Stock futures were rising early Wednesday after a roller-coaster ride earlier in the week.
On Tuesday, stocks fell sharply as President Donald Trump announced additional tariffs on Canadian aluminum and steel. That was part of tit-for-tat measures after Canada introduced levies on exports of electricity to the U.S. Both the additional taxes were called off later in the day, at least temporarily, as the two sides agreed to meet to discuss the situation further.
That left stocks finishing slightly lower, having gone way down and back up over the course of the day. Global 25% tariffs on all steel and aluminum imports take effect today.
It’s an exhausting set of events that may leave many traders shell shocked about what comes next. Wednesday’s early market gains may not last long, if Tuesday is anything to go by–futures started higher yesterday before later plummeting. The S&P 500 dipped briefly into a correction–defined as a 10% drop from the most recent peak–before recovering slightly. It still finished at a six-month low.
There will be things other than tariffs affecting markets today. Inflation data for February will shape expectations for the Federal Reserve’s next decisions. Traders still see no change in interest rates at the meeting next week, but the outlook could shift rapidly. Software firm Adobe and communications company Crown Castle report earnings.
Futures tracking the Dow Jones Industrial Average added 82 points, or 0.2%. Contracts tied to the S&P 500 were up 0.3%, as were those tied to the Nasdaq.
Bond yields rose yesterday and stayed slightly higher early Wednesday. The 10-year Treasury was at 4.276%, compared with readings below 4.2% Monday. The two-year note yield was at 3.941%.