US pre-open: Futures higher following Monday's sell-off

(Sharecast News) - Wall Street futures had major indices reclaiming some of yesterday's losses as markets remain volatile following the announcement of Donald Trump's "reciprocal" tariffs earlier this month. As of 1210 BST, Dow Jones futures were up 0.82%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.97% and 0.98% firmer, respectively.

The Dow closed 971.82 points lower on Monday amid heightened tensions between the White House and the Federal Reserve Bank as Donald Trump branded Jerome Powell a "major loser" and economic advisor Kevin Hassett stated the administration was currently looking into his possible "termination".

Stocks were in the green prior to the open following Monday's heavy sell-off, with both the Dow Jones and Nasdaq Composite turning in their fourth consecutive losing sessions amid growing concerns about the deteriorating relationship between the central bank and the Trump administration.

Trade Nation's David Morrison said: "Powell's second term as Fed Chair runs through to next year, and it's widely understood that the President doesn't have the authority to sack him. However, some are speculating that Mr Trump's antagonistic attitude may persuade Mr Powell to stand down early. If he did, the market reaction seems likely to be extremely negative. This all comes on the back of Jerome Powell's hawkish and downbeat message last week, where he highlighted the ongoing tariff situation as clouding the picture when it comes to easing monetary policy further.

"But some see Powell's Fed as being far from agnostic in its rate decisions. They cite the 75 basis-points-worth of cuts made ahead of the Presidential Election as a political move in support of former President Biden. They also see the Fed's reluctance to cut now as a deliberate act to make life uncomfortable for the new White House incumbent. Whether justified or complete rubbish, it all adds fuel to the fire of what is potentially a very destabilising situation."

On Tuesday's macro slate, the Richmond Federal Reserve's April manufacturing index will be released at 1500 BST, while market participants will also focus on speeches from Federal Reserve bankers Patrick Harker, Philip Jefferson, Neel Kashkari, Thomas Barkin and Adriana Kugler throughout the course of the day.

In the corporate space, Tesla, Verizon, Lockheed Martin, Chubb, 3M, Capital One and Halliburton were all slated to report earnings on Tuesday.

Reporting by Iain Gilbert at Sharecast.com