Investing.com-- U.S. stock index futures rose sharply on Monday evening, with Wall Street set to rebound from recent losses after President Donald Trump delayed plans to impose trade tariffs on Canada and Mexico.
Futures surged after Wall Street ended above session lows on Monday, as investors were relieved by Trump agreeing to delay 25% trade tariffs against Canada and Mexico by 30 days. But Trump’s 10% duty on China is still set to take effect from Tuesday.
Investors also remained on edge over trade uncertainty under Trump, given that he has still expressed his intent to impose more trade duties, especially a 10% universal tariff.
S&P 500 Futures rose 0.6% to 6,058.25 points, while Nasdaq 100 Futures rose 0.8% to 21,570.75 points by 18:11 ET (23:11 GMT). Dow Jones Futures rose 0.4% to 44,760.0 points.
Trump delays Canada, Mexico tariffs by 30 days
Canadian President Justin Trudeau said on Monday that Trump had agreed to delay his planned tariffs against the country by 30 days, after a meeting between the two.
The announcement came just hours after Trump said tariffs against Mexico will be delayed by 30 days, following a “very friendly” call with Mexican President Claudia Sheinbaum.
Both countries agreed to Trump’s demands for tighter border controls. His recent tariff threats were driven chiefly by allegations that lax border controls in Canada and Mexico were facilitating the flow of illegal substances- specifically fentanyl- and undocumented immigrants into America.
But Trump’s 10% tariffs against China are still set to take effect from Tuesday. Beijing had largely opposed the duties and vowed retaliation.
Analysts warned that Trump’s tariffs- which will be paid by U.S. importers- could push up inflation and dampen economic growth in the coming months. Sticky inflation is also expected to give the Federal Reserve less impetus to cut interest rates.
Chicago Fed President Austan Goolsbee warned on Monday that uncertainty over Trump’s policies could further delay the central bank’s plans to cut interest rates.
Trump has still signaled his intent to impose higher tariffs against China, as well as a potential 10% duty on all U.S. imports.
Wall St ends above session lows; earnings in focus
Wall Street indexes had fallen sharply on Monday after Trump’s tariff threats, but ended above session lows after the tariffs appeared to be delayed.
U.S. stocks were still nursing losses from the prior week- where an extended rout in technology shares and growing signs of sticky inflation rattled risk appetite.
The S&P 500 fell 0.8% to 5,994.67 points, while the NASDAQ Composite fell 1.2% to 19,391.96 points. The Dow Jones Industrial Average fell 0.3% to 44,422.31 points.
Focus this week is squarely on the December quarter earnings season, with market heavyweights Alphabet Inc (NASDAQ:GOOGL) and Amazon.com Inc (NASDAQ:AMZN) set to report on Tuesday and Thursday, respectively. Prints from other majors including Advanced Micro Devices Inc (NASDAQ:AMD), PayPal Holdings Inc (NASDAQ:PYPL), Super Micro Computer Inc (NASDAQ:SMCI), Walt Disney Company (NYSE:DIS), and Qualcomm Incorporated (NASDAQ:QCOM) are also due in the coming days.
Beyond earnings, focus this week is also on key nonfarm payrolls data for January, due on Friday. The reading is likely to factor into expectations for interest rates.