U.S. stock futures showed mixed signals on Tuesday as President Donald Trump’s latest trade shifts raised concerns about economic growth. The uncertainty over tariffs and stricter China policies left investors wary about market optimism and the potential for interest rate cuts.
Contracts on the Nasdaq 100 dropped by 0.2%, following a tech-led selloff the previous day. Meanwhile, S&P 500 futures remained mostly unchanged. Dow Jones Industrial Average futures saw a slight dip of 0.1%. These movements came after Trump revived concerns about his ongoing trade policies.
Trump’s recent remarks about continuing tariffs on Mexico and Canada next week unsettled markets. Investors are also analyzing his administration’s push for stricter regulations on chip exports to China. These actions have prompted worries about the broader economic impact.
The yield on the benchmark 10-year Treasury bond fell to its lowest level this year, just below 4.4%. Investors now expect that higher tariffs will likely harm U.S. growth. As a result, market players adjusted their expectations, increasing bets on potential interest rate cuts.
In the tech sector, shares of Nvidia dipped in pre-market trading as chip-related stocks experienced a pullback due to the latest trade tensions. Other companies like ASML, STMicro, AMD, Broadcom, and Lam Research also saw their shares fluctuate around the flatline.
The focus is now on Nvidia’s upcoming earnings report, which is expected to come under pressure from both tariffs and export restrictions. Meanwhile, Home Depot reported better-than-expected fourth-quarter revenue, easing some investor concerns.
On Tuesday morning, Wall Street also awaited fresh U.S. consumer confidence data. Last week, weak consumer sentiment and inflation expectations contributed to a sharp decline in stock prices.
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