Stock futures rise as investors await Trump's tariffs on imports from Canada, Mexico, and China

Shares of Elon Musk's Tesla (TSLA) surged over 3% in premarket trading on Monday after Morgan Stanley analyst Adam Jonas restored the stock as a “Top Pick” in U.S. autos.

Stock futures rose slightly on Monday as investors awaited President Donald Trump’s tariffs on imports from Canada, Mexico, and China, set to take effect on Tuesday. S&P 500 futures rose 0.4%, while Nasdaq futures gained 0.7%. Futures tied to the Dow Jones Industrial Average climbed 0.3%.

Investors will also keep an eye on the latest developments regarding a U.S. trade deal with Japan, which Trump said on Sunday was “almost complete.”

Tariffs on $270 billion worth of goods from China are set to increase from 10% to 15% on Tuesday, while tariffs on $112 billion worth of goods, mainly food and seafood, from Canada and Mexico are set to take effect at the same time.

However, Trump also said on Sunday that he might delay the tariffs on Chinese goods once again, adding that he would prefer to reach a trade deal with China “the sooner the better.”

The new tariffs are part of Trump’s administration’s ongoing trade dispute with China, which began in early 2018. The two countries have imposed tariffs on billions of dollars worth of each other’s goods.

The trade war has had a significant impact on the global economy, slowing economic growth and disrupting supply chains. Investors have been hoping for a resolution to the trade dispute, but negotiations have stalled in recent months.

In other news, shares of Elon Musk’s Tesla (TSLA) surged more than 3% in premarket trading on Monday after Morgan Stanley analyst Adam Jonas restored the stock as a “Top Pick” in U.S. autos. His price target of $430 per share suggests a potential upside of more than 50% from Tesla’s current share price.

Meanwhile, shares of Broadcom (AVGO) climbed over 2% in early trading as the semiconductor manufacturer prepares to report earnings after Thursday’s closing bell.

Kroger’s (KR) stock fell more than 2.5% in early trading on Monday as CEO Rodney McMullen resigned following an investigation into his personal conduct. The news comes just ahead of the grocery chain’s earnings release on Thursday.

Finally, cryptocurrency-related companies and Bitcoin holders, including Coinbase (COIN), Strategy (MSTR), and Robinhood (HOOD), surged in premarket trading on Monday following Trump’s announcement of a strategic crypto reserve encompassing Bitcoin and other cryptocurrencies.

Before the market opened, Coinbase jumped 9.5%, MicroStrategy soared 12.6%, and Robinhood gained 7.5%.