Stock Futures Rise as Tesla and Bitcoin Surge to Start March

Stock futures climbed on Monday, rebounding from a weak February, as investors moved back into high-volatility assets like Tesla and bitcoin, CNBC reports.

The gains came despite concerns over looming US tariffs on key trading partners.

Futures for the Dow Jones Industrial Average rose 144 points (0.3%), while S&P 500 futures gained 0.4%. The Nasdaq-100 futures saw the biggest jump, rising 0.8%.

Tesla shares surged over 3% in premarket trading after Morgan Stanley analyst Adam Jonas expressed optimism about the stock’s recovery, suggesting it could rebound by nearly 50%.

Bitcoin also rallied, climbing 10% to nearly $94,000, following an announcement from President Donald Trump about the creation of a US strategic crypto reserve that will include bitcoin and ether. The move boosted shares of crypto-related companies like Coinbase, Robinhood, and MicroStrategy in premarket trading.

Despite the market’s rally, investors remain cautious about potential US tariffs on Mexico, Canada, and China. Commerce Secretary Howard Lutnick stated on Sunday that the exact tariff rate on Mexico and Canada remains “fluid,” suggesting it could be lower than the proposed 25%. However, he confirmed that an additional 10% duty on Chinese imports will take effect as planned.

Treasury Secretary Scott Bessent added that Mexico may respond by matching US tariffs on China, potentially as a way to avoid US penalties.

Economists are closely watching how these tariffs could impact inflation and economic growth. Some analysts warn that trade restrictions may create headwinds for the market. Chris Rupkey, chief economist at FWDBONDS, noted that “tariffs will be a shock for the economy.”

The rally comes after a difficult February for stocks. The S&P 500 fell 1.4%, while the Dow declined 1.6%. The Nasdaq Composite was hit the hardest, sliding 4%, marking its worst monthly performance since April 2024.

Looking ahead, investors are awaiting key economic reports this week, including the February jobs report on Friday, which could influence future monetary policy decisions.

Individual Stock Moves

• Tesla (+3%): Morgan Stanley named Tesla its top pick in the U.S. auto sector, with expectations of a potential 50% recovery.
• Coinbase (+9%), Robinhood (+6%): Crypto exchange stocks jumped following Trump’s announcement of a U.S. crypto reserve.
• AB InBev (+3%): Deutsche Bank upgraded the beer giant to “buy,” citing strong earnings and cash flow potential.
• Southwest Airlines (-2%): JPMorgan downgraded the stock, citing concerns over profitability.
• Allegro MicroSystems (+15%): The chipmaker gained after reports of takeover interest from ON Semiconductor.