US Stock Futures Rise amid Trump's Policy Agenda and Trade Tensions
US stock futures gained traction on Tuesday as investors gauged the potential impact of President Donald Trump's executive orders and the prospect of imminent tariffs on Mexico and Canada.
Market Outlook:
* Dow Jones Industrial Average (YM=F) and S&P 500 (ES=F) futures surged approximately 0.4%.
* Nasdaq 100 (NQ=F) futures advanced by 0.5%, driven by gains in tech giants like Nvidia (NVDA).
Trump's Agenda:
* Investors braced for volatility as President Trump inaugurated his second term with a focus on energy and trade policies.
* The absence of immediate universal tariff hikes provided some market relief.
Trade Tensions:
* Trump's announcement of potential 25% tariffs on Mexico and Canada from February 1st dampened optimism.
* Chinese stocks experienced modest gains, suggesting skepticism about a trade war resolution.
Treasury Yield and Bitcoin:
* The 10-year Treasury yield declined approximately 4 basis points to 4.59%, partially recovering from earlier losses.
* Bitcoin surged to record highs above $109,000 before retreating amid the absence of pro-crypto measures in Trump's initial orders.
Upcoming Earnings:
* Netflix (NFLX) and Charles Schwab (SCHW) are among the companies scheduled to release quarterly earnings results, providing further insight into market sentiment.
Additional Headlines:
* BofA CEO warns of potential Fed intervention due to Trump's policies.
* Apple's iPhone sales in China experienced a sharp 18% decline during the holiday quarter.
* Huawei aims to increase its market share in AI chips by competing with Nvidia in China.