U.S. stock index futures showed positive movement on Tuesday evening after U.S. Commerce Secretary Howard Lutnick suggested that President Donald Trump might be open to negotiations with Canada and Mexico, just one day after imposing significant tariffs on both countries.
In regular trading, major U.S. stock indices experienced significant declines over the previous two sessions following the announcement of 25% tariffs on Mexico and Canada, alongside a 20% levy on Chinese goods. Both Canada and China swiftly retaliated with their own measures, heightening concerns over global trade tensions.
S&P 500 Futures rose by 0.7%, reaching 5,832.25 points, while Nasdaq 100 Futures climbed 0.9%, reaching 20,572.25 points at 18:58 ET (23:58 GMT). Dow Jones Futures gained 0.6%, reaching 42,834.0 points.
Lutnick Hints at Possible Resolution with Mexico and Canada
In an interview with Fox Business, U.S. Commerce Secretary Lutnick stated that President Trump is willing to “meet in the middle” with Canada and Mexico concerning the newly imposed tariffs. This remark raised hopes for potential negotiations aimed at easing trade tensions that intensified following the enforcement of these tariffs on March 4, 2025.
The tariffs, which include a 25% duty on imports from Canada and Mexico, as well as a 20% increase on Chinese goods, have sparked concerns about potential negative effects on U.S. economic growth and consumer prices, especially given the ongoing inflationary pressures in the country.
In response, Canada has criticized the tariffs and announced immediate retaliatory actions, while Mexico has also signaled its intention to retaliate. China’s Ministry of Finance has stated it will impose 15% tariffs on various agricultural products and a 10% tariff on dairy products.
However, Lutnick’s comments introduced the possibility of a negotiated solution to the escalating trade disputes.
U.S. Stocks Decline as Banks and Automakers Lead Losses
In regular trading, U.S. stock indices continued their downward trend, with the S&P 500 falling 1.2% to 5,778.18 points, the Dow Jones Industrial Average dropping 1.6% to 42,521.66 points, and the NASDAQ Composite losing 0.4% to 18,285.65 points.
The financial sector bore the brunt of the losses, with Morgan Stanley (NYSE:MS) leading declines with a 5.7% drop, while JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs (NYSE:GS) each fell by nearly 4%.
The automotive sector also experienced significant losses, with Ford Motor Company (NYSE:F) slipping 2.9%, Stellantis NV (BIT:STLAM) declining 4.4%, and General Motors Company (NYSE:GM) dropping 4.6%.
The technology sector saw volatility, particularly among companies focused on artificial intelligence and semiconductors. NVIDIA (NASDAQ:NVDA) rebounded with a 1.6% gain after experiencing an over 8% fall the previous session, while other tech companies like Broadcom Inc (NASDAQ:AVGO) and Super Micro Computer Inc (NASDAQ:SMCI) also saw recoveries.
