US STOCKS-Wall Street braces for more losses as Trump tariffs loom

By Sruthi Shankar and Pranav Kashyap

April 1 (Reuters) - U.S. stock indexes were on track to open lower on Tuesday, marking a gloomy start to the quarter, as investors braced for the impending storm of sweeping tariff announcements from the Trump administration.

President Donald Trump is set to unveil "reciprocal tariffs", aligning U.S. duties with those of other nations on April 2. He said on Sunday the levies will include all countries but specific details were scant.

The specter of economic disruption from the tariffs coupled with aggressive AI investments by tech firms left Wall Street reeling in the first quarter. The benchmark S&P 500 .SPX closed the quarter 4.6% lower, marking its most dismal three-month stretch since July 2022.

Futures dipped on Tuesday after the Washington Post reported White House aides have drafted a proposal to impose tariffs of around 20% on most imports to the United States.

The formal announcement is slated for 3 pm ET on Wednesday, U.S. Treasury Secretary Scott Bessent told Fox News on Monday.

"Investors are on the sidelines because it's impossible to get any kind of clear compass reading on the direction of the economy until these tariffs are finalized," said Peter Andersen, founder of Andersen Capital Management.

"The market is going to sway back and forth, but with a bias to the negative side, because this is making it very difficult for CEOs of companies to make any kind of estimates."

Manufacturing activity surveys for March and the JOLTS job openings report later today could provide insights into the ripple effects from the tariffs on the U.S. economy and the Federal Reserve's trajectory on monetary policy.

By 8:17 a.m. ET, S&P 500 E-minis EScv1 fell 21.25 points, or 0.38%. Nasdaq 100 E-minis NQcv1 dropped 62 points, or 0.32%, and Dow E-minis 1YMcv1 were down 215 points, or 0.51%.

Investors have sought refuge in U.S. government bonds and gold while dumping domestic equities, especially the high-flying tech stocks, amid fears tariffs could stifle economic expansion and ignite inflationary pressures.

Trump has already implemented levies on imported aluminum and steel, along with increased tariffs on goods from China. Higher duties on cars will take effect on Thursday.

Goldman Sachs on Monday raised the probability of a U.S. recession to 35% from 20% and said it expects more U.S. interest rate cuts this year.

Among single stocks, Johnson & Johnson JNJ.N fell 3.7% premarket after a U.S. bankruptcy judge rejected the company's $10 billion proposal to end tens of thousands of lawsuits alleging its baby powder and other talc products cause ovarian cancer.

Conservative news outlet Newsmax NMAX.N jumped 25% following a more than 700% surge in its NYSE debut on Monday.

PVH Corp PVH.N jumped about 16% after the apparel maker's annual earnings forecast beat analysts' estimates.

Tesla's shares TSLA.O gained 1.5% ahead of its first-quarter vehicle deliveries report on Wednesday. Its shares fell about 36% in the three months to March 31.

The electric carmaker posted its lowest first-quarterly sales figures in France and Sweden since 2021, data showed.