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Futures tracking Dow, S&P 500 and Nasdaq flat
Nov 26 (Reuters) - U.S. stock index futures were flat on
Tuesday, as investors paused following several sessions of gains
and weighed 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 5:10 a.m. ET, Dow E-minis were up 1 point, or
were flat, S&P 500 E-minis were up 0.75 points, or 0.01%
and Nasdaq 100 E-minis were up 10 points, or 0.05%.
Automakers such as Ford and General Motors ( GM )
-that have highly integrated supply chains across Mexico, the
U.S. and Canada - lost 1.5% and 2.2%, 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.
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 0.5%.
On the data front, the Conference Board's survey on consumer
confidence 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 55.9%, As per the
CME Group's FedWatch Tool.
Among others, Zoom Video Communications ( ZM ) lost 7%%. The
company raised its forecast for fiscal 2025 revenue and adjusted
profit.
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.
Investors also monitored talks of a ceasefire between Israel
and Lebanon, while tensions remained high between Ukraine and
Russia. Oil prices, the most sensitive to geopolitical tensions
in the two regions, edged higher after Monday's drop.