U.S. stock futures were flat on Tuesday following a significant sell-off on Wall Street after President Donald Trump’s tariffs on Canada, Mexico, and China took effect. The Dow Jones Industrial Average slipped 57 points or 0.1%, while the S&P 500 and Nasdaq Composite were marginally lower. On Monday, the broader market experienced its biggest daily loss since December, dropping 1.8%, with the Dow falling 649.67 points or 1.5% and the Nasdaq shedding 2.64%.
The benchmarks dropped after Trump confirmed the tariffs would go into effect, leaving no room for negotiation. In retaliation, China imposed additional tariffs, and Canadian Prime Minister Justin Trudeau announced a 25% levy on U.S. goods. Monday’s sell-off dragged the S&P 500 into the red for 2025.
Scott Ladner, chief investment officer at Horizon Investments, does not see a quick recovery for the losses. “Sentiment is really in the toilet, making it a slog to get any reversal,” he said. However, Ladner emphasized that the U.S. economy remains strong, with companies seeing earnings growth between 10% and 15%.
“We’re not heading into a recession. Our medium-term view is still really positive,” he added. European stock markets were broadly lower on Tuesday morning, with global knock-on effects anticipated after the tariff news.
The Stoxx 600 index was down 0.82% at 8:45 a.m. London time, with Stoxx autos falling 2.77%. Utilities and food and beverage stocks were bright spots, up 0.74% and 0.64%, respectively.
Stock futures stable amid tariff effects
Germany’s DAX dropped 1.5%, France’s CAC 40 was nearly 1% lower, and the U.K.’s FTSE 100 fell 0.66%. Japanese stocks led declines in Asia-Pacific markets after President Trump’s tariffs were confirmed to go into effect as planned. The benchmark Nikkei 225 index plunged 1.20% to end the day at 37,331.18, while the broader Topix index lost 0.71% to close at 2,710.18.
South Korea’s Kospi index ended the day 0.15% lower at 2,528.92, and Hong Kong’s Hang Seng index was down 0.16%. AI cloud-based GPU provider CoreWeave filed for an initial public offering (IPO) on the Nasdaq on Monday afternoon under the ticker symbol “CRWV.” The company gained popularity after the release of OpenAI’s ChatGPT and has been increasing its focus on artificial intelligence and graphics rendering. Last year, CoreWeave generated $1.92 billion in revenue, with 62% coming from AI services.
The IPO debut comes amid a broad market sell-off. Several stocks saw significant movements in after-hours trading:
GitLab: Shares popped 4% after the company reported an adjusted earnings of 33 cents per share in the fourth quarter, exceeding analyst expectations of 23 cents. Revenue also surpassed forecasts, coming in at $211 million compared to the expected $206 million.
Okta: The cloud software stock soared 15% after reporting fourth-quarter earnings of 78 cents per share, beating the expected 74 cents, with revenue reaching $682 million above the forecasted $670 million. AST SpaceMobile: Shares added 2% after the company reported a narrower than expected fourth-quarter loss of 18 cents per share, compared to the anticipated 19 cents. However, revenue disappointed, coming in at $1.9 million versus the expected $2.4 million.
Stock futures traded slightly above the flatline Monday night. Dow futures rose close to 0.2% shortly after 6 p.m. ET, with futures linked to the S&P 500 and Nasdaq 100 also gaining.