Dow Set to Open Up After Selloff
U.S. stock futures rose early Tuesday following a sharp selloff in the previous session after President Donald Trump ramped up his criticism of Federal Reserve Chair Jerome Powell.
Futures on the S&P 500 climbed 0.8%. Dow Jones Industrial Average futures were also up 0.8%, as were those tied to the Nasdaq 100 ahead of the open. All three major indexes tumbled Monday–the S&P 500 fell 2.4%, the Nasdaq Composite 2.6% and the Dow slipped 2.5%, or 972 points.
The Dow is down 9% so far this month, on track for its worst April since 1932, according to Dow Jones Market Data.
The selling pressure came after Trump called Powell “a major loser” and criticized the Fed for holding interest rates steady, adding that many people have been calling for preemptive rate cuts. Last week Trump said Powell’s termination “cannot come fast enough,” raising concerns he may look to replace the Fed Chair.
“While potential risks to Fed independence had already generated headlines in recent weeks, yesterday’s market moves were the clearest sign yet of investor anxiety over the topic,” Deutsche Bank strategist Jim Reid said.
But there were early signs of a rebound Tuesday, although European and Asian markets were falling as they caught up with the Wall Street action from late Monday.
The U.S. Dollar Index, which fell to a three-year low Monday, edged higher to 98.33, while longer-term bonds continued to struggle as the yield on the 10-year Treasury note climbed to 4.42% early in the day. The 30-year Treasury yield hit a three-month high Monday and edged up again Tuesday.
Investors will be watching earnings closely this week for signs of how Trump’s tariffs regime is impacting businesses and trade. Tesla will report results after the close, while 3M, Lockheed Martin and Verizon Communications are among those releasing earnings before the open.