Dow, S&P 500, Nasdaq futures jump after Lutnick hints at tariff relief

US stock futures jumped on Wednesday, set to rebound from a sharp sell-off, amid hopes that President Donald Trump could scale back his new tariffs on Canada and Mexico as soon as Wednesday.

Commerce Secretary Howard Lutnick suggested late Tuesday that an existing Trump trade deal could provide a pathway to relief on some imports for Canada and Mexico as soon as Wednesday.

S&P 500 futures (ES=F) rose roughly 0.6%. Futures attached to the Dow Jones Industrial Average (YM=F) gained 0.5%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) gained 0.8%.

CME – Delayed Quote USD

As of 7:49:26 AM EST. Market Open.

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Traders received fresh signals on Trump’s next moves in the trade war and beyond after he addressed Congress Tuesday night. The President acknowledged the current state of economic discomfort by saying, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.”

The S&P 500 erased its post-election gains, and the Dow shed more than 650 points after Trump implemented delayed 25% tariffs on Canada and Mexico, and doubled duties on China. The affected countries responded with countermeasures.

On Wednesday, the ADP National Employment Report will offer insight into private payroll growth, and Abercrombie & Fitch (ANF) is set to report earnings.

LIVE 9 updates

Investors aren’t cheering for Fed rate cuts anymore

The market is now pricing in three rate cuts from the Federal Reserve this year as traders increase their bets on Fed easing amid concerns about US economic growth.

Yahoo Finance’s Josh Schafer reports:

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Copper surges as Trump signals 25% tariff on imports

Copper prices jumped over 5% in New York, outpacing global benchmarks, after President Donald Trump floated a 25% tariff on imports of the metal.

Bloomberg reports:

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Good morning. Here’s what’s happening today.

Economic data: ADP Private Payrolls (February); S&P Global Services PMI (February); ISM Services PMI (February); Factory orders (January); Federal Reserve Beige Book

Earnings: Abercrombie & Fitch (ANF), Foot Locker (FL), Campbell Soup (CPB), Thor Industries (THO), Dine Brands (DIN), Marvell (MRVL), MongoDB (MDB), Rigetti Computing (RGTI), Victoria’s Secret (VSCO), Veeva Systems (VEEV)

Here are some of the biggest stories you may have missed overnight and early this morning:

Wall Street is delivering its judgement of Trump’s economic policy

Trump preps markets for ‘a little disturbance’ on tariffs

America’s farmers again take center stage in Trump trade war

Lutnick: Tariffs on Canada, Mexico could ease by Wednesday

Investors aren’t cheering for Fed rate cuts anymore

US copper prices surge as Trump signals 25% tariff on imports

BlackRock’s Panama Canal deal is just its latest Trump-era win
Auto stocks rally after Lutnick hints tariffs on Canada, Mexico could be cut

In a sign of relief for Detroit automakers, Commerce Secretary Howard Lutnick suggested the Trump administration could scale down new tariffs on Canada and Mexico.

Lutnick said on Tuesday that the president’s team is looking at the 2020 US-Mexico-Canada Agreement — a Trump 1.0 deal — as a way to meet “somewhere in the middle”. An announcement could come on Wednesday, he said.

Sources told Reuters that talks between the three countries are focusing on exemptions under USMCA’s rules of origin, which are largely aimed at auto companies.

General Motors (GM) stock rose 4% in premarket, while Ford (F) and Stellantis (STLA). rose about 2% and 6%, respectively. The auto giants closed Tuesday with losses.

Reuters reports:

See more here.
CK Hutchinson soars as Li Ka-shing escapes Trump’s glare

There’s a flipside to the selling spurred by Trump’s rapid-fire shifts — the boost to individual stocks likely to see some benefit.

In Li Ka-shing’s case, shares of his company CK Hutchinson (CKHUY, 0001.HK) surged in Hong Kong after the 96-year-old billionaire turned a Trump threat into one of the deals of his lifetime.

Bloomberg reports:

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Gold pulls back from record high as trade war fuels demand for haven assets

Gold (GC=F) has reversed its upward trajectory after gaining over 2% in the past two sessions and approaching its record high. This comes as volatility from President Donald Trump’s tariff actions sparks increased demand for safe-haven assets.

Bloomberg reports:

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Trump preps markets for ‘a little disturbance’ in first address to Congress

President Donald Trump doubled down on ambitious tariff plans in an address to Congress on Tuesday night. In a wide-ranging speech, Trump referenced the current state of economic insecurity, proclaiming, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.”

President Trump touched on tariffs, taxes, Ukraine and the CHIPS act during his address to a joint session of Congress, with Wall Street hoping for relief after two days of stock losses led the S&P 500 to it’s lowest close since the election.

Yahoo Finance’s Ben Werschkul reports:

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Chinese stocks climb as growth target sparks optimism for stimulus measures

Chinese stocks rose Wednesday as the country’s top leaders kicked off annual parliamentary meetings. They revealed key economic targets, fueling expectations for additional stimulus measures.

Bloomberg reports:

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Oil falls as tariffs lower trust, OPEC+ raise crude production

Oil prices dropped for a third consecutive session on Wednesday as key producers plan to increase output in April, coupled with concerns that US tariffs on Canada, Mexico, and China could slow economic growth and fuel demand, dampening investor sentiment.

Reuters reports:

Read more here.