100 E-minis were down 31.25 points, or 0.15%, Dow E-minis were down 42 points, or 0.1%.
Speeches from Federal Reserve Board Governor Adriana Kugler and Federal Reserve Bank of New York President John Williams are due later in the day.
A slew of economic indicators is set to be released this week, including consumer confidence for March, which is due at 10:00 a.m ET on Tuesday.
Forecasts point to a further deterioration in consumer sentiment, following an eight-month low in February.
The most eagerly anticipated release is Friday's personal consumption expenditures price index, the Fed's preferred inflation indicator, which consensus forecasts suggest will hold steady but remain above the Fed's 2% target.
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