U.S Stock Futures Rise on Auto Tariff Exemption Hopes Amid Ongoing Uncertainty

U.S. stock index futures edged higher on Tuesday, driven by optimism that the auto sector could receive tariff relief. President Donald Trump suggested potential exemptions for the 25% tariffs imposed on foreign auto imports, sparking investor hope that the automotive industry might benefit from some relief. Despite this, Ford shares rose by 0.6%, while General Motors saw a slight decline of 1.1% following a downgrade by a brokerage firm.

However, uncertainty remained a key theme for investors as the pharmaceutical sector faced scrutiny. The Trump administration is reportedly moving forward with probes into pharmaceutical and semiconductor imports, which could lead to new tariffs. Analysts warned that the situation only added to the unpredictability in the markets, which have been shaken by rapid policy shifts in recent months.

In addition to concerns over tariffs, corporate earnings will be closely monitored in the coming weeks, with major companies like Bank of America, Citigroup, and Johnson & Johnson set to release their results. These earnings will offer insight into how businesses and consumers are responding to ongoing trade policy changes. Investors will also be looking for economic reports, including data on import/export prices and the latest manufacturing survey from the New York Federal Reserve.

Despite the modest uptick in futures trading, the market’s volatility persisted, and analysts expect this trend to continue unless more clarity emerges on U.S. trade policies. Global investors have become more cautious, slashing their U.S. equity holdings and signaling further reductions in exposure. With major stock indices facing losses this year, market participants remain on edge as uncertainty continues to drive market fluctuations.

Source: Reuters