US stock futures saw modest gains as Wall Street braced for the upcoming tariffs set to take effect. Futures tied to the S&P 500 (ES=F) rose by 0.2%, while Nasdaq futures (NQ=F) climbed 0.3%, and Dow Jones futures (NQ=F) increased by 0.1%. These small movements reflect anticipation of the broad tariffs that President Donald Trump is set to impose on the US’s major trading partners.
New Tariffs on Canada and Mexico
Starting tonight, Canada and Mexico will face 25% duties on US imports. Despite attempts by both countries to negotiate with the Trump administration, President Trump stated on Monday that “there is no room left for Canada or Mexico” to reach a deal. As a result, Canada has announced plans to retaliate with a wide range of counter-tariffs on US products.
Executive Order on China Tariffs
In a related move, President Trump signed an executive order on Monday that will increase US tariffs on China from 10% to 20%. The order cited China’s failure to take sufficient action to address the illicit drug crisis as the primary reason for the tariff hike. This marks a significant escalation in trade tensions between the two countries.
Nvidia’s Struggles and Earnings Reports
Meanwhile, traders reacted to a report revealing that Nvidia (NVDA) chips were being smuggled into China despite export restrictions. This news caused Nvidia’s stock to drop, closing at its lowest level since September. However, shares managed to stabilize after the market closed.
Investors are also looking ahead to earnings reports from major retailers. Best Buy (BBY) and Target (TGT) are scheduled to report their results before the market opens on Tuesday. Meanwhile, Crowdstrike (CRWD) and Nordstrom (JWN) will release their earnings reports after the market closes.
Related topics:
