Dow Jones futures rose modestly early Wednesday, along with S&P 500 futures and Nasdaq futures. President Donald Trump addressed Congress Tuesday night as Trump tariffs ramp up. A top Trump official said Mexico and Canada tariffs could be rolled back quickly.
CrowdStrike headlined earnings reports after the close.
The stock market correction saw huge swings Tuesday, with the major indexes ultimately falling yet again.
Nvidia, Super Micro Computer bounced, but those stocks and other AI hardware plays are heavily damaged.
Investors should remain defensive for now.
The video embedded in this article discusses Tuesday's market action and analyzes Stride, Life Time Group and Netflix.
Dow Jones Futures Today
Dow Jones futures rose a fraction vs. fair value. S&P 500 futures gained 0.1%. Nasdaq 100 futures climbed 0.3%, with Nvidia and Supermicro stock rising. Futures are off overnight highs.
Futures rose late Tuesday after Commerce Secretary Howard Lutnick said that President Trump may roll back tariffs on Mexico and Canada as soon as Wednesday. Early Wednesday, Lutnick said he expects a Canada and Mexico trade announcement today, perhaps focused on autos. He also said the reciprocal tariffs may be phased in over months.
The ADP employment report, released at 8:15 a.m. ET, said private companies added 77,000 jobs in February, roughly half of estimates.
The 10-year Treasury yield rose to 4.24%.
Crude oil fell more than 1%.
Copper futures surged nearly 5% as President Trump reiterated plans to hike tariffs on key metals.
Bitcoin rebounded back to nearly $90,000.
China stocks rose after the government set a 5% GDP growth target for 2025, planning on more deficit spending to boost domestic demand amid a new Trump trade war.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Trump Speech To Congress
"Among my very highest priorities is to rescue our economy," President Trump told Congress.
The president praised Elon Musk's DOGE efforts to control spending and said he won't give chipmakers any money from the CHIPS Act.
Trump tariffs were front and center.
"Whatever they tariff us, we tariff them," Trump said. "Whatever they tax us, we tax them. ...We will take in trillions of dollars and create jobs like we have never seen before."
However, he conceded that tariffs will cause a "little disturbance, and we're OK with that."
On Tuesday, the U.S. imposed 25% tariffs on Canada and Mexico, with a further 10% tariff hike on China. Trump had confirmed those moves Monday. Those are the first wave of major Trump tariffs looming over the next month, with "reciprocal" tariffs and duties on copper and other key commodities among them.
Will Trump roll back the tariffs on Canada and Mexico quickly, as Lutnick suggested? The president didn't give any such signals before Congress.
Key Earnings
CrowdStrike, Credo Tech Group and Box headlined earnings reports after the close.
CRWD stock sold off in extended action as CrowdStrike topped views but gave mixed guidance. The cybersecurity firm is set to tumble back below the 50-day line and a 389 buy point.
CRDO stock fell modestly early Wednesday even though Credo Tech earnings and revenue topped. Shares are still well below the 50-day line.
Box earnings were in line while guidance was light, sending shares tumbling in extended trade. Box stock had been setting up a 35.45 cup-with-handle buy point.
Stock Market
The stock market suffered sharp losses Tuesday morning, roared back to mostly higher before turning lower once again in the final half hour.
The Dow Jones Industrial Average slumped 1.55% in Tuesday's stock market trading. The S&P 500 index sank 1.2%, not far from its 200-day line. The Nasdaq composite, after huge swings from negative to positive, finished down 0.35%, unable to reclaim its 200-day moving average. The small-cap Russell 2000 lost 1.1%, hitting its worst levels in nearly seven months.
Some defensive areas such as medical, fast food and insurance are holding up well, with some in buy zones.
U.S. crude oil prices dipped 0.2% to $68.26 a barrel.
The 10-year Treasury yield rose three basis points to 4.21%, reversing from an intraday low of 4.11%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF sank 0.6% The iShares Expanded Tech-Software Sector ETF dipped 0.2%, with CrowdStrike stock and Box both components. The VanEck Vectors Semiconductor ETF gained 1%. Nvidia stock is the dominant member of SMH.
ARK Innovation ETF edged up 0.15% and ARK Genomics ETF bounced 1.7%.
SPDR S&P Metals & Mining ETF retreated 1.2%. The Energy Select SPDR ETF shed 1% and the Health Care Select Sector SPDR Fund sank 0.9%.
The Industrial Select Sector SPDR Fund declined 1.95% and the Financial Select SPDR ETF tumbled 3.5%.
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Nvidia Stock, Supermicro Stock
Nvidia stock rose 1.7% on Tuesday, rebounding intraday from its worst levels in nearly six months. But that's after plunging 8.7% on Monday
Supermicro stock rebounded 8.5%, rallying off the 50-day line. But that's after a 29.4% crash over the prior three sessions for the AI server maker and Nvidia partner. SMCI stock is still below its 200-day line.
What To Do Now
The stock market is in a correction, with the major indexes and leading stocks heavily damaged. Tuesday showed why investors should get excited about an intraday rally. Investors may want to use a market bounce to exit positions that they failed to cut earlier.
Some defensive names are doing well, but they might struggle if the broader market breaks down or a risk-on sentiment returns.
At some point there will be a clear market uptrend. You want to be ready. Build up your watchlists. Look for stocks with strong relative strength.
Stay engaged, but remain patient. In a bad market, the key is to not lose money.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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