US Stock Futures Mixed Amidst China-US Trade Concerns
US stock futures traded in a mixed pattern on Tuesday as investors weighed the implications of China's retaliatory tariffs against the US and the potential for an escalating trade war.
Dow Jones Industrial Average (YM=F) futures edged down roughly 0.2%, while S&P 500 (ES=F) futures hovered near the flatline. Nasdaq 100 (NQ=F) futures gained 0.2% following a decline in stock prices on Monday.
China's Response to US Tariffs
China swiftly retaliated after US President Donald Trump imposed additional 10% tariffs on Chinese imports. China imposed tariffs of 15% on US coal and liquified natural gas, effective February 10th, as well as 10% duties on crude oil, farm equipment, and select automobiles.
While the tit-for-tat measures heighten the risk of a trade war, some analysts suggest that China's response exhibits restraint, leaving room for compromise. This is supported by Trump's recent announcement of advancing talks with Chinese President Xi Jinping.
Other Market News
* The US dollar index (DX-Y.NYB) declined slightly, easing market concerns.
* Alphabet's (GOOG, GOOGL) Google faced an antitrust investigation by China, along with PVH (PVH) and Illumina (ILMN) being added to its "unreliable entities list."
* Spotify (SPOT) soared over 9% in pre-market trading after reporting its first full-year profit.
* Palantir (PLTR) surged 18% after exceeding revenue expectations in its first quarter and annual forecasts.
* PepsiCo (PEP) reported earnings that slightly missed consensus estimates, resulting in a 2.5% decline in pre-market trading.