Futures rise as markets shrug from Trump’s latest tariff threat. Steel maker jumps
(Reuters) – US stock index futures checked up on Monday, recovering some losses after the last session. Steelmakers led profits after President Donald Trump said he would impose additional tariffs on steel and aluminum imports.
Trump’s latest trade escalation came on Sunday, saying it would introduce a new 25% tariff on all steel and aluminum imports into the United States, in addition to its existing metal obligations.
US steel jumped 9.7% in pre-market transactions after the Japanese Cabinet Secretary said he was considering proposing a bold change to plans to buy the company.
Stocks in other steelmakers also skyrocketed, with Cleveland Cliff jumping over 12%, while Nucor added nearly 10%. Aluminum producer Alcoa rose 6.2%.
Trump also said he will announce mutual tariffs in all countries on Tuesday or Wednesday.
“The dangerous assets are a bit insensitive to Trump’s tariff announcements,” Jeffries economist said in a memo.
“(Tax) is a volatility-inducing, a negotiation tool, and ultimately not as bad as feared.”
At 04:36 AM ET, the Dow E Minis rose 122 points, 0.27%, the S&P 500 E-MINIS increased 21.5 points (0.36%) and the Nasdaq 100 E-Minis increased 116 points (0.54%).
Most megacups and growth stocks also rose by around 0.6%, with Microsoft and the Metaplatform each.
Dow Component’s revenue from McDonald’s is scheduled for the second half of the day.
Coca-Cola, Doordash, and Cisco, the CVS Health and Computer Networking Equipment manufacturer, are some of the most well-known companies that are scheduled to report results later this week.
All three major indices fell by about 1% each in the last session, and nursing weekly losses after Trump said he was planning to announce mutual tariffs in many countries.
Meanwhile, US Federal Reserve Chair Jerome Powell will testify before Congress on Tuesday and Wednesday. The January consumer price index reading is scheduled to be released early Wednesday, ahead of Powell’s testimony on the same day.
After Friday’s mixed US employment report, expectations for a hold in March in March solidified at an unemployment rate of 4.0%.
Federal Reserve officials said Friday that the U.S. job market is solid, pointing to a lack of clarity about how Trump’s policies will affect economic growth and still high inflation.