U.S. futures traded lower on Tuesday morning after China imposed new tariffs on U.S. imports, a retaliatory move against President Donald Trump’s recent tariff measures. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.11%, 0.24%, and 0.18%, respectively, at 3:29 a.m. EST, February 4.
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The market experienced volatility on Monday following Trump’s announcement of new tariffs on goods from China, Mexico, and Canada. The S&P 500, the Nasdaq Composite (NDAQ), and the Dow Jones fell 0.8%, 1.2%, and 0.3%, respectively.
Over the weekend, Trump initiated a tariff war, imposing 25% tariffs on imports from Canada and Mexico, and 10% on Chinese goods. In response, China has announced retaliatory tariffs on U.S. goods, escalating tensions between the two economic giants.
The Chinese government imposed tariffs of up to 15% on U.S. imports of coal and liquefied natural gas, and raised duties by 10% on crude oil, farm equipment, and selected cars, effective February 10. Also, China has initiated an antitrust investigation into Alphabet’s Google (GOOGL).
In major after-market action, Palantir (PLTR) stock surged 23% after it reported strong Q4 results and provided upbeat guidance. Also, NXP Semiconductors (NXPI) gained 2.2% following the release of better-than-expected Q4 results.
Investor attention is now shifting to key economic data releases, including Job Openings and Factory Orders reports for December month. Also, speeches from Federal Reserve officials will be closely monitored for clues about the central bank’s monetary policy outlook.
On the earnings front, several companies, including PayPal (PYPL), Merck (MRK), PepsiCo (PEP), Spotify (SPOT), Alphabet, AMD (AMD), Snap (SNAP), and Amgen (AMGN), are scheduled to report earnings today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.573%. Simultaneously, WTI crude oil futures are trending lower, hovering near $71.72 per barrel as of the last check.
Elsewhere, European indices opened higher on Tuesday morning as investors reacted positively to the U.S. government’s decision to delay tariffs on goods from Canada and Mexico.
Asia-Pacific Markets Traded Higher on Tuesday
Asia-Pacific indices were in the green today as worries about a possible trade war eased after tariffs on Canada and Mexico were postponed for a month.
At the same time, Hong Kong’s Hang Seng Index was up 2.83%. Further, Japan’s Nikkei and Topix indices climbed 0.72% and 0.65%, respectively.
Investors should note that the China market remained closed today for the Lunar New Year holidays.
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