US Stock Futures Steady as Trade Worries Ease: Markets Wrap
(Bloomberg) — US futures were steady as traders weighed the economic implications of tariffs while parsing the latest batch of company earnings. The dollar weakened and bond yields rose.
S&P 500 futures were little changed and Nasdaq 100 contracts added 0.2% after China’s restrained response to US tariffs, following a last-minute reprieve for Canada and Mexico. The dollar index slid 0.3% as some traders flagged relief that the worst-case scenarios seem to have been avoided.
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Investors are worried that tariffs will stoke inflation and curb corporate profits, but the earnings season so far has been mostly positive. Halfway into the fourth-quarter reporting period, the S&P 500 is on track for earnings growth of 12.4% year-on-year, the strongest pace in three years, according to Deutsche Bank AG.
On Tuesday, Palantir Technologies Inc. shares soared as much as 20% in US premarket trading after the software company gave a forecast that is stronger than expected, citing demand for its AI products. Pfizer Inc. gained after a beat. But PayPal Holdings Inc., Merck & Co. Inc., PepsiCo Inc. and Estée Lauder Cos. declined on disappointing outlooks.
“The tariff issue is not going away as fast as one could have hoped for,” said Andrea Tueni, head of sales trading at Saxo Banque France SAS. “Sure, earnings are providing some oxygen but there’s a bigger game at play here. We’re only at the beginning of a long process so my advice is to proceed cautiously.”
Traders are awaiting results Tuesday from Google parent Alphabet Inc., whose shares rose in premarket trading even after China announced it would probe the company for antitrust violations. Also on the radar is data on US factory- and durable-goods orders.
Europe’s Stoxx 600 benchmark fluctuated. UBS Group AG shares dropped as concern over a potential increase in capital requirements outweighed better-than-expected results. Vodafone Group Plc fell after the communications firm noted worsening conditions in Germany. BNP Paribas rose on a surge in trading revenue, while Infineon Technologies AG jumped after the chipmaker forecast revenue that beat analyst estimates.
In commodities, crude oil declined on the worsening demand outlook. Gold hovered near a record high.
Key events this week:
- US factory orders, US durable goods, Tuesday
- Alphabet earnings, Tuesday
- Fed’s Raphael Bostic, Mary Daly, Philip Jefferson speak, Tuesday
- China Caixin services PMI, Wednesday
- Eurozone HCOB Services PMI, PPI, Wednesday
- US trade, Wednesday
- Fed’s Austan Goolsbee, Tom Barkin, Michelle Bowman, Philip Jefferson speak, Wednesday
- Eurozone retail sales, Thursday
- UK rate decision, Thursday
- US initial jobless claims, Thursday
- Fed’s Christopher Waller, Lorie Logan speak, Thursday
- Amazon earnings, Thursday
- US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
- Fed’s Michelle Bowman, Adriana Kugler speak, Friday
And some of the main market moves:
Stocks
- S&P 500 futures were little changed as of 8:32 a.m. New York time
- Nasdaq 100 futures rose 0.2%
- Futures on the Dow Jones Industrial Average fell 0.1%
- The Stoxx Europe 600 was little changed
- The MSCI World Index rose 0.1%
Currencies
- The Bloomberg Dollar Spot Index fell 0.3%
- The euro fell 0.1% to $1.0332
- The British pound fell 0.3% to $1.2417
- The Japanese yen fell 0.4% to 155.38 per dollar
Cryptocurrencies
- Bitcoin fell 2.4% to $99,503.79
- Ether rose 0.2% to $2,823.43
Bonds
- The yield on 10-year Treasuries advanced four basis points to 4.59%
- Germany’s 10-year yield advanced five basis points to 2.43%
- Britain’s 10-year yield advanced six basis points to 4.55%
Commodities
- West Texas Intermediate crude fell 2.7% to $71.19 a barrel
- Spot gold rose 0.7% to $2,836.09 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jessica Menton, Margaryta Kirakosian and Julien Ponthus.
©2025 Bloomberg L.P.
