MARKETS
Stock Market and Stocks
U.S. stock futures are pointing to a higher open after violent swings on Monday on conflicting tariff news.
Stocks swung wildly at the start of the week, opening lower, then briefly popping higher on a withdrawn report that President Donald Trump would delay tariffs for 90 days, before dropping again on a new Trump threat to levy an additional 50% tax on China if it didn’t retreat from its 34% retaliatory tariff planned for Thursday. Volume was the highest in at least 18 years with roughly 29 billion shares changing hands.
“We may not have yet reached the bottom, but a day like today at least gives you some confidence that we could be close,” said Bankrate Chief Financial Analyst Greg McBride on Monday.
But at 5:35 a.m. ET Tuesday, blue-chip Dow futures added 1.85%, or up 700 points; S&P 500 futures rose 1.41%; and tech-heavy Nasdaq futures gained 1.15%.
Despite the sharp and swift drops over the previous three days, various firms like Wealthfront, Alight and Robinhood that track retail trading and 401(k) activity have noted that most investors remain invested with some picking up what they see as bargains amid the rubble.
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“Despite a sea of red, retail investors stood firm and not only bought the dip but did so at a historic pace,” wrote JPMorgan analysts led by Emma Wu last week. “They ended today (Thursday) with +$4.7 billion of net buying, the largest level over the past decade.”
The analysts and Wealthfront noted buying in Nvidia, Amazon and Apple.
Corporate news
- Levi Strauss said earnings in the first three months of its fiscal year topped analysts’ forecasts.
- Healthcare stocks like Humana, CVS Health and UnitedHealth jumped after The Wall Street Journal reported the Trump administration will raise payment rates for Medicare insurers next year to 5.06%, higher than the 2.23% increase the Biden administration had proposed.
- Broadcom approved a $10 billion share buyback program to last through the end of the year.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
