US Futures Rise, Dollar Gains After Trump Tariff Threats
Market Highlights:
* US futures edge higher after Monday's sell-off in the artificial intelligence (AI) sector.
* Nasdaq futures gain 0.2% after Chinese AI startup DeepSeek sparked market uncertainty.
* Benchmark European stocks rise 0.2%.
* The Bloomberg Dollar Spot Index climbs 0.5%, buoyed by Trump's proposed tariffs.
* Copper prices fall in response to Trump's import tariff comments.
* 10-year Treasury yield rises two basis points to 4.55%.
Trump's Tariff Threats
US President Donald Trump announced plans to impose tariffs on semiconductors, pharmaceuticals, and metals from abroad. He aims to compel production in the United States. The move has raised concerns about global economic growth and supported the dollar as a safe haven asset.
AI Market Impact
The surge of DeepSeek's AI model challenged the inflated valuations of large tech stocks. Nvidia Corp., a key player in the AI industry, lost 17% in value, wiping out $589 billion. Experts believe this development may have longer-term benefits by providing cheaper AI access, potentially improving efficiency.
Earnings Season Outlook
Investors are awaiting earnings announcements from tech giants like Microsoft Corp. and Apple, hoping to restore confidence in the "Magnificent Seven" group of companies. Despite their record-high stock prices and valuations, analysts expect their profit growth to reach a two-year low during this earnings season.
Other Key Events
* US consumer confidence and durable goods data (Tuesday)
* Federal Reserve rate decision (Wednesday)
* Eurozone ECB rate decision (Thursday)
* US GDP and jobless claims data (Thursday)
* Apple and Deutsche Bank earnings (Thursday)
* Personal income, spending, PCE inflation, and employment cost index (Friday)