Wall Street's Tariff Tango: Market Jitters Amid Policy Shifts

U.S. stock futures declined following a surge in major indexes due to hopeful signs of reduced tariff tensions. Wall Street reacted to potential tariff flexibility hinted by President Trump. However, uncertainties persist, affecting market sentiment and leading to volatility in futures and individual stocks like Tesla.

On Tuesday, U.S. stock index futures experienced a dip after Wall Street indexes soared to two-week highs, spurred by expectations of a more lenient U.S. tariff policy. The optimism came after President Trump suggested that not all threatened tariffs would be enforced by April 2, indicating possible exemptions for some countries.

The S&P 500 and Nasdaq, bolstered by gains in major tech stocks including Nvidia and Tesla, hit their highest in over two weeks. However, Tuesday's futures saw declines amid prevailing uncertainties surrounding the extent of Trump's tariffs, which continue to impact market sentiment.

Amid this context, Tesla shares fell by 0.4% in premarket trade, reversing some of its previous day's 12% increase. Meanwhile, economic indicators like consumer confidence and the anticipated personal consumption expenditures price index, a key inflation measure, are in focus as they may influence market directions this week.

(With inputs from agencies.)