Stock futures advanced Tuesday evening as investors braced for a critical consumer inflation report, set for release on Wednesday. The market remained volatile following uncertainty surrounding former President Donald Trump’s tariff policies.
Futures tied to the Dow Jones Industrial Average climbed 83 points (0.2%), while S&P 500 futures rose 0.3% and Nasdaq 100 futures gained 0.4%.
Market Volatility and Tariff Uncertainty
Tuesday’s trading session was marked by significant swings, culminating in losses across major indices. The S&P 500 dropped as much as 10% from its recent closing high, while the Dow Jones Industrial Average fell nearly 480 points (1.1%) and the Nasdaq Composite declined 0.2%.
The turbulence stemmed from Trump’s earlier announcement that import duties on Canadian steel and aluminum would double to 50% starting Wednesday—a response to Ontario’s decision to impose a 25% levy on electricity exports to the U.S.
However, Ontario Premier Doug Ford later announced a pause on the electricity surcharge. This was followed by White House trade advisor Peter Navarro clarifying that the U.S. would not raise tariffs to 50%, though the 25% tariff would still take effect as planned.
Inflation Data and Federal Reserve Outlook
Wednesday’s Consumer Price Index (CPI) report is expected to provide critical insight into inflation trends. Economists surveyed by Dow Jones anticipate a 0.3% increase for February, with annual inflation projected at 2.9%.
The data will likely influence the Federal Reserve’s next steps, as investors grow increasingly concerned about rising inflation and slowing economic growth.
“We’re just waiting on some kind of policy response, either from the Fed or the administration,” said Warren Pies, co-founder of 3Fourteen Research, on CNBC’s Closing Bell. “I think that’s going to be a little bit slow coming. And so I don’t think it’s time to buy the dip just yet.”
As markets digest tariff developments and key inflation data, investors remain on edge, closely watching for signals on monetary policy and economic direction.
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