Stock futures showed little change on Tuesday night as investors closely monitored the latest updates regarding tariffs from President Donald Trump. Futures linked to the Dow Jones Industrial Average experienced a slight dip, falling by 52 points, which is equivalent to a 0.1% decrease. Meanwhile, S&P 500 futures declined by less than 0.1%, and Nasdaq 100 futures were also marginally lower, indicating a cautious approach from traders.
During the regular trading session on Tuesday, investors remained vigilant as Trump unveiled new updates concerning his tariff policy. The S&P 500 index experienced a minor decline of 0.07%, while the tech-heavy Nasdaq Composite managed to gain a slight 0.03%. Conversely, the 30-stock Dow faced a greater setback, losing nearly 0.4%.
Global stock markets showed signs of resilience, with indices such as the Nikkei 225 in Japan, Kospi in South Korea, and Europe's Stoxx 600 index recording modest gains. This positive movement came just one day after Trump announced significant tariffs affecting 14 countries, including Japan and South Korea. In a post on Truth Social, Trump confirmed that there would be no alterations or extensions to the previously announced duties, which are set to take effect on August 1.
The new tariff rates range between 25% and 40%, adding further pressure to international trade relationships. Additionally, Trump announced a striking 50% levy on copper imports, hinting at the possibility of more sector-specific tariffs being introduced soon. In a bold move, he threatened to impose tariffs as high as 200% on pharmaceuticals imported into the U.S., although he indicated that there would be a grace period of about one to one and a half years before these duties would take effect.
The recent tariff announcements serve as a stark reminder that the stock markets are still navigating through turbulent waters. Scott Helfstein, the Global X head of investment strategy, noted that the White House has yet to achieve its trade goals, which could lead to ongoing market volatility. Investors are advised to remain cautious as the situation develops.
In addition to keeping an eye on upcoming tariff policy changes, traders will also be focusing on the release of the Federal Open Market Committee's minutes from its last meeting, which could provide further insights into future market directions.
