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Futures up: Dow 0.18%, S&P 500 0.14%, Nasdaq 0.13%
July 9 (Reuters) - U.S. stock index futures edged up on
Wednesday, as investors navigated the currents of President
Donald Trump's aggressive tariff moves and kept a close watch on
negotiations with global trade partners.
By 5:28 a.m. ET, U.S. S&P 500 E-minis were up 8.5
points, or 0.14%, Nasdaq 100 E-minis were higher 29
points, or 0.13%, Dow E-minis were up 78 points, or
0.18%.
Trump said on Tuesday he would impose a 50% tariff on
imported copper and soon introduce long-threatened levies on
semiconductors and pharmaceuticals, a day after he pressured 14
trading partners with fresh tariff letters. He said "a minimum
of seven" tariff notices would be released on Wednesday.
After Monday's sharp sell-off, sparked by the White House's
sweeping new tariff threats against major trading partners like
Japan and South Korea, Wall Street's reaction remained
relatively muted.
The S&P 500 and the tech-heavy Nasdaq both
closed little changed on Tuesday, a stark contrast to the wild
volatility following Trump's "Liberation Day" tariff
announcement in April.
With the deadline for tariffs now moved to August 1,
investors are pinning their hopes on negotiations to stave off
an all-out trade war.
"Market volatility is likely to pick up, but the latest
development does not constitute an escalation in the trade war,"
UBS analysts said.
Last week, the S&P 500 and the Nasdaq closed at record highs
following a surprisingly strong jobs report that pointed to
resilience in the labor market. Now, markets await Thursday's
initial jobless claims figures for further insights into the
labor market.
Traders will also parse through the minutes from the Federal
Reserve's June meeting, due at 2:00 p.m. ET, for any hints about
when policymakers might resume easing rates.
While a July rate reduction is almost fully ruled out, the
odds of a September cut stand at about 63%, according to CME
Group's FedWatch tool.
Amid Trump's chaotic tariff policies, the Fed has refrained
from cutting interest rates, wary of how trade uncertainty could
impact growth and inflation.
Among stocks, AES Corp ( AES ) rose 10.7% in premarket
trading after Bloomberg News reported that the power provider
was exploring options including a sale.
Shares of U.S. advertising firms Interpublic and
Omnicom ( OMC ) fell over 2.9% and 3.4% respectively, after peer
WPP ( WPP ) slashed its annual profit guidance.