US market futures today: Dow, S&P 500, Nasdaq futures steady as Trump's tariff shock tests market nerves

Time of India

2 days ago

U.S. stock futures held firm early Wednesday, with Wall Street taking a cautious stance after President Donald Trump stunned markets by doubling tariffs on steel and aluminum imports. The move, aimed at shielding American industry, rekindled trade war fears—but surprisingly, investor reaction remained measured.
Futures for the Dow Jones Industrial Average ticked up 0.1%, while S&P 500 futures added 0.2%. The Nasdaq 100 futures barely budged, holding just above flat after a solid Tuesday rally. The calm tone comes as traders digest Trump's latest executive order, which hikes tariffs from 25% to 50%, exempting only the United Kingdom.
What triggered Trump's new tariffs on steel and aluminum?
The sudden tariff hike, which took effect early Wednesday, follows a fresh executive order signed by President Trump Tuesday night. His move to double steel and aluminum import duties is part of a broader push to defend American manufacturers and reduce foreign dependency in critical sectors.
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Interestingly, the UK stands alone as the only major ally spared from these new tariffs. Trump's decision comes amid worsening U.S. tensions with both China and the European Union, stemming from broader clashes over technology exports, rare earth materials, Taiwan, and visa restrictions.
In a pointed message on social media, Trump called Chinese President Xi Jinping 'extremely hard to make a deal with,' further dimming hopes for a near-term U.S.-China trade breakthrough.
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How is Wall Street responding to the trade pressure?
Despite rising geopolitical tension, U.S. markets ended Tuesday on a positive note, marking a second straight day of gains. What helped calm investors? A surprisingly upbeat reading from the Job Openings and Labor Turnover Survey (JOLTS).
The report showed strong labor demand, reassuring investors that the underlying U.S. economy remains resilient—even in the face of intensifying global uncertainty. Job openings rose more than expected, signaling that companies are still hiring and supporting overall market sentiment.
Still, with more labor data coming this week—including the ADP private payrolls report and Friday's nonfarm jobs report—traders are staying alert. A weak surprise could shift this mood quickly.
Will the new tariffs hurt chances for a U.S.-China trade deal?
It's looking increasingly unlikely. Trump's latest rhetoric and tariff move seem designed to apply maximum pressure, but they could just as easily backfire by pushing Beijing further away from the negotiating table.
Key sticking points—like semiconductor export controls, intellectual property disputes, and strategic access to rare earths—remain unresolved. And with Trump labeling Xi as a tough partner, the path to any meaningful deal is narrowing.
Global supply chains, especially in tech and manufacturing, are already feeling the pinch. If these trade flare-ups continue, investors should brace for more volatility on Wall Street and across global markets.
What could move the stock market next?
All eyes now turn to U.S. labor data, which could make or break the market's next move. Wednesday's ADP report is expected to provide early insight into private-sector job growth. But the main event is Friday's May nonfarm payrolls report—a key indicator the Federal Reserve watches closely.
If job growth remains strong and wage inflation slows, it could ease pressure on the Fed to raise interest rates further. That would be a welcome sign for investors.
However, if the data disappoints, especially with new tariffs now in the mix, markets may start pricing in fresh risks—potentially dragging stocks lower in the short term.
Is Wall Street downplaying the risks or banking on economic strength?
Right now, it's a balancing act. On one side, tariffs, trade tensions, and rate uncertainty present real headwinds. On the other, strong economic signals—particularly around employment—are keeping investor optimism alive.
If Friday's jobs numbers hit the mark and inflation trends lower, stocks could rally further. But if cracks start to show, the recent calm could turn quickly into concern.
FAQs
Q1: Why are Dow, S&P 500, and Nasdaq futures steady despite Trump's new tariffs?
Markets remain resilient thanks to strong labor data and optimism that the U.S. economy can handle trade headwinds.
Q2: What did Trump change in steel and aluminum tariffs?
Trump doubled tariffs from 25% to 50% on steel and aluminum imports, exempting only the UK from the increase.