U.S. stocks looked set to gain Tuesday, with investors still trying to make sense of President Donald Trump’s ever-changing trade policies.
Futures tracking the Dow Jones Industrial Average climbed 81 points, or 0.2%. S&P 500 futures ticked up 0.3%, and contracts tied to the Nasdaq 100 added 0.4%. All three blue-chip indexes finished higher the previous session for a two-day winning streak.
Trump has signaled in recent days that he’s willing to walk back some tariffs, somewhat soothing investors. The president said Monday he was considering a short-term tariff pause for auto makers, having introduced a similar exemption on certain electronics last week.
Signs that trade negotiations are going well have also put the market in a cheerier mood. National Economic Council Director Kevin Hassett said Monday the White House already had “more than 10 deals” on the table, adding that there had been “very good, amazing offers made” to Washington.
The recent developments have “created a positive backdrop for risk assets,” Deutsche Bank macro strategist Henry Allen said Tuesday in a research note. “There are clear indications that market stress is easing back again,” he added.
Falling bond yields were another welcome sign for the market Monday, but the retreat looked set to stall the following session. The yield on the 10-year U.S. Treasury note ticked up 1 basis point to 4.386%, and the yield on the 2-year note climbed 3 basis points to 3.883%.