Market Volatility Looms Amid U.S. Tariff Uncertainty and Global Indices Dip

U.S. stock markets faced uncertainty as new tariffs on pharmaceuticals and semiconductors were hinted, overshadowing potential relief in the auto sector. This has resulted in further market volatility. Corporations are cautiously preparing for the financial impact of rapid changes in trade policy, as recent indices trends show potential downtrends.

U.S. stock index futures signaled a lower open on Tuesday due to diminishing optimism regarding tariff relief in the auto sector, compounded by the indication of forthcoming levies on pharmaceutical and semiconductor imports.

The Trump administration's probes into these sectors, as reported in Federal Register filings, suggest new tariffs might be imposed soon. Despite beating first-quarter revenue and profit expectations, shares of Johnson & Johnson fell by 1.3%, with other drugmakers like Pfizer and Eli Lilly also experiencing declines amid choppy trading.

While initial gains were driven by hopes for more tariff cuts following President Trump's comments on potential exemptions for auto imports, investors remain wary due to rapid policy changes. Meanwhile, Bank of America and Citigroup reported higher profits, yet the S&P 500's technical movements hint at long-term downtrends, contributing to global investors reducing U.S. equity exposure amidst uncertainty over tariffs.

(With inputs from agencies.)