US pre-open: Futures higher as Trump delays EU tariffs

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Tuesday after Donald Trump agreed to delay tariffs of 50% on imports from the European Union. As of 1300 BST, Dow Jones futures were up 1.31%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.51% and 1.72% firmer, respectively.

The Dow closed 256.02 points lower on Friday after Trump called for fresh tariffs on the EU and technology giant Apple ahead of the Memorial Day long weekend.

Trade Nation's David Morrison said: "Trump surprised just about everyone when he announced the fresh EU tariff last Friday and said it would kick in on 1 June. He has now deferred it to 9 July. This postponement has helped soothe tensions following last week's turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute. Mr Trump also said that Apple must pay a 25% levy on all iPhones made outside the US. Apple's stock dropped over 3% on the news although it has recovered some of the lost ground this morning. Today's upbeat open reflects renewed risk appetite as investors welcomed the pause in tariff escalation, even as broader uncertainties linger."

On the macro front, April durable goods orders will be published at 1330 BST, while March's S&P Case-Shiller home price index was slated for release at 1400 BST, May consumer confidence figures will be out at 1500 BST and the Dallas Federal Reserve's May manufacturing business index will follow at 1530 BST.

In the corporate space, identity and access management firm Okta will report earnings after the close on Tuesday, while the likes of Nvidia, Macy's and Costco were all slated to report before the end of the week.





Reporting by Iain Gilbert at Sharecast.com