Dow, S&P 500, Nasdaq Futures Rally--What's Driving the Turnaround?

March 5 - U.S. stock index futures rebounded on Wednesday morning after recent losses sparked by President Trump's tariff measures, Dow Jones Futures climbed 125 points (0.6%), S&P 500 Futures rose 40 points (0.7%), and Nasdaq 100 Futures advanced 160 points (0.8%).

The rebound comes after major indices tumbled over the past two sessions. The tech-heavy Nasdaq had nearly reached correction territory following the imposition of 25% tariffs on imports from Canada and Mexico, alongside 20% duties on Chinese goods. These aggressive tariffs prompted swift retaliatory actions from the affected nations, further unsettling investors.

U.S. Commerce Secretary Howard Lutnick told Fox Business that President Trump is confident of being able to meet in the middle' with Canada and Mexico on various tariff issues. Rising trade tensions unsettled some about the pace of the economic recovery and the pressure on consumer prices due to US inflation not yet abating -- and this hint at potential negotiations was reassuring.

This article first appeared on GuruFocus .