US stock futures cool after Wall St rebounds on Trump tariff relief

Investing.com-- U.S. stock index futures fell slightly on Monday evening, cooling off after Wall Street rose sharply on reports that U.S. President Donald Trump’s April 2 tariffs will be less severe than feared. 

Trump still kept up his tariff threats, while caution before more economic data this week limited Wall Street’s advance after U.S. stock benchmarks recovered from recent six-month lows. 

Trump also imposed a 25% tariff on countries that buy oil from Venezuela, pushing up crude prices and putting markets back on edge. 

Tesla Inc (NASDAQ:TSLA) was a standout performer on Monday, rebounding nearly 12% after slumping to a near five-month low earlier this month. The stock rose about 1% in aftermarket trade. 

Market darling NVIDIA Corporation (NASDAQ:NVDA)- which was also battered in recent weeks- fell 0.4% in evening trade after rising 3% during the session. 

S&P 500 Futures fell 0.1% to 5,810.25 points, while Nasdaq 100 Futures fell 0.1% to 20,349.75 points by 19:22 ET (23:22 GMT). Dow Jones Futures fell 0.1% to 42,867.0 points. 

Stronger-than-expected purchasing managers index data for March also aided sentiment. 

Wall St rebounds on easing tariff fears 

Wall Street’s Monday gains were driven chiefly by hopes that Trump will be more flexible with his tariff agenda. Bloomberg and Wall Street Journal reports over the weekend showed that only some of Trump’s sectoral tariffs will be imposed on his April 2 “liberation day,” and that his reciprocal tariffs will also be more concentrated than previously expected. 

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Trump said he will impose tariffs on automobiles, pharmaceuticals, and aluminum in the “very near future,” and said duties on lumber and semiconductors will follow down the road. 

Weekend reports showed Trump will likely target a group of 15 countries with perceived trade imbalances with the U.S. for his reciprocal tariffs, helping ease some concerns over broad-based tariffs. 

But markets are still waiting to see just how Trump’s tariff agenda will play out, and how it will impact the global economy. This notion battered Wall Street over the past month, briefly putting indexes at six-month lows and in correction territory. 

The S&P 500 rose 1.8% to 5,767.57 points on Monday, while the NASDAQ Composite soared 2.3% to 18,188.59 points. The Dow Jones Industrial Average rose 1.4% to 42,583.32 points. 

PCE data, other economic cues in focus 

Focus this week is squarely on several major economic readings for more insight into the early days of the Trump presidency, as well as the potential path of interest rates.

PCE price index data- which is the Federal Reserve’s preferred inflation gauge- is due on Friday. The print, particularly core PCE data, is widely expected to have remained above the Fed’s 2% target in February.

Before that, a revised reading on fourth-quarter gross domestic product is due on Thursday, while home prices and sales data is due on Wednesday. 

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