US STOCKS-Wall St set to open slightly higher after Trump-led rally

By Pranav Kashyap, Johann M Cherian

March 25 (Reuters) - Wall Street's main indexes were prepared to open slightly higher on Tuesday as investors assessed implications of impending reciprocal tariffs on the heels of U.S. President Donald Trump's subtle indication of potential leniency in his trade policy approach.

Trump on Monday, suggested that not all proposed levies would be enforced by April 2, with some countries potentially receiving exemptions—a gesture perceived by Wall Street as a strategic flexibility amid ongoing market turbulence.

The benchmark S&P 500 .SPX and the tech-centric Nasdaq .IXIC reached their highest marks in over two weeks, buoyed by a robust rally in megacap stocks such as Nvidia NVDA.O and Tesla TSLA.O.

However, the looming uncertainty surrounding Trump's tariff strategy weighed on market sentiment. Reports also emerged regarding a potential two-step tariff plan under consideration for next week.

"It is positive (Trump's latest tariff stance) .. but one thing for sure is that volatility will continue. We wouldn't make any major sectoral allocations based on the tariff narrative that is coming from the U.S. until at least April 2," said Lale Akoner, lead global market analyst at eToro.

Tesla shares gained 1.8% in premarket trading, building upon a substantial 12% rally from the previous day.

Despite a general rise in electric vehicle registrations across Europe, data for February revealed a year-on-year contraction in Tesla's market share, marking the second consecutive month of declining sales.

KB Home's KBH.N shares fell 6.8% as the homebuilder cut its full-year 2025 revenue forecast.

At 08:50 a.m. ET, Dow E-minis 1YMcv1 were up 93 points, or 0.22%, S&P 500 E-minis EScv1 were up 16 points, or 0.28% and Nasdaq 100 E-minis NQcv1 were up 53.5 points, or 0.26%.

Restricting stock gains, yields on Treasury notes edged higher, with the 10-year benchmark US10YT=RR reaching a one-month peak. US/

Fed Governor Adriana Kugler said that the central bank's interest rate policy remains restrictive, but progress on bringing inflation back to the central bank's 2% target has slowed.

A cascade of economic indicators is set to be released this week, including the March consumer confidence report due at 10:00 a.m ET on Tuesday.

Forecasts suggest a further decline in consumer sentiment, following February's eight-month low.

The most anticipated release remains Friday's personal consumption expenditures price index, the Fed's preferred inflation gauge. Consensus forecasts predict it will hold steady, yet remain above the Fed's 2% target.

Among others, McCormick & Company MKC.N dropped 3.4% after the food processing company missed estimates on quarterly profit.

CrowdStrike CRWD.O gained 2% after brokerage BTIG raised its rating on the cybersecurity company to "buy" from "neutral", while Ally Financial ALLY.N fell 2.6% as BTIG lowered its rating on the financial services company to "sell" from "neutral".