How are stock-index futures trading:
S&P 500 futures are up 0.02%.
Dow Jones Industrial Average futures are down 0.01%.
Nasdaq 100 futures are adding 0.04%.
On Monday, the Dow Jones Industrial Average rose 440 points, or 0.99%, to 44,737, the S&P 500 increased 18 points, or 0.3%, to 5,987, and the Nasdaq Composite gained 51 points, or 0.27%, to 19,055.
The renewed tariff-tension has hobbled a rally helped by confirmation that Scott Bessent was Trump’s choice for Treasury secretary.
“Talk about swinging from one extreme to the other. The week started on a calm note with the nomination of Scott Bessent as U.S. Treasury secretary, a hedge fund manager seen as a safe pair of hands and someone who might rein in Donald Trump’s more aggressive ideas, such as toning down tariffs,” says Dan Coatsworth, investment analyst at AJ Bell.
“If those tariffs are at the top of his agenda, there is now an elevated risk they will be closely followed by punishing tariffs on other countries. Trump clearly wants to make his mark and show he’s the boss,” Coatsworth added.
Still, major equity benchmarks remain at or very near record highs as investors welcome a supportive environment of reasonable economic growth, solid corporate earnings and the prospect of a generally more business friendly administration in Washington.
Also underpinning equities is a belief that the Federal Reserve can continue cutting interest rates, though the chances of a reduction in borrowing costs next month has dwindled to less than a 60%.
With that in mind, attention later in the session will turn to the release at 2 p.m. Eastern of the minutes of the Fed’s November policy meeting.