(Bloomberg) — S&P 500 futures dropped after a two-day advance as traders weighed escalating China-US trade tensions against signs the Trump administration may add more tariff exemptions.
Contracts on the S&P 500 and the Nasdaq 100 were about 0.3% lower. Boeing Co. sank 4% in premarket trading after China ordered airlines not to take any further deliveries of the company’s jets. In Europe, stocks pushed higher after President Donald Trump floated a pause in auto tariffs.
Tuesday’s market moves were milder than the big swings of late, reflecting hopes that there may be room for negotiations over Trump’s reciprocal levies. Investors were also watching the early stages of the earnings season, with Bank of America Corp. and Citigroup Inc. surpassing expectations.
“The overall market mood is set on de-escalation,” said David Kruk, head of trading at La Financiere de L’Echiquier. “We got caught out last week with Trump’s reversal of fortunes, and this weekend as well, so we’re waiting before reacting now.”
Meanwhile, 10-year Treasury yields were steady. A gauge of the dollar was little changed after a five-day losing streak.
Still, there was plenty of evidence that investor nervousness about the trade war. A Bank of America survey showed that sentiment toward the economy is the most negative in three decades.
Traders were also assessing news that the US is pressing forward with plans to impose tariffs on semiconductor and pharmaceutical imports by initiating trade probes led by the Commerce Department.
On the earnings front, Citigroup edged higher in premarket after revenue at its trading division beat estimates. Bank of America shares rose after its stock traders posted a record quarter, as the company reaped the benefits of volatile markets.
Some of the main moves in markets:
Stocks
-
S&P 500 futures fell 0.3% as of 8:35 a.m. New York time
-
Nasdaq 100 futures fell 0.3%
-
Futures on the Dow Jones Industrial Average fell 0.4%
-
The Stoxx Europe 600 rose 0.8%
-
The MSCI World Index rose 0.2%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro fell 0.2% to $1.1333
-
The British pound rose 0.3% to $1.3235
-
The Japanese yen rose 0.3% to 142.70 per dollar
Cryptocurrencies
Bonds
-
The yield on 10-year Treasuries was little changed at 4.38%
-
Germany’s 10-year yield advanced two basis points to 2.53%
-
Britain’s 10-year yield was little changed at 4.66%
Commodities
-
West Texas Intermediate crude fell 1% to $60.91 a barrel
-
Spot gold rose 0.2% to $3,218.85 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy and Michael Msika.
©2025 Bloomberg L.P.
Shared by Golden State Mint on GoldenStateMint.com
