TLDR
- Stock futures traded higher Tuesday after Trump delayed reciprocal tariffs to August 1 from July 9
- Tesla rose 1.1% in premarket after falling 6.8% Monday following Elon Musk’s political party announcement
- Amazon gained 0.4% as Prime Day sales event expanded to four days across 20 countries for first time
- Solar stocks declined after White House said it would eliminate green energy subsidies
- Nvidia gained 0.8% while Uber hit record high with analysts raising price target to $120
Stock futures moved higher Tuesday morning after President Donald Trump pushed back the implementation date for his reciprocal tariffs. The new deadline of August 1 replaced the original July 9 date, providing markets with temporary relief.
Equities had tumbled Monday following Trump’s posting of letters to 14 global trading partners. The letters outlined tariff rates these countries would face if they failed to strike new trade deals. Japan and South Korea were among the nations targeted in the correspondence.
Tesla shares rebounded 1.1% in premarket trading after suffering a 6.8% decline Monday. The electric vehicle maker faced selling pressure following CEO Elon Musk’s weekend announcement about forming a new political party. Musk’s return to politics created uncertainty among investors about his focus on the company.
The Tesla CEO had strongly opposed Trump’s tax-and-spending bill that became law Friday. The legislation eliminates purchase tax credits worth up to $7,500 for qualifying electric vehicles. Tesla shares have declined 27% this year coming into Tuesday’s trading session.
Amazon.com rose 0.4% in premarket trading as the company launched its expanded Prime Day sales event. The four-day event runs through July 11 across 20 countries. This marks the first time since the event’s inception a decade ago that it extends beyond the typical two-day format.
BofA Securities analyst Justin Post projected Prime Day could generate more than $21 billion in gross merchandise value. This would represent a 60% increase from last year’s event. The extended duration and broader geographic reach support the optimistic projections.
Energy and Solar Stocks Face Headwinds
Exxon Mobil declined 0.4% after warning about second-quarter earnings pressure. The energy giant expects a hit of $800,000 to $1.2 billion from lower crude prices. Lower gas prices could impact earnings by another $300,000 to $700,000.
Solar stocks faced selling pressure after White House statements about eliminating green energy subsidies. The administration said it would “rapidly eliminate the market distortions and costs imposed on taxpayers by so-called ‘green’ energy subsidies.” Sunrun fell 5.3%, Enphase Energy dropped 4.2%, and First Solar declined 2.2%.
Technology Stocks Show Mixed Performance
Nvidia shares gained 0.8% in premarket trading after declining 0.7% Monday. The artificial intelligence chip maker ended Monday’s session with a market capitalization of $3.861 trillion. The company remains a key player in the AI infrastructure buildout.
Uber Technologies rose 0.5% in premarket trading following Monday’s record high close. The ride-share company closed at $96.68, rising 3.3% in the session. Wells Fargo analysts maintained their Overweight rating and raised their price target to $120 from $100.
Merit Medical Systems provided upbeat second-quarter revenue guidance of $380 million to $384 million. This exceeded analyst forecasts of $372.5 million. The company also named Martha Aronson as CEO and president to succeed founder Fred Lampropoulos.
Trump’s tariff delay provided markets with breathing room as investors assess trade policy impacts on various sectors.
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