U.S. stock index futures rose Sunday evening as investors reacted positively to President Donald Trump’s decision to exclude electronics from new trade tariffs on China. However, Trump warned that more tariffs on the sector may still be coming.
Futures gained following a strong finish on Wall Street Friday. The Federal Reserve’s reassurances and strong first-quarter earnings from major banks helped calm investors’ nerves amid growing concerns over the U.S.-China trade war.
This week, investor attention will shift to more key earnings reports and statements from Federal Reserve Chair Jerome Powell. Additionally, market participants will closely watch for further details on Trump’s tariff plans, with the President expected to offer more information on Monday.
Futures Rise as Tariff Exemptions Offer Reprieve to Tech Stocks
S&P 500 Futures increased by 0.9% to 5,438 points, while Nasdaq 100 Futures climbed 1.2% to 19,034.75 points. Dow Jones Futures gained 0.6% to 40,635 points.
Despite the exclusions, Trump stated that electronics like smartphones and laptops will still face 20% tariffs related to fentanyl. Additionally, the administration signaled that electronics, including semiconductors, will be hit with separate tariffs in the coming months.
However, the decision to exclude electronics from the 145% tariff, which was recently imposed on China, gave tech giants like Apple and Tesla some relief, as they have substantial business dealings with China. The White House said the exclusions would allow companies time to shift production to the U.S.
Wall Street Ends Positive After Volatile Week
U.S. stocks ended the week with strong gains, despite the volatility caused by escalating trade tensions between Washington and Beijing. The news of tariff exemptions came late in Friday’s trading session but was enough to push markets higher.
China recently imposed a 125% duty on all American imports, and tensions have remained high. However, the Federal Reserve’s economic support and stronger-than-expected earnings from banks like JPMorgan Chase, Morgan Stanley, and Wells Fargo helped boost investor confidence.
The S&P 500 rose 1.8% to 5,363.36 points, while the NASDAQ Composite gained 2.1% to 16,724.46 points on Friday. The Dow Jones Industrial Average rose 1.6% to 40,212.71 points.
Key Earnings and Fed Speeches Awaited
This week, investors are looking ahead to more Q1 earnings reports. Goldman Sachs will report on Monday, followed by Johnson & Johnson, Bank of America, Citigroup, and United Airlines on Tuesday.
Several Federal Reserve officials are scheduled to speak this week, with Chair Jerome Powell’s remarks on Wednesday expected to be a focal point.
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