(Bloomberg) — Wall Street’s brief rally looked set to falter on Tuesday, sapped by President Donald Trump’s latest tariff threats and the likelihood of fewer interest-rate cuts than currently priced.
Contracts on the Nasdaq 100 slipped 0.2% while those on the S&P 500 were down 0.1%, indicating a retreat after what was one of the best days for the US stock market this year. In premarket trading, Tesla Inc. was on track to snap its longest winning streak of 2025, as data showed fresh sales declines in Europe.
Markets have been unnerved by a fresh tariff salvo from Trump, who threatened a 25% levy on any nation purchasing crude from Venezuela. Brent crude rose 0.5%, adding to Monday’s gain.
Tariffs are dominating the news flow this week, with US stocks soaring on Monday on signs that trade sanctions will be narrower than feared. Trump also said he will announce tariffs on automobile imports in the coming days — and indicated nations will receive breaks from next week’s “reciprocal” tariffs, further adding to confusion about the plan for sweeping levies to kick in on April 2.
“Between now and the 2nd of April, it’s just a phase of wait and see,” said Michael Nizard, head of multi-asset at Edmond de Rothschild Asset Management. “If Trump is doing exactly what he’s saying in terms of reciprocal tariffs, it should be negative both for Wall Street and Main Street.”
Investors also remain unclear on how tariffs might impact inflation and economic growth, with most recent data hinting at softer economic momentum alongside still-elevated price pressures. While swaps still price the Federal Reserve to cut rates twice this year, Atlanta Fed chief Raphael Bostic said Tuesday he sees just one 25 basis-point reduction, due to “very bumpy” inflation.
Treasury yields edged higher, while Bloomberg’s dollar index steadied after four days of gains. Gold prices rose slightly, holding just off recent record highs.
Earlier, Asian equities took a hit as a gauge of Hong Kong-listed Chinese technology shares slumped 3.8%. fueled by a lack of positive surprise in earnings and Xiaomi Corp.’s jumbo share sale.
Turkish stocks rose about 4% and the lira held steady, after authorities implemented emergency measures to calm markets rattled by the arrest of a key opposition figure. The country’s top economic officials will speak with foreign investors later on Tuesday.
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 rose 0.6% as of 9:58 a.m. London time
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S&P 500 futures were little changed
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Nasdaq 100 futures fell 0.2%
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Futures on the Dow Jones Industrial Average were little changed
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The MSCI Asia Pacific Index fell 0.3%
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The MSCI Emerging Markets Index fell 0.7%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was unchanged at $1.0801
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The Japanese yen rose 0.2% to 150.47 per dollar
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The offshore yuan was little changed at 7.2673 per dollar
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The British pound was little changed at $1.2931
Cryptocurrencies
Bonds
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The yield on 10-year Treasuries advanced two basis points to 4.35%
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Germany’s 10-year yield advanced five basis points to 2.82%
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Britain’s 10-year yield advanced three basis points to 4.74%
Commodities
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Brent crude rose 0.7% to $73.49 a barrel
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Spot gold rose 0.4% to $3,023.03 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Aya Wagatsuma.
©2025 Bloomberg L.P.
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