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US stock futures struggle as trade tensions mount
Global markets fluctuate as US-China trade tensions escalate, with investors eyeing key economic data and corporate earnings.
S&P 500 futures and European equities lack clear direction amid tariff concerns and mixed corporate earnings.
The dollar weakens, bond yields climb, and commodities face pressure, with crude oil sliding and gold holding near record highs.
Investors eye earnings from Alphabet and Amazon, alongside key US economic data.
Global markets showed tentative stability after the US granted a 30-day tariff reprieve to Mexico and Canada, following agreements on fentanyl trafficking and border security. However, trade frictions remain at the forefront, with Washington pressing ahead with a 10% levy on all Chinese imports. Beijing swiftly retaliated, slapping a 15% tariff on US coal and liquefied natural gas, along with a 10% duty on crude oil, farm equipment, and select automobiles—set to take effect on February 10.
The dispute threatens to escalate further. President Donald Trump signaled that additional tariffs on China could be forthcoming unless Beijing takes stronger action to curb fentanyl exports. Meanwhile, tensions with the European Union are also brewing. Over the weekend, Trump hinted that European imports could be next in line for scrutiny, prompting EU leaders to discuss countermeasures at a summit in Brussels while leaving the door open for negotiations.
Markets struggled for traction as traders weighed the economic impact of tariffs and sifted through the latest earnings reports. The S&P 500 and European equities were little changed, while the dollar weakened 0.2% amid cautious optimism that the worst-case trade scenarios might be avoided. Treasury yields edged higher.
Corporate earnings offered little clarity. Palantir Technologies Inc. surged as much as 20% in US premarket trading after the software firm issued an upbeat forecast, citing robust demand for its AI-driven products. Investors are now focused on upcoming results from Alphabet Inc. and Amazon.com Inc., alongside key economic releases including US factory orders and durable goods data.
In commodities, crude oil extended its decline as demand concerns deepened, while gold hovered near an all-time high, reflecting broader market uncertainty.
