US stock futures edged higher on Tuesday as China’s careful response to President Donald Trump’s tariff hike eased market nerves over the prospect of a deepening trade war.
Dow Jones Industrial Average futures () rose roughly 0.2%, while S&P 500 futures () stepped up 0.3%. Contracts on the tech-heavy Nasdaq 100 () put on 0.4%.
Rising fears of a full-on trade war drove a sell-off in stocks on Monday after the president said there was “no room left” for Canada or Mexico to strike a deal to mitigate promised tariffs.
Spirits have turned cautiously upbeat as markets assess the fallout from Trump delivering on those broad tariffs on America’s top trading partners. The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Monday.
As of 5:11:37 AM EST. Market Open.
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Canada hit back with a sweeping package of immediate tariffs on US imports, while China retaliated with additional 15% duties on US farm products such as chicken and pork, to come in on March 10.
Relief followed Beijing’s response, seen as less aggressive than feared and leaving room for negotiation with Trump. That helped set stocks up for a revival.
In earnings, retail giants Best Buy (BBY) and Target (TGT) will report quarterly results before the market opens on Tuesday. Crowdstrike (CRWD) and Nordstrom (JWN) will release their reports after the bell.
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