Last Updated: 4:05 PM EST
Stock indices finished today’s trading session in the green after President Donald Trump’s new tariffs seem like they will be more targeted rather than wide-ranging like he had previously threatened. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 2.16%, 1.76%, and 1.42%, respectively.
In addition, U.S. business activity saw some improvement in March, according to S&P Global (SPGI), but concerns remain due to potential tariffs and deep cuts to government spending. While the overall economic output picked up, companies saw higher costs for supplies, especially in the manufacturing and service sectors. Many businesses also held back on hiring, which suggests that they are cautious about the future.
The Composite PMI Output Index, which reflects activity in both manufacturing and services, rose to 53.5 from 51.6 in February. However, that growth was largely due to the service sector, which was helped by warmer weather. Manufacturing, on the other hand, fell back into contraction territory. Despite the positive movement in the PMI, harder economic data like retail sales and job growth paint a weaker picture.
Indeed, the broader economic outlook remains cloudy after the Federal Reserve recently lowered its growth forecast for the year from 2.1% to 1.7% while also increasing its inflation forecast. It also kept interest rates steady thanks to the uncertainty around U.S. economic policies. And President Trump’s love of tariffs and steep federal budget cuts are not helping either, as businesses point to them as key reasons for their lower confidence.
Furthermore, it is worth noting that prices for business inputs surged to their highest level since 2023 as a result of tariffs and labor costs, which have led many manufacturers to pass on those increases to consumers. Service providers, however, have struggled to raise their prices due to intense competition and weaker demand.
First Published: 5:02 AM EST
U.S. stock futures opened higher on Monday morning, signaling a potential continuation of last week’s market gains. This positive sentiment is fueled by renewed optimism about trade negotiations. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 1.26%, 0.77%, and 1.01%, respectively, at 5:00 a.m. EST, March 24.
Last week, the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) climbed 1.2%, 0.51%, and 0.17%, respectively. These gains marked a rebound for the S&P 500 closing higher on Friday, ending a potential streak of four consecutive weekly losses.
Investor attention remains focused on the April 2 deadline for President Trump’s proposed reciprocal tariffs. These tariffs, aimed at countries imposing duties on US imports, have created uncertainty.
However, recent developments have injected a dose of optimism. President Trump hinted at “flexibility” in his tariff plans on Friday, and reports suggest that tariffs might be narrower in scope than initially feared, excluding some industry-specific duties.
Looking ahead, investors are awaiting the release of the flash U.S. Purchasing Managers’ Index (PMI) report today, which will provide insights into the health of the manufacturing and services sectors.
Also, the Consumer Confidence data on Tuesday and the GDP estimate on Thursday will shed light on the state of the U.S. economy. Finally, the Personal Consumption Expenditures (PCE) report on Friday will offer insights into consumer spending trends and inflation.
On the earnings front, KB Home (KBH), Oklo (OKLO), GameStop (GME), Chewy (CHWY), Dollar Tree (DLTR), and Lululemon (LULU) will report earnings this week.
At the time of writing, the U.S. 10-year treasury yield was up, floating near 4.279%. Simultaneously, WTI crude oil futures are trending lower, hovering near $68.13 per barrel as of the last check.
Elsewhere, European indices opened higher today reflecting optimism that the upcoming U.S. tariffs might be less severe and more focused than originally feared.
Asia-Pacific Markets Traded Mixed on Monday
Asia-Pacific indices were mixed today as global trade concerns rise ahead of the April 2 deadline for reciprocal tariffs.
At the same time, Hong Kong’s Hang Seng Index was up 0.91%. Further, China’s Shanghai Composite and Shenzhen Component indices gained 0.15% and 0.07%, respectively. However, Japan’s Nikkei and Topix indices were down 0.18% and 0.47%, respectively.
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