US Stock Futures Dip as Trade War Concerns Mount
US stock futures declined on Tuesday amidst escalating trade tensions between the US and China. Investors expressed concern over the potential impact of a prolonged trade war on the global economy.
Market Reaction
* Dow Jones Industrial Average (YM=F) futures edged down 0.2%
* S&P 500 (ES=F) futures fell approximately 0.2%
* Nasdaq 100 (NQ=F) futures remained largely flat
China's Retaliation
Beijing swiftly responded to President Trump's imposition of additional tariffs on Chinese imports by implementing retaliatory measures. China imposed 15% tariffs on US coal and liquefied natural gas, and 10% duties on crude oil, farm equipment, and certain automobiles.
Market Optimism
Despite the trade tensions, some analysts see indications of restraint in China's response, leaving room for compromise. Additionally, President Trump has announced accelerated talks with Chinese President Xi, raising hopes for a resolution.
Google's Antitrust Investigation
China's antitrust authorities have initiated an investigation into Alphabet's Google. The company's shares remained relatively stable in pre-market trading ahead of its quarterly earnings report.
Earnings Season
A significant week of earnings reports is underway, with Spotify (SPOT), PayPal (PYPL), AMD (AMD), and Chipotle (CMG) reporting on Tuesday. S&P 500 companies are expected to outpace last year's fourth-quarter earnings growth.
Palantir's Impressive Results
Palantir (PLTR) exceeded expectations with its first-quarter and annual revenue forecasts, resulting in an 18% surge in its shares.
Gold's Surge
Gold prices approached a record high due to heightened demand for safe assets amid uncertainty over the trade war. The US dollar weakened after President Trump's announcement to pause tariffs on Canada and Mexico.