US Stock Futures Rise After Trump-Induced Plunge, Strategist Upholds Defensive Position: Traders Eye Verizon, Tesla Earnings

Early indications suggest U.S. stocks could rebound on Tuesday following the previous session's battering, dragged by worries concerning tariffs and President Donald Trump stepping up his tirade against Federal Reserve Chair Jerome Powell.

The major index futures traded as below in the Asian session:

• S&P 500 futures: +0.71%
• Nasdaq 100 futures: +0.70%
• Dow futures: +0.59%
• Russell 2,000 futures: +0.69%

The benchmark U.S. 10-year Treasury note yielded 4.411% in overnight trading after it settled Monday's session up 7.2 basis points at 4.405%.

The risk-off mood is still in play, with safe-haven gold rising from Monday's record close of $3,459.95. 

The WTI grade crude oil futures were up nearly a percent late-Monday after ending marginally higher at $63.02 a barrel. 

The U.S. Dollar Index, which measures the greenback's value against a basket of its major counterparts, rebounded in the Asian session, reversing from a three-year low hit on Monday. 

Looking ahead to Tuesday's session, traders will likely tune in to speeches by Philadelphia Fed President Patrick Harker, Minneapolis Fed President Neel Kashkari, and Richmond Fed President Thomas Barkin.

Earnings from 3M Co. (MMM) and Verizon Communications, Inc. (VZ), defense contractors Lockheed Martin Corp. (LMT), Northrop Grumman Corp. (NOC) and GE Aerospace (GE), and oilfield services company Halliburton Co. (HAL), are also on tap ahead of the market open.

Tesla, Inc. (TSLA), Intuitive Surgical, Inc. (ISRG), Capital One Financial Corp. (COF), and Baker Hughes Co. (BKR) are due to report after the market closes.

Fund manager Louis Navellier said it is time for traders to think and prosper during what he sees as a "spectacular earnings season."

Ahead of Monday's session, Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report, said there are too many unknowns regarding tariffs, corporate earnings and guidance, and recession risk.

"Based on the uncertainty of the tone and duration of the tariff negotiations and unknown impact on the global economy, we are still maintaining defensive positioning, but with an improving outlook," he said.

On Monday, stocks traded below the unchanged line throughout the session before ending sharply lower. 

Trump's comments about Powell being "Mr. Too Late, a major loser," on top of his string of comments against the head of the central bank last week, weighed heavily.

The broader S&P 500 Index ended 2.36%, or 124.50 points, lower at 5,158.20, marking its lowest level since April 8.

All the S&P 500 sector classes ended in the red, with energy being the worst hit.

The index is now down about 16.1% from its Feb. 19 intraday record.

The Nasdaq Composite fell a steeper 2.55% or 415.55 points to 15,870.90, with much of the weakness centered around big techs. The Roundhill Magnificent Seven  ETF (MAGS), an exchange-traded fund (ETF) that tracks seven mega-cap stocks, plunged 3.34%.

The 30-stock Dow Jones Industrial Average lost nearly 975 points or 2..48% to 38,170.41, with all but one component closing lower.

The sell-off didn't spare small caps, with the Russell 2000 Index sliding 40.30 points or 2.14% to 1,840.32.

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Monday's session down 2.38% at $513.88, while the Invesco QQQ Trust (QQQ) ETF slumped 2.47% at $433.11.

The SPY and QQQ are now down over 12% and 15%, respectively, for the year-to-date period.

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