US Stock Futures, Asia Markets Rise After Chaotic Week: Fund Manager Says Selling Pressure Appears To Be Exhausting

U.S. stock futures were firmly in the positive terrain in the Asian session despite President Donald Trump's and his administration's conflicting signals regarding the tariffs on tech products. 

At last check, the S&P 500 futures traded up about 1.20%, the tech-focused Nasdaq 100 futures rallied 1.70%, and the Dow futures were up a more modest 0.50%.

If the gains carry over into Monday's regular session, it would mark the market's second straight advance.

Back In The Green

On Friday, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) — the exchange-traded funds that track the broader S&P 500 and the Nasdaq 100 indices, ended up 1.78% and 1.84%, respectively. The upside came after the White House said Trump was optimistic that China would come around.

On Friday, China hiked the reciprocal tariffs on imports from the U.S. to 125%, which kicked in on Saturday. It also said it would ignore further escalation in rates by the U.S.

The indices also benefited from the Federal Reserve's readiness to support the market. Boston Fed President Susan Collins reportedly told the Financial Times that the central bank has "tools to address concerns about market functioning or liquidity should they arise" and that "we would absolutely be prepared to do that as needed."

The broader market gauge, the S&P 500 Index, closed the week ended April 11 up 5.7%, snapping a two-week declining streak.

However, the week was marked by volatility amid ongoing tariff uncertainty. By the end of the week, Trump announced a 90-day pause on tariffs and excluded phones, chipmaking equipment, and some computers from his steep reciprocal duties.

The CBOE Volatility Index, aka VIX, ended Friday's session down 7.76% at 37.56 but moved in the 31.90-60.13 range during the week.

Uncertainty Continues

Optimism seen at the start of the new week has come despite the lingering uncertainty over the reciprocal tariffs.

Commerce Secretary Howard Lutnick and President Trump signaled that separate semiconductor tariffs are imminent, stifling relief hopes for the tech sector. 

On Monday, Asian markets rallied across the board, led by Hong Kong's Hang Seng index, but crude oil trended lower as traders grappled with demand concerns.  

Reflecting risk aversion, gold futures held near their record high.

The 10-year U.S. Treasury yield, which topped the 4.50% on Friday, has pulled back. In overnight trading, the yield dipped to 4.464%.

The U.S. dollar was weaker against most major currencies, except the Swiss franc.

Retail Bearish

Retail traders have chosen to overlook the positive futures and opted to remain 'bearish.'

On Stocktwits, sentiment toward the SPY ETF stayed 'bearish' (33/100), although the message volume stayed 'high.'

A retail watcher said that following Lutnick's comments, it is safer to assume the worst.

Another user pointed to the technical weakness in the SPY and QQQ ETFs as well as Tesla, Inc. (TSLA). 

Retail traders also had a 'bearish' reaction toward the QQQ ETF (31/100), accompanied by a 'high' message volume.

Fund manager Louis Navellier is optimistic about the near-term trajectory. "Since the selling in the stock market has been so severe and on high trading volume, it appears that much of the selling pressure is starting to be exhausted," he said in a note on Friday.

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