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Ford, GM fall after tariff threats

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Wells Fargo ( WFC ) gains after report asset cap likely to be

lifted

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Futures up: Dow 0.18%, S&P 500 0.23%, Nasdaq 0.27%

(Updates with quote, prices)

By Johann M Cherian and Purvi Agarwal

Nov 26 (Reuters) - U.S. stock index futures inched

higher on Tuesday, building onto gains, while investors assessed

the implications Donald Trump's tariffs on top trade partners

could have on the local economy.

The president-elect said he would impose a 25% conditional

tariff on Canadian and Mexican imports that could violate a

free-trade deal he negotiated during his previous term. He also

outlined "an additional 10% tariff, above any additional

tariffs" on imports from China.

At 6:53 a.m. ET, Dow E-minis were up 80 points,

or 0.18%, S&P 500 E-minis were up 13.75 points, or 0.23%

and Nasdaq 100 E-minis were up 57.25 points, or 0.27%.

Automakers such as Ford and General Motors ( GM )

-that have highly integrated supply chains across Mexico, the

U.S. and Canada - lost 2.5% and 3.3%, respectively in premarket

trading.

"New tariffs from the U.S. could intensify the global trade

frictions and may impact the economic growth prospects in the

longer term," strategists at ING bank said.

However, some analysts say that the threats might not

materialise into policies.

"There has been a view among some investors that Trump's

tariff talk was a negotiating tactic, a threat rather than a

promise. That might still end up the case...," said Dan

Coatsworth, investment analyst at AJ Bell.

Yields on Treasury bonds that had slipped in the previous

session following Scott Bessent's selection as incoming Treasury

secretary, rose and pressured riskier equities.

The benchmark S&P 500 touched a record high on Monday

and logged its sixth-straight session of gains and a drop in

yields lifted rate-sensitive sectors such as real estate

and regional banks.

Investors also rotated into small-cap companies, that helped

the Russell 2000 index scale an all-time high on Monday,

surpassing the previous record hit three years ago. On Tuesday,

futures tracking the Russell dropped 0.3%.

On the data front, a consumer confidence survey is due at

10:00 a.m. ET and post-noon markets will assess minutes from the

central bank's meet earlier this month. However, top on the

radar this week is the personal consumption expenditure report

due on Wednesday.

Minneapolis Federal Reserve President Neel Kashkari,

typically on the hawkish end of the U.S. central bank's policy

spectrum, said he is open to cutting interest rates again next

month.

Analysts say Trump's trade and fiscal policies, though seen

as a positive for companies and economic growth, could stoke

inflation pressures and slowdown the Fed's monetary policy

easing cycle.

Traders have recently swayed in placing their bets on the

central bank's move in December. The probability for a 25-basis

point interest rate cut currently stands at 59.6%, as per the

CME Group's FedWatch Tool.

Among others, Zoom Video Communications ( ZM ) lost 7.7%.

The company raised its forecast for fiscal 2025 revenue and

adjusted profit.

Wells Fargo ( WFC ) gained 2.9% after Reuters reported the

bank's $1.95 trillion asset cap could likely be lifted next

year.

Poseida Therapeutics' ( PSTX ) shares more than tripled in

value after Switzerland's Roche said it will acquire the

cell therapy maker in a cash deal worth up to $1.5 billion.