S&P 500, Nasdaq set to open higher as investors assess Trump's tariff threats
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Ford, GM fall after tariff threats
Wells Fargo gains after report asset cap likely to be lifted
Amgen slips as keenly awaited obesity drug data disappoints
Futures: Dow down 0.31%, S&P 500 up 0.22%, Nasdaq up 0.26%
Updates before market open
By Johann M Cherian and Purvi Agarwal
Nov 26 (Reuters) - The benchmark S&P 500 and the Nasdaq were set to build on recent gains on Tuesday, as investors parsed Donald Trump's tariff pledgeson toptrade partners of the U.S. and awaited minutes from the Federal Reserve's latest meeting.
President-elect Trump 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, raising the risk of trade wars.
At 8:32 a.m. ET, Dow E-minis 1YMcv1 were down 140 points, or 0.31%, S&P 500 E-minis EScv1 were up 13.25 points, or 0.22% and Nasdaq 100 E-minis NQcv1 were up 54.5 points, or 0.26%.
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 2.2% and 4.7%, respectively in premarket trading.
However, some analysts said that the threats might just be used as a negotiating tool.
"At this point it's probably too early to tell. But I don't think it's something that is over and I wouldn't be shocked if we turn the new year and all of a sudden this becomes a big issue," said Joe Saluzzi, co-head of equity trading at Themis Trading.
Yieldson longer-dated Treasurybonds, that had slipped in the previous session following Scott Bessent's selection as incoming Treasury secretary, rose and kept a lid onequities' gains.
The S&P 500 .SPX touched a record high on Monday and logged its sixth-straight session of gains. Investorsalso rotated into small-cap companies, that helped the Russell 2000 index .RUT scale an all-time high, surpassing the previous record hit three years ago.
On Tuesday, futures tracking the Russell RTYcv1 dropped 0.4%.
On the data front, a consumer confidence survey is due at 10:00 a.m. ET and post-noon markets will assess minutes from the central bank's meet earlier this month whichcouldthrow light ontheFed's outlook on interest rate cuts. Top on the radar this week is thepersonal consumption expenditure report due on Wednesday.
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.
Minneapolis Federal Reserve President Neel Kashkari, typically seen ashawkish on monetary policy, said he is open to cutting interest rates again next month.
Traders have recently swayed in placing their bets on the central bank's move in December and currently favor a25-basis point interest rate cut by a 59.4% chance, as per the CME Group's FedWatch Tool.
Among others, Wells Fargo WFC.N gained 1.4% after Reuters reported the bank's $1.95 trillion asset cap couldlikely be lifted next year.
Dow component Amgen AMGN.O lost 11.6% after its experimental obesity drug fell short of expectations. Rival Eli Lilly rose 4.3% after U.S. President Joe Biden was set to propose expanding Medicare and Medicaid coverage for anti-obesity drugs.
Kohl's KSS.N slid 18.6% after forecasting a bigger drop in annual sales than previously expected.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Maju Samuel
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