Futures muted as investors weigh Trump's tariff threats
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures tracking Dow, S&P 500 and Nasdaq flat
Nov 26 (Reuters) -U.S. stock index futures were flat on Tuesday, as investors paused following several sessions of gains and weighed the implications Donald Trump's tariffs on top trade partners could have on the local economy.
The president-elect said he would impose a 25% conditional tariff on Canadian and Mexican imports that could violate a free-trade deal he negotiated during his previous term. He also outlined "an additional 10% tariff, above any additional tariffs" on imports from China.
At 5:10 a.m. ET, Dow E-minis 1YMcv1 were up 1 point, or were flat, S&P 500 E-minis EScv1 were up 0.75 points, or 0.01% and Nasdaq 100 E-minis NQcv1 were up 10 points, or 0.05%.
Automakers such as Ford F.N and General Motors GM.N -that have highly integrated supply chains across Mexico, the U.S. and Canada - lost 1.5% and 2.2%, respectively in premarket trading.
"New tariffs from the U.S. could intensify the global trade frictions and may impact the economic growth prospects in the longer term," strategists at ING bank said.
Yields on Treasury bonds that had slipped in the previous session following Scott Bessent's selection as incoming Treasury secretary, rose and pressured riskier equities.
The benchmark S&P 500 .SPX touched a record high on Monday and logged its sixth-straight session of gains and a drop in yields lifted rate-sensitive sectors such as real estate .SPLRCR and regional banks .KRX.
Investors also rotated into small-cap companies, that helped the Russell 2000 index .RUT scale an all-time high on Monday, surpassing the previous record hit three years ago. On Tuesday, futures tracking the Russell RTYcv1 dropped 0.5%.
On the data front, the Conference Board's survey on consumer confidence is due at 10:00 a.m. ET and post-noon markets will assess minutes from the central bank's meet earlier this month. However, top on the radar this week is the personal consumption expenditure report due on Wednesday.
Minneapolis Federal Reserve President Neel Kashkari, typically on the hawkish end of the U.S. central bank's policy spectrum, said he is open to cutting interest rates again next month.
Analysts say Trump's trade and fiscal policies, though seen as a positive for companies and economic growth, could stoke inflation pressures and slowdown the Fed's monetary policy easing cycle.
Traders have recently swayed in placing their bets on the central bank's move in December. The probability for a 25-basis point interest rate cut currently stands at 55.9%, As per the CME Group's FedWatch Tool.
Among others, Zoom Video Communications ZM.O lost 7%%. The company raised its forecast for fiscal 2025 revenue and adjusted profit.
Poseida Therapeutics' shares PSTX.O more than tripled in value after Switzerland's Roche ROG.S said it will acquire the cell therapy maker in a cash deal worth up to $1.5 billion.
Investors also monitored talks of a ceasefire between Israel and Lebanon, while tensions remained high between Ukraine and Russia. Oil prices, the most sensitive to geopolitical tensions in the two regions, edged higher after Monday's drop.
Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
