Dow Futures are trending downward following the gains observed in equities on Wall Street during the prior session. The White House is said to be urging countries to submit their most competitive offers for trade negotiations by Wednesday, as U.S. officials intensify their efforts to finalize agreements with individual nations ahead of the conclusion of the 90-day suspension of retaliatory tariffs. Job openings figures are poised to offer insights into the labor market in anticipation of the significant nonfarm payrolls report scheduled for Friday, as Taiwan Semiconductor Manufacturing Company’s CEO addresses the ramifications of Trump’s levies.
U.S. stock futures indicated a downward trajectory on Tuesday, as investors remained vigilant regarding global trade tensions and the significant U.S. employment figures set to be released later this week. The Dow futures contract experienced a decline of 204 points, or 0.5%, while S&P 500 futures fell by 28 points, also 0.5%, and Nasdaq 100 futures dropped by 99 points, representing a decrease of 0.5% as well. The primary indices concluded the day on a positive note on Monday, despite a slight decline in risk appetite due to concerns regarding the resurgence of trade tensions between the U.S. and China. U.S. President Donald Trump has leveled accusations against China for violating a detente concerning tariffs on essential minerals — a statement that Beijing has denied. U.S. Treasury Secretary Scott Bessent stated on Sunday that Trump is expected to engage in discussions with Chinese counterpart Xi Jinping shortly, aiming to address the situation amicably.
Meanwhile, traders will be eager to observe whether Trump embraces a more aggressive position on trade, following an emerging narrative suggesting that he may ultimately retreat from his more forceful tariff threats, analysts at Vital Knowledge noted. Amid rising apprehensions regarding a renewed trade conflict, the U.S. dollar experienced a decline, while Treasury yields, which typically exhibit an inverse relationship with prices, saw a slight increase. Concurrently, gold, often regarded as a safe-haven asset, reached a three-week peak. The Trump administration is calling on nations to submit their most competitive proposals for trade negotiations by Wednesday.
As the self-imposed 90-day pause on Trump’s extensive reciprocal tariffs on various nations approaches its expiration in July, the White House is urgently working to finalize a series of tailored agreements. Officials from the Trump administration have indicated their intention to negotiate numerous individual agreements amid the postponement, a situation that was, in part, driven by financial markets’ significant pushback against the substantial increase in tariffs first announced at a so-called “Liberation Day” event in early April. Economic adviser Kevin Hassett and other officials have indicated that multiple agreements are nearing finalization, though to date, the only significant deal made public has been with Britain.
An official with the United States Trade Representative indicated that trade talks are ongoing, while Deputy Treasury Secretary Michael Faulkender remarked to CNBC that negotiations are making “very good progress”. Citing a draft letter to negotiating partners from the USTR, Reuters reported that the U.S. is now requesting countries to present their most favorable proposals concerning various critical areas, including strategies to eliminate non-tariff barriers, along with tariff and quota offers for the acquisition of U.S. industrial and agricultural products. Requests have also been made for commitments regarding digital trade and economic security, along with various country-specific agreements.
Central to the economic calendar is the forthcoming Job Openings and Labor Turnover Survey, which may provide markets with additional clarity regarding the effects of Trump’s tariff policies on the broader labor market. Job openings, serving as an indicator of labor demand, are anticipated by economists to have decreased marginally to 7.110 million in April. The figure was recorded at 7.192 million in March. In other news, auto sales data for May is also set to be released. Analysts noted that the figure has been enhanced in recent months by car buyers acquiring vehicles ahead of the enforcement of Trump’s tariffs. Investors will be keen to ascertain whether this demand has diminished.
The overall economy has demonstrated a notable resilience amid the ongoing tariff turmoil. Nonetheless, the Organisation for Economic Co-operation and Development indicated that it had revised its forecast for U.S. growth to 1.6% this year, a decrease from the earlier estimate of 2.2%. The OECD indicated that U.S. tariffs were expected to exert pressure on growth in China, the world’s second-largest economy, although this impact could be mitigated by government subsidies associated with consumer goods. In May, a private-sector survey revealed that Chinese factory activity contracted for the first time in eight months.
TSMC CEO C.C. Wei stated that U.S. trade tariffs were affecting the chipmaker to some extent, yet the significant demand for artificial intelligence was expected to offset the challenges posed by trade. During the company’s annual shareholders meeting, Wei remarked that TSMC had not observed any shifts in customer trends as a result of increased tariff uncertainty, and that clarity on the situation is expected to emerge in the upcoming months. “Tariffs do have some impact on TSMC, but not directly.” Tariffs are levied on importers rather than exporters. “TSMC is an exporter,” Wei said. “However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down. However, I can assure you that the demand for AI has consistently remained robust and is outpacing supply on a continual basis.” Wei’s comments follow the world’s largest chipmaker reporting robust first-quarter earnings in April, alongside a favorable outlook for the years ahead.
On Tuesday, oil prices experienced a modest increase, building on the significant gains from the previous session. This uptick comes amid ongoing uncertainty surrounding a U.S.-Iran nuclear agreement and escalating tensions between Ukraine and Russia, which signal the possibility of further supply disruptions. Brent futures increased by 0.8%, reaching $65.13 per barrel, while U.S. West Texas Intermediate crude futures saw a rise of 0.9%, settling at $63.09 per barrel. Iran is anticipated to dismiss a U.S. proposal aimed at resolving a long-standing nuclear dispute, resulting in the continuation of sanctions that would constrain Iranian supply and bolster oil prices. Both contracts experienced an increase of nearly 3% in the previous session following the decision by the Organization of the Petroleum Exporting Countries and allies, referred to as OPEC+, to maintain output increases in July at 411,000 barrels per day. This figure was less than what some market participants had anticipated and matched the hikes of the preceding two months.