Dow Set to Open Up as Trump Renews Tariff Threats
Stock futures were falling Tuesday as investors struggled to make up their minds about what escalating trade tensions would mean for markets.
U.S. President Donald Trump said Monday that levies on imports from Canada and Mexico would proceed on schedule. His administration is also planning to beef up restrictions on semiconductor sales to China, Bloomberg reported Tuesday, citing people familiar with the matter.
The market is yet to decide if Trump’s tariff threats are a negotiating ploy or a sign that current tensions will escalate into a full-blown trade war. “Thus far, Trump’s ‘bark’ has been worse than his ‘bite,’ though assuming that stance will hold water for the next four years might well prove folly,” Pepperstone strategist Michael Brown wrote Tuesday.
Tariffs aren’t the only issue making investors anxious. Chip maker Nvidia is set to report its quarterly earnings on Wednesday amid worries about a slowdown in spending on artificial intelligence, and the release of the Federal Reserve’s preferred inflation gauge Friday could determine whether the central bank has scope to cut interest rates at all this year.
Stocks were falling Tuesday in a reflection of the tense mood. Futures tracking the Dow Jones Industrial Average fell 55 points, or 0.1%. S&P 500 futures were down 0.3%, while Nasdaq 100 futures fell 0.4%.
Bond yields continued to retreat, with the yield on the benchmark 10-year U.S. Treasury note down 6 basis points to 4.352% in early trading. The WSJ Dollar Index, which tracks the greenback against 16 foreign currencies, was flat.