US stock futures demonstrated stability as Wall Street, feeling exhausted, found comfort in indications that President Donald Trump might show flexibility before the upcoming tariff deadline. The Dow Jones Industrial Average futures remained unchanged, while futures linked to the S&P 500 and the Nasdaq Composite edged up by 0.1%.
Stocks have been on the rise following Trump's remarks on Friday and Monday, hinting at a possible willingness to be accommodating or provide exemptions on reciprocal tariffs scheduled to be implemented on April 2.
The recent optimism in the market comes after Trump's tougher stance on imposing new tariffs caused turmoil on Wall Street, particularly with threats towards the EU and Canada that led to a sell-off, pushing the S&P 500 into correction territory.
Earnings reports from Dollar Tree set for Wednesday and Lululemon on Thursday are awaited, with retailers being anxious about upcoming tariffs amidst declining consumer confidence. Some companies have adjusted their forecasts, while others have raised concerns about supply chain disruptions.
Investors will closely monitor the release of February's Personal Consumption Expenditures Index on Friday to gauge whether the Federal Reserve will proceed with the planned interest rate cuts later this year.