US stock futures edge up as tech shares find support
May was the best month for the S&P 500 and the tech-heavy Nasdaq since November 2023, thanks to a softening of Donald Trump's harsh trade stance. (EPA Images pic)
NEW YORK : US stock index futures nudged higher today as Hewlett-Packard Enterprise's (HPE) results fanned artificial-intelligence (AI) optimism and some tech shares gained, while investors awaited fresh data to better gauge the economic fallout of President Donald Trump's tariffs.
Shares of HPE rose 5.7% in premarket trading as demand for the company's AI servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
AI chip leader Nvidia edged up 0.7%, extending gains from earlier this week. Other chipmakers, including Broadcom and Advanced Micro Devices, also moved higher.
A gauge of global stocks touched record highs despite uncertainty around US trade policies.
Washington doubled tariffs on imported steel and aluminium to 50% today, the same day by which Trump had wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
Investor focus is squarely on tariff negotiations between Washington and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions between the world's top two economies simmer.
'All eyes are on China given it is currently the biggest loser from Trump's new trade policy, and it looks like we're still some way off from a deal between the two countries,' said Russ Mould, investment director at AJ Bell.
At 7.10am, Dow E-minis were up 65 points, or 0.15%, S&P 500 E-minis were up 11 points, or 0.18%, and Nasdaq 100 E-minis were up 37.5 points, or 0.17%.
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance.
With fresh tariff announcements in place, the S&P 500 remains about 3% away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalized earnings growth in 2026.
Data releases scheduled for today include ADP National Employment numbers for May as well as S&P Global and ISM's services sector activity readings for May.
Ahead of a US central bank meeting next week, monthly jobs data due on Friday will likely offer more signs on how trade uncertainty is affecting the US economy.
Among other early movers, Wells Fargo shares rose 2.9% after the US Federal Reserve removed a US$1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike fell 7.2% after it forecast quarterly revenue below estimates.
Apple nudged 0.6% lower after brokerage Needham downgraded the iPhone maker to 'hold' from 'buy'.
Dollar Tree fell 3.8% after the discount store operator forecast second-quarter adjusted profit would be as much as 50% lower than a year ago due to tariff-driven volatility.
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