July 14 – U.S. index futures slipped Monday as President Donald Trump unveiled fresh levies on key trading partners, dimming early-week market sentiment.
S&P 500 futures inched down about 0.4%, while Nasdaq 100 futures and Dow futures each fell roughly 0.3%. Traders also digested a slight uptick in Treasury yields: the 10?year note rose one basis point to 4.43%, while the 2?year held near 3.90%.
Trump declared imports from the European Union and Mexico will face a 30% tariff starting Aug. 1 unless new trade terms are reached. The relocate follows last week’s 35% levy on Canadian goods, fueling concerns about consumer price pressures.
With risk markets near highs and bond yields steady, these tariffs could trigger larger relocates in thin holiday trading, declared Deutsche Bank’s Jim Reid ahead of potential August actions.
Investors are gearing up for a heavy calfinishar this week, with June’s consumer price index due Tuesday and wholesale inflation data on Wednesday. Reid noted that traders will watch for early signs of tariff?driven price modifys in core goods.
UBS economist Paul Donovan added that inventory delays mean only a fraction of tax effects will surface immediately, though companies may launch passing costs to purchaseers.
This article first appeared on GuruFocus.
Leave a Reply