US Stock Futures Gain After Monday Mayhem – Wharton Professor Jeremy Siegel Says ‘Warnings Signs’ Are Beginning To Emerge

U.S. stock futures climbed on Tuesday morning, indicating that the market could be headed for a rebound on Wednesday as global equities registered gains after a three-day market rout induced by President Donald Trump’s reciprocal tariffs.

While the Dow Jones futures were 2% in the green at the time of writing, the S&P 500 and Nasdaq Composite were up 1.3% each. Futures of the Russell 2000 index were up nearly 2%, indicating a potential rebound in small-cap stocks as well.

In Asia, Japan’s Nikkei 225 gained 5.7%, followed by Hong Kong’s Hang Seng and China’s Shanghai Composite indices, which gained 1.5% each.

As the Trump administration remained defiant on its tariff policies over the weekend, stocks and indices witnessed a volatile session on Monday as tariff confusion continued to play on the minds of investors.

The Dow Jones closed 0.9% in the red, while the S&P 500 declined 0.2%. The Nasdaq Composite ended up closing in the green, with minor gains of 0.1%, as Nvidia Corp. (NVDA) gained 3.5% to beat a wider morose sentiment.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY) was up 1.5% on Tuesday morning, while Invesco QQQ Trust (QQQ) climbed 1.4%.

Bitcoin (BTC) staged a recovery, too, gaining over 2.5% in the past 24 hours.

Warning Signs Ahead?

Jeremy Siegel, a Wharton School professor and chief economist at WisdomTree, noted that President Trump’s “aggressive” tariff measures could create economic hardships in the future.

“While the latest employment data revealed a robust labor market heading into this turbulence, warning signs are beginning to emerge, suggesting a sharp deterioration in economic momentum should these tariffs remain in place,” he said. 

Notably, the CBOE Volatility Index (VIX) has nearly doubled since the Trump administration announced reciprocal tariffs on April 2, pointing to heightened concerns in the equities market.

However, Siegel sees a potential silver lining amid the dark cloud if President Trump reverses course and takes the off-ramp to tariffs after extracting some concessions.

“Should that happen, the oversold sectors, especially high-beta stocks, would likely lead the rebound,” he said while urging investors to stay the course.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: How One Social Media Post Briefly Flipped Markets And Fueled False Hopes Of A Trump Tariff Reversal

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