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US STOCKS-Futures muted as investors weigh Trump's tariff threats
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US STOCKS-Futures muted as investors weigh Trump's tariff threats
Nov 26, 2024 3:13 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

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.

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