U.S. stock index futures rose on Tuesday, supported by an easing of fears of over-hit trade tariffs under President-elect Donald Trump, and ahead of key inflation data.
Dow Jones futures were up 150 points, about 0.4%, S&P 500 futures were up 30 points, about 0.5% and Nasdaq 100 futures gained about 135 points, or 0.7%.
Wall Street ended Monday’s trading day mixed, with gains in cyclical stocks serving to slightly offset persistent losses in technology stocks.
The S&P 500 was up 0.2% and the Dow Jones Industrial Index was up 0.9%, both recovering from more than two-month lows. The NASDAQ Composite lagged, down 0.4% to near two-month lows.
Trump’s team discusses a gradual hike in tariffs – Bloomberg
Trump’s economic team is analyzing a program of gradual increases in import tariffs over the next few months, Bloomberg reported Monday, with the proposal analyzed to improve the standoff with trading partners and avoid a sudden spike in inflation.
The plan – which has not yet been presented to Trump – entails a schedule of 2% to 5% tariff increases per month, and the executive authority of the International Emergency Economic Powers Act will apply.
Trump will be inaugurated next week on January 20 and has made promises to impose steep trade tariffs on several major economies, most notably China, since the beginning of his term. He promised to impose a minimum tariff of 10% to 20% on all imported goods, and a tariff of around 60% on China.
According to recent reports, he may also declare a national economic emergency in order to implement the plan.
Fears of increased import tariffs had generated heightened risk aversion on Wall Street, largely because Federal Reserve officials also noted that tariffs could underpin inflation and keep interest rates high in the long term.
Inflation Data Dump Begins
This week, attention turns to December’s consumer price index inflation data, which will be released on Wednesday. Inflation will provide more signals on interest rates, after the previous week’s strong payrolls data cemented bets on a slower pace of Fed rate cuts by 2025.
Earlier on Tuesday, markets will have the option to analyze a monthly gauge of producer prices.
Economists expect the producer price index for final demand to increase 0.4% in December, matching last month’s pace. In the 12 months to December, the PPI is estimated to increase by 3.4%, an acceleration from last month’s 3.0%.
Banks, protagonists of the results season
Earnings season will also kick off in earnest on Wednesday, with earnings reports from several of Wall Street’s major banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS) and Citigroup (C).
On the other hand, shares of healthcare companies such as Unitedhealth Group (UNH) and Humana (HUM) rose after the Biden administration proposed 2026 reimbursement rates for Medicare Advantage plans that would mean a 2.2% increase in payments.
Shares of Lululemon Athletica (LULU) rose pre-market open after the athleisure company raised its vacation profit and revenue forecasts, while shares of KB Home (KBH) soared 9% after the homebuilder’s fourth-quarter results topped analysts’ estimates on both the top and bottom lines.
Crude oil loses ground
Oil prices fell, moving away from four-month highs unleashed by new U.S. sanctions on Russian oil exports and uncertainty over supply disruptions.
Oil has risen steadily in the previous two sessions after the Biden administration unveiled its most comprehensive sanctions package to date, aimed at cutting Russia’s oil and gas revenues.
These developments are expected to significantly affect Russian oil exports, forcing major importers such as China and India to look for substitute suppliers in regions such as the Middle East, Africa and the Americas.
