S&P 500 and Nasdaq were set to rebound from a steep Monday sell-off as President Donald Trump pushed the tariff deadline once again and signaled flexibility on that timing as well with countries willing to negotiate.

Market Snapshot

At 8:16 a.m. ET, Dow Jones Industrial Average futures fell 39 points. S&P 500 futures gained 0.1%, while Nasdaq-100 futures advanced 0.3%. SoundHound AI Inc rose 5%; Alibaba rose 2%.

Pre-Market Movers

Tesla was up 1.1% in premarket trading after the stock fell 6.8% on Monday. CEO Elon Musk announced over the weekend he would be forming a new political party and his foray again into politics had investors selling shares of the electric-vehicle maker. Musk was strongly opposed to Trump's tax-and-spending bill that was signed into law Friday. The legislation removes purchase tax credits worth up to $7,500 for qualifying EVs. Tesla shares, coming into Tuesday, have declined 27% this year.

Wolfspeed Inc. shares rose 50% after Monday’s 96% surge as the chipmaker named Gregor van Issum as CFO, effective Sept. 1. A veteran of ams-OSRAM and NXP, van Issum replaces interim CFO Kevin Speirits, who will remain for the transition. The move follows the May appointment of COO David Emerson, as Wolfspeed seeks a turnaround in profitability and growth in silicon carbide tech for EVs and AI data centers.

Amazon.com rose 0.3% in premarket trading. The company's members-only, four-day Prime Day sales event has begun and runs through July 11. For the first time since its inception a decade ago, the event is scheduled to run for four days across 20 countries, instead of the typical two days. Justin Post, an analyst at BofA Securities, said Prime Day could generate more than $21 billion in gross merchandise value, up 60% from last year.

Exxon Mobil declined 0.4% after the energy giant warned that second-quarter earnings could take a hit of $800,000 to $1.2 billion from lower crude prices and $300,000 to $700,000 from lower gas prices.

Sunrun fell 7%, Enphase Energy was down 3.4%, and First Solar declined 2.6% after the White House said it would "rapidly eliminate the market distortions and costs imposed on taxpayers by so-called 'green' energy subsidies." Meanwhile, Sunrun was upgraded to Sector Weight from Underweight at KeyBanc, while Enphase Energy was downgraded to Hold from Buy at TD Cowen.

Datadog was falling 2.2% after shares of the software maker were downgraded to Sell from Neutral at Guggenheim with a price target on the stock of $105. The analysts said they made the call "ahead of potential significant optimization by OpenAI, which we believe is Datadog's largest customer." Guggenheim said its "tactical positioning is based on our belief that OpenAI's observability software roadmap is shifting towards more cost efficient, in-house managed technologies, and our model setup that indicates 2H risk."

Nvidia shares gained 0.7%. The maker of artificial-intelligence chips declined 0.7% on Monday and ended the session with a market capitalization of $3.861 trillion.

Uber Technologies was up 0.3% in premarket trading. The ride-share company closed at a record high of $96.68, rising 3.3% in the session. Analysts at Wells Fargo on Monday maintained their Overweight rating on the stock and raised their price target to $120 from $100. Uber has risen 60% this year, according to Dow Jones Market Data.

Market News

China Issues Warning to Trump over Tariffs, Vows Countermeasures Targeting Key US Supply Chains

China on Tuesday warned the Donald Trump administration against reigniting trade tensions by reinstating tariffs on its goods from August, and threatened to retaliate against nations that strike deals with the United States to exclude China from their supply chains.

「One conclusion is abundantly clear: dialogue and cooperation are the only correct path,」 the official People’s Daily said in a commentary, referring to the exchanges in the current round of China-U.S. trade tension.

Uber Is Expected to See a Modest Tailwind from the No Tax on Tips Provision

Uber is seen benefiting from the No Tax on Tips provision of the Big Beautiful Bill passed by Congress last week. Bank of America noted that the tax benefit could provide a modest tailwind to driver supply, which would indirectly support take rates for Uber.

Analyst Justin Post crunched the numbers: "We expect US Uber drivers to earn ~$42bn this year. If we assume 7% avg. tip on US GBs of $88bn for 2025E, we get to $5.7bn in US Tips this year (14% of driver earnings). This translates to ~$1.0bn in tax savings for drivers, assuming an 18% avg. tax rate, for a 2.5% pay bump."

IBM Rolls Out New Chips and Servers, Aims for Simplified AI

IBM on Tuesday announced a new line of data center chips and servers that it says will be more power-efficient than rivals and will simplify the process of rolling out artificial intelligence in business operations.

IBM introduced its new Power11 chips on Tuesday, marking its first major update to its "Power" line of chips since 2020.