U.S. stock futures ticked higher on Tuesday, extending momentum from a sharp Wall Street rally sparked by expectations that President Donald Trump’s upcoming tariffs will be less severe than initially feared. Trump suggested Monday that “a lot of countries” could be exempt from the sweeping levies he’s been promoting for weeks. This exemption leads to a significant tariff relief.
Meanwhile, Tesla (NASDAQ: TSLA) saw its market share in Europe shrink in February amid intensifying competition and renewed criticism of CEO Elon Musk.
1. Futures Tick Up After Tariff Relief Rally
U.S. stock futures inched above the flatline Tuesday morning, reversing some earlier losses as markets built on optimism from Monday’s rebound.
As of 07:59 ET (11:59 GMT), Dow futures were up 49 points or 0.1%, S&P 500 futures gained 10 points or 0.2%, and Nasdaq 100 futures climbed 28 points or 0.1%.
Monday’s rally was driven by reports from Bloomberg and The Wall Street Journal that Trump’s proposed tariffs, expected to be unveiled on April 2, will be narrower in scope than previously discussed, excluding key sectors like automotive, semiconductors, and pharmaceuticals. This news added to the anticipated tariff relief.
The S&P 500 jumped 1.8%—its highest close in over two weeks—while tech stocks surged. Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) soared, pushing the PHLX Semiconductor Index up 3%. Tesla also enjoyed its strongest single-day gain since November, as investors hoped the company would benefit from the softened tariff approach.
2. Trump Softens Tariff Stance
Speaking to reporters Monday, Trump signaled that while tariffs on autos remain likely, not all previously proposed tariffs would be implemented.
He added that “a lot of countries” could receive exemptions, though offered little in the way of specifics. A White House spokesperson confirmed that the timing and scope of sector-specific tariffs remain undecided and are ultimately at Trump’s discretion.
These comments raised hopes that the administration may allow room for negotiation, easing fears of a broad economic fallout from aggressive trade policies. The possibility of such tariff relief was well-received by the market.
Further talks between U.S. and European officials are expected Tuesday in Washington. The EU recently postponed retaliatory tariffs on U.S. steel and aluminum to allow more time for diplomatic resolution.
Separately, Trump announced a 25% tariff on countries importing oil and gas from Venezuela, intensifying trade tensions and opening a new front in his ongoing tariff campaign.
3. Tesla Loses Ground in European Market
Tesla’s European performance took a hit in February, with sales dropping more than 40% year-on-year to 16,888 vehicles across the EU, the UK, and the EFTA region. Year-to-date sales are down 42.6%.
According to the European Automobile Manufacturers’ Association, Tesla’s market share fell to 1.8% from 2.8% a year earlier, despite the region’s overall battery-electric vehicle (BEV) market growing 26.1% year-over-year.
The decline highlights Tesla’s mounting challenges in Europe, including competition from lower-cost Chinese EV makers like SAIC and a relatively outdated vehicle lineup. Elon Musk’s controversial political activity—particularly his alignment with far-right European parties and close relationship with Trump—has also drawn criticism and may be affecting public perception.
4. U.S. and Ukraine to Hold Talks in Saudi Arabia
U.S. and Ukrainian officials are scheduled to meet in Saudi Arabia on Tuesday, following earlier talks between the U.S. and Russia focused on a potential ceasefire in the Black Sea.
Ukrainian President Volodymyr Zelenskiy confirmed the planned meeting in his nightly video address. The U.S. hopes that progress in these discussions could lead to broader peace negotiations aimed at ending the three-year conflict in Ukraine.
A Russian senator quoted negotiators as saying Monday’s discussions with the U.S. were “difficult but constructive,” according to Russian state media. A White House source told Reuters that progress was indeed made.
President Trump has pushed for a diplomatic resolution with Russia—marking a shift from the more confrontational stance taken by former President Joe Biden.
5. Oil Prices Rise on Venezuela-Linked Tariffs
Oil prices moved higher Tuesday, building on gains from the previous session, after Trump announced a 25% tariff on nations buying Venezuelan oil.
As of 08:00 ET, Brent crude futures had climbed 0.7% to $72.86 a barrel, while U.S. West Texas Intermediate futures rose 0.7% to $69.61 a barrel.
Both benchmarks advanced more than 1% on Monday following the tariff announcement. With China being Venezuela’s largest oil buyer, the move could tighten global oil supply and drive prices higher in the near term.