Futures for the major U.S. stock indexes suggest a largely flat open on Tuesday, as investors appear cautious following a session that closed with modest gains.
Market participants seem hesitant to take bold positions ahead of the looming August 1 deadline for President Donald Trump’s planned “reciprocal tariffs,” keeping trading activity subdued.
On Monday, stocks started off with gains and maintained positive momentum for much of the day before slipping back in the final hours of trading.
Even with the late-session retreat, both the Nasdaq and S&P 500 closed at fresh record highs.
The Nasdaq increased by 78.52 points, or 0.4%, settling at 20,974.17, while the S&P 500 edged up 8.81 points, or 0.1%, to finish at 6,305.60. In contrast, the Dow Jones Industrial Average dipped slightly by 19.12 points, less than 0.1%, closing at 44,323.07.
Early optimism was fueled by positive trade outlooks, with Commerce Secretary Howard Lutnick expressing confidence that the U.S. and European Union will reach a trade agreement.
“These are the two biggest trading partners in the world, talking to each other. We’ll get a deal done,” Lutnick told CBS News over the weekend. “I am confident we’ll get a deal done.”
Still, Lutnick emphasized that August 1 marks a firm deadline for the implementation of new tariffs.
“Nothing stops countries from talking to us after August 1st, but they’re going to start paying the tariffs on August 1st,” he said.
Buying momentum faded throughout Monday as traders turned their attention toward upcoming earnings reports from high-profile companies like Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Intel (NASDAQ:INTC).
On the economic front, the Conference Board released data showing a larger-than-expected decline in its leading economic indicators for June.
The index fell 0.3% last month, following a revised flat reading in May, compared to economists’ expectations for a 0.2% drop.
Despite broader market softness, gold stocks rallied strongly, pushing the NYSE Arca Gold Bugs Index up 3.8%, driven by a sharp rise in gold prices.
Steel shares also gained traction, with the NYSE Arca Steel Index jumping 2.5%.
Telecommunications and retail sectors saw some gains, while natural gas and biotech stocks experienced notable declines.
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