Stock Market Update

The S&P 500 futures are up 66 points and are trading 1.2% above fair value, the Nasdaq 100 futures are up 291 points and are trading 1.5% above fair value, and the Dow Jones Industrial Average futures are up 391 points and are trading 0.9% above fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are higher after the Nasdaq Composite and S&P 500 broke four-week losing streaks. Reports that President Trump is expected to narrow the reciprocal tariffs that will be announced on April 2 to targeted nations, and industry specific tariffs will be omitted, have provided a catalyst for markets to continue rising.

In tariff-related news, China is mulling limiting its own exports to appease President Trump amid the ongoing trade war, according to The Wall Street Journal.

Today's economic lineup features the preliminary March S&P Global US Manufacturing PMI and S&P Global US Services PMI at 9:45 ET.

In corporate news:

• Meta Platforms (META 612.45, +16.20, +2.7%): OpenAI and Meta (META) want artificial intelligence alliance with Reliance, according to The Information
• Kenvue (KVUE 23.54, +0.23, +1.0%): TOMS Capital Management wants Kenvue (KVUE) sale or separation (INSID), according to Bloomberg
• Tesla (TSLA 258.73, +9.96, +4.0%): aims to halt driving assistance trial software in China before approval, according to Reuters
• Ford Motor (F 10.12. +0.12, +1.2%): NHTSA opens investigation into 1.3 mln F-150 trucks over unexpected gear downshift issue, according to CNBC

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: +0.9%, China's Shanghai Composite: +0.2%, India's Sensex: +1.4%, South Korea's Kospi: -0.4%, Australia's ASX All Ordinaries: UNCH.
  • In economic data:
    • Japan's flash March Manufacturing PMI 48.3 (expected 49.2; last 49.0) and flash Services PMI 49.5 (last 53.7)
    • India's flash March Manufacturing PMI 57.6 (last 56.3) and flash Services PMI 57.7 (last 59.0)
    • Singapore's February CPI 0.8% m/m (last -0.8%); 0.9% yr/yr (expected 1.0%; last 1.2%). February Core CPI 0.6% yr/yr (expected 0.7%; last 0.8%)
    • Australia's flash March Manufacturing PMI 52.6 (last 50.4) and flash March Services PMI 51.2 (last 50.8)
  • In news:
    • Japan's Flash Manufacturing PMI for March (48.3; prior 49.0) showed a deepening contraction while readings from Australia (52.6; prior 50.4) and India (57.6; prior 56.3) showed an acceleration in activity.
    • Bank of Japan Governor Ueda said that another rate hike is likely if inflation nears the 2.0% target.
    • Hong Kong's Hang Seng (+0.9%) outperformed with continued support from tech stocks.
    • Reserve Bank of Australia Governor Bullock would not commit to additional rate cuts.
• Major European indices trade in the green. STOXX Europe 600: +0.2%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.5%.
  • In economic data:
    • Eurozone's flash March Manufacturing PMI 48.7 (expected 48.3; last 47.6) and flash Services PMI 50.4 (expected 51.2; last 50.6)
    • Germany's flash March Manufacturing PMI 48.3 (expected 47.1; last 46.5) and flash Services PMI 50.2 (expected 52.3; last 51.1)
    • U.K.'s flash March Manufacturing PMI 44.6 (expected 47.3; last 46.9) and flash Services PMI 53.2 (expected 51.2; last 51.0)
    • France's flash March Manufacturing PMI 48.9 (expected 46.2; last 45.8) and flash Services PMI 46.6 (expected 46.3; last 45.3)
  • In news:
    • European Central Bank policymaker Cipollone said that inflation may return to target sooner than it was previously expected while ECB President Lagarde said that the central bank is ready to adjust rates if inflationary pressures shift.
    • Meanwhile, Bank of England Governor Bailey said that rate cuts remain on the table.