Stocks futures are sharply higher Monday as investors digest reports that the Trump administration could reduce the scope of tariffs that are scheduled to be imposed next week.
Futures tied to the S&P 500 and tech-heavy Nasdaq were up 1.2% and 1.5%, respectively, about an hour before the opening bell, while those linked to the Dow Jones Industrial Average added 0.9%. The market is looking to extend a nascent recovery from a selloff spurred by concerns about the potential impact of tariffs and uncertainty about the outlook for the economy. Each of the major indexes posted weekly gains last week, with the S&P 500 and Nasdaq Composite doing so for the first time in five weeks.
Investor sentiment got a boost this morning from a Wall Street Journal report that said the White House could exclude certain sectors from wide-ranging reciprocal tariffs that are scheduled to go into effect on April 2. Bloomberg News reported that some countries may also be left out of next week’s announcement.
Trump’s plans for tariffs have raised concerns that inflation could reaccelerate and economic growth could stall. Last week, the Federal Reserve said that, while growth remains solid, the economic outlook has become more uncertain. The Fed decided to hold off on adjusting interest rates as it seeks more clarity on the impact of Trump’s policies.
Shares of the world’s largest technology companies were up across the board in premarket trading Monday, led by a 4% gain for EV maker Tesla (TSLA). Nvidia (NVDA), Amazon (AMZN) and Meta Platforms (META) were each up about 2%, while Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG) and Broadcom (AVGO) each gained about 1%.
Among other noteworthy tech movers, data analytics software company Palantir (PLTR) and marketing platform AppLovin (APP), were up 3% and 4%, respectively. Shares of Strategy (MSTR), formerly known as MicroStrategy and the world’s largest corporate holder of bitcoin, gained rose 5% as the digital currency moved higher.
Bitcoin was trading at $87,300, up from around $84,000 late Friday.
Gold futures were up 0.4% at $3,035 an ounce, trading near its record high, while West Texas Intermediate futures, the U.S. crude oil benchmark, rose 0.6% to $68.70 per barrel.
The yield on the 10-year Treasury note, which has fallen in recent months as concerns about the economy have grown, was at 4.30% this morning, up from 4.25% at Friday’s close.