Traders work on the floor of the New York Stock Exchange during afternoon trading on October 03, 2024 in New York City.
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Stock futures were little changed on Tuesday evening after uncertainty around President Donald Trump’s tariffs sent the major averages on a roller-coaster ride. Investors also awaited a consumer inflation report due Wednesday.
Futures tied to the Dow Jones Industrial Average advanced 27 points, or 0.07%. S&P 500 futures were 0.08% higher, while Nasdaq 100 futures gained 0.1%.
The after-hours action comes after a whirlwind day for tariff policy that ultimately resulted in losses for all three of the major averages. At its lowest point in the session, the S&P 500 was down 10% from its closing high. The 30-stock Dow lost nearly 480 points.
Earlier in the day, Trump said he would double import duties on Canadian steel and aluminum imports to 50% as of Wednesday. That move was in response to Ontario’s decision to tack on a 25% levy on electricity exported to the U.S.
Later Tuesday, Ontario Premier Doug Ford said he would pause the surcharge. White House trade advisor Peter Navarro followed that by telling CNBC Tuesday afternoon that Trump would not raise the Canadian steel and aluminum tariffs to 50%. However, the 25% duty on these metals would still go into effect on Wednesday.
Traders are facing another catalyst on Wednesday: the consumer price index reading for February. Economists polled by Dow Jones expect the CPI rose 0.3% last month and they anticipate headline inflation grew 2.9% from 12 months earlier.
The results will inform the Federal Reserve’s next policy steps at a time when the market’s worries about inflation and slowing growth are starting to reignite.
“We’re just waiting on some kind of policy response, either from the Fed or the administration,” 3Fourteen Research co-founder Warren Pies told CNBC’s “Closing Bell on Tuesday. “I think that’s going to be a little bit slow coming. And so I don’t think it’s time to buy the dip just yet.”
Tariffs have become a thorn in the side of Wall Street as investors worry that the duties could force the U.S. economy into a recession, given that consumers are already dealing with persistently high prices for essential goods including eggs and coffee.