The major U.S. index futures are currently pointing to a sharply higher open on Monday, with stocks likely to see further upside after recovering from an early sell-off to end last Friday's trading modestly higher.
Early buying interest is likely to be generated in reaction to reports President Donald Trump plans to hold back some of the reciprocal tariffs set to take effect on April 2nd.
A report from the Wall Street Journal said Trump is narrowing his approach to the tariffs, likely omitting a set of industry-specific tariffs.
Bloomberg also said Trump's coming wave of tariffs is poised to be more targeted than the barrage he has occasionally threatened, citing aides and allies.
Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.
The Federal Reserve's preferred readings on consumer price inflation are likely to be in focus later this week, while reports on consumer confidence, new home sales and durable goods orders may also attract attention.
After moving sharply lower early in the session, stocks showed a significant recovery over the course of the trading day on Friday. The major averages climbed well off their worst levels of the day and into positive territory.
The tech-heavy Nasdaq saw a notable advance going into the close, ending the day up 92.43 points or 0.5 percent at 17,784.05 after tumbling by as much as 1.2 percent in early trading.
The Dow and the S&P 500 posted more modest gains. The Dow inched up 32.03 points or 0.1 percent to 41,985.35 and the S&P 500 crept up 4.67 points or 0.1 percent to 5,667.56.
With the turnaround on the day, the major averages closed higher for the week. The Dow jumped by 1.2 percent, while the S&P 500 and the Nasdaq snapped four-week losing streaks, rising by 0.5 percent and 0.2 percent, respectively.
The early weakness on Wall Street came amid ongoing concerns about the economic outlook along with rising geopolitical tensions and uncertainty about the impact of President Donald Trump's tariffs.
The selling pressure was partly offset by comments from Trump suggesting "there'll be flexibility" with the reciprocal tariffs set to be imposed April 2nd.
However, Trump said during the same remarks in the Oval Office that providing exceptions for one country means "you have to do that for all," furthering the uncertainty about his plans.
While the broader markets rebound, shares of FedEx (FDX) remained sharply lower, with the delivery giant plunging by 6.5 percent on the day.
The slump by FedEx came after the company reported slightly weaker than expected fiscal third quarter earnings and lowered its full-year earnings guidance due to "continued weakness and uncertainty in the U.S. industrial economy."
Dow component Nike (NKE) also tumbled by 5.5 percent after the athletic apparel and footwear giant reported fiscal third quarter results that beat estimates but forecast a decrease in sales in the current quarter.
Chipmaker Micron Technology (MU) also plummeted by 8.0 percent even though the company reported better than expected fiscal second quarter results and provided upbeat guidance.
Despite the recovery by the broader markets, steel stocks continued to see significant weakness, with the NYSE Arca Steel Index tumbling by 2.2 percent.
Considerable weakness also remained visible among housing stocks, as reflected by the 2.0 percent slump by the Philadelphia Housing Sector Index.
Homebuilder Lennar (LEN) climbed well off its worst levels but still closed down by 4.0 percent after reporting better than expected fiscal first quarter results but forecasting fiscal second quarter new orders below estimates.
Gold, commercial real estate and semiconductor stocks also saw notable weakness, while strength emerged among software and computer hardware stocks.
Commodity, Currency Markets
Crude oil futures are climbing $0.44 to $68.72 a barrel after rising $0.21 to $68.28 a barrel last Friday. Meanwhile, after slumping $22.40 to $3,021.40 an ounce in the previous session, gold futures are increasing $11.20 to $3,032.60 an ounce.
On the currency front, the U.S. dollar is trading at 149.83 yen versus the 149.32 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0824 compared to last Friday's $1.0818.
Asia
Asian stocks ended mixed on Monday as investors awaited clarity on the next round of tariffs from U.S. President Donald Trump set for April 2.
Oil and gold prices edged up slightly in Asian trading as the dollar resumed its fall after a modest recovery in recent days.
China's Shanghai Composite Index edged up by 0.2 percent to 3,370.03 after Trump said his top trade chief, Jamieson Greer, will hold talks with his Chinese counterpart this week on tariffs.
Chinese Premier Li Qiang said the country is prepared for "shocks that exceed expectations" from the looming tariff announcement.
Hong Kong's Hang Seng Index climbed 0.9 percent to 23,905.56 amid signs of improving global sentiment towards China.
Japanese stocks ended slightly lower to extend losses for a third straight session as a survey showed Japanese business activity shrank for the first time in five months in March.
The Nikkei 225 Index slipped 0.2 percent to 37,608.49, with exporters and financials leading losses. The broader Topix Index settled 0.5 percent lower at 2,790.88 ahead of a looming deadline for implementing additional U.S. tariffs.
SoftBank, which is marching ahead on its ambitions to build out a major AI operation in its home market of Japan, rose 3 percent.
Seoul stocks fell after South Korea's Constitutional Court dismissed the impeachment of Prime Minister Han Duck-soo and reinstated him as acting president, ruling the accusations against him weren't against the law or weren't serious enough to remove him from office. The Kospi ended down 0.4 percent at 2,632.07.
Australian markets ended on a flat note despite strong gains in the banking sector and upbeat Judo Bank Purchasing Managers Index data.
The flat close came as Australia's Treasurer Jim Chalmers sounded the alarm over the "seismic" economic impact of U.S. tariff policies.
James Hardie Industries plunged 14.5 percent after the building materials company struck an $8.7bn cash-and-stock deal to buy decking manufacturer Azek.
Helia Group shares plummeted 25.6 percent. The mortgage insurance provider said its lenders mortgage insurance (LMI) contract with Commonwealth Bank is at risk.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index inched up 0.1 percent to 12,128.21.
Europe
European stocks are little changed on Monday even after data showed Eurozone private sector expanded for the third straight month in March.
Manufacturing production increased for the first time in two years, joining services in growth territory, data from S&P Global showed on Monday.
The HCOB flash composite output index ticked up to 50.4 in March from 50.2 in February. The score has remained above the threshold 50.0 indicating expansion for the third successive month.
Investors also await greater clarity on U.S. tariffs after U.S. President Donald Trump said there would be "flexibility" on his reciprocal tariff plan and that he would discuss tariffs with Chinese President Xi Jinping.
While the German DAX Index is up by 0.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.1 percent.
France's Vivendi SE rose about 1 percent after reducing its stake in Telecom Italia to 18.4 percent.
Plus500 gained half a percent. The U.K.-based broker said it would acquire Indian financial services firm Mehta Equities for $20 million.
Bayer AG has slumped. The German agricultural and pharmaceutical group has been ordered by a Georgia state court to pay $2.1 billion in a case involving its Roundup weed killer.
U.S. Economic News
No major U.S. economic data is scheduled to be released today.
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March 21, 2025 09:58 ET Central banks, led by the U.S. Fed, were in focus this week as they announced their latest policy moves. The Fed revealed the latest interest rate decision and outlook mid-week. Economic data released this week in the U.S. included retail sales figures for February. In Europe, central banks of the U.K. and Switzerland, among several others, announced their rate decisions. The Bank of Japan was in the news in Asia as it revealed its latest policy decision.