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Investing.com-- U.S. stock index futures rose Tuesday evening after Commerce Secretary Howard Lutnick hinted that President Donald Trump could enter negotiations with Mexico and Canada, just a day after imposing substantial tariffs on imports from both neighboring nations.
In regular trading, major stock indices plunged over the past two sessions after Trump imposed 25% tariffs on Mexico and Canada, along with 20% levies on China, prompting swift retaliatory measures from both Canada and China.
S&P 500 Futures rose 0.7% to 5,832.25 points, while Nasdaq 100 Futures jumped 0.9% to 20,572.25 points by 18:58 ET (23:58 GMT). Dow Jones Futures gained 0.6% to 42,834.0 points.
Trump ready to ’meet in middle’ with Canada, Mexico, says US Commerce Chief
In a recent Fox Business interview, U.S. Commerce Secretary Howard Lutnick indicated that President Trump is prepared to "meet in the middle" with Canada and Mexico regarding the newly imposed tariffs.
This statement suggested potential negotiations to alleviate the trade tensions that escalated following the enforcement of these tariffs on March 4, 2025.
The tariffs, which include a 25% duty on imports from Canada and Mexico, as well as an increase to 20% on Chinese goods, have raised concerns about economic growth and consumer prices in the U.S., which is already grappling with high inflation.
In response, Canada has criticized the tariffs and announced immediate retaliatory measures, while Mexico has also signaled its intention to respond.
China’s finance ministry has said it would impose 15% tariffs on several agricultural products, along with a 10% tariff on dairy.
However, Lutnick’s remarks raised the possibility of a negotiated resolution to the current trade disputes.
Banks, automakers end sharply lower; pull US stocks lower
In regular trading, the S&P 500 fell 1.2% to 5,778.18 points, while the Dow Jones Industrial Average dropped 1.6% to 42,521.66, and the NASDAQ Composite lost 0.4% to 18,285.65.
Among financials, Morgan Stanley (NYSE:MS) led losses with a 5.7% decline, while JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs (NYSE:GS) fell nearly 4%, each.
In automakers, Ford Motor Company (NYSE:F) slipped 2.9%, while Stellantis NV (BIT:STLAM) declined 4.4%, and General Motors Company (NYSE:GM) lost 4.6%.
The technology sector, particularly companies involved in artificial intelligence and semiconductors, has been significantly volatile.
NVIDIA’s (NASDAQ:NVDA) stock rose 1.6%, after entering a bear market territory in the last session with an over 8% fall. Other companies like Broadcom Inc (NASDAQ:AVGO) and Super Micro Computer Inc (NASDAQ:SMCI) also rebounded.
