Investing.com-- U.S. stock index futures fell on Monday evening as investors remained on edge and uncertain over the prospect of more exemptions from President Donald Trump’s trade tariffs.
Futures retreated following two straight days of gains on Wall Street, as investors cheered Trump removing smartphones and other electronics from his steep tariffs against China.
Trump on Monday suggested that he might even grant exemptions to automobiles. But the President’s constantly shifting stance sparked some uncertainty over U.S. economic policy under his administration, undermining risk appetite.
S&P 500 Futures fell 0.3% to 5,422.75 points, while Nasdaq 100 Futures fell 0.4% to 18,854.25 points by 19:18 ET (23:18 GMT). Dow Jones Futures fell 0.3% to 40,639.0 points.
Trading volumes are expected to dwindle this week, before the Good Friday holiday.
Wall St logs 2 days of gains, but tariff uncertainty persists
Wall Street clocked two straight days of gains as investors cheered some exemptions from Trump’s rapidly escalating trade war with China. A measure of bargain buying also aided markets after sharp losses over the past few weeks.
The S&P 500 rose 0.8% to 5,405.97 points, while the NASDAQ Composite rose 0.6% to 16,831.48 points on Monday. The Dow Jones Industrial Average rose 0.8% to 40,524.79 points.
But recent comments from Trump suggested that his exemptions of electronics will be temporary, and that the President was gearing up to announce separate tariffs on electronics in the coming days.
Trump’s constant flip-flopping on his tariff plans brewed uncertainty over the U.S. economic outlook, and also shook investor faith in U.S. assets. The dollar slid to three-year lows amid the tariff uncertainty, while Treasuries were sold off en masse.
Investors were also on edge over the economic impact of a bitter trade war with China, after both Washington and Beijing imposed steep tariffs on each other last week. Trump slapped China with a cumulative 145% tariff, against which Beijing retaliated with a 125% levy on U.S. goods.
Q1 earnings, Fedspeak on tap
Wall Street was also supported by a swathe of positive first-quarter bank earnings, which pointed to resilience in corporate earnings despite growing economic headwinds.
More Q1 earnings are due in the coming days, with Johnson & Johnson (NYSE: JNJ ), Bank of America Corp (NYSE: BAC ), Citigroup Inc (NYSE: C ), and United Airlines Holdings Inc (NASDAQ: UAL ) set to report on Tuesday.
Several Federal Reserve officials are also set to speak this week, most notably Chair Jerome Powell on Wednesday. Focus is squarely on the central bank’s plans for interest rates amid heightened uncertainty over Trump’s tariffs and a potential U.S. recession.