United States equity futures rose on Sunday evening (Monday AEST) after President Donald Trump delayed his proposed 50% tariffs on European Union goods, shifting the imposition date from 1 June to 9 July.
By 9:30 am AEST (11:30 pm GMT), Dow Jones, S&P 500, and Nasdaq-100 futures advanced 0.6%, 0.8%, and 0.9%, respectively.
The bounce comes after Friday’s market declines, triggered by Trump’s initial announcement accusing the EU of obstructing trade negotiations and being “very difficult”.
The revised tariff timeline aligns with the expiration of the 90-day pause Trump announced on 9 April regarding reciprocal tariffs.
The delay provided some relief to investors rattled by renewed trade tensions and a sharp sell-off in the dollar, which on Friday touched its lowest point since December 2023.
Markets remain cautious as Friday’s tariff threat underscored the unpredictability of U.S. trade policy under Trump.
In addition to targeting EU goods, Trump reiterated his proposal to levy a 25% tariff on smartphones unless firms like Apple and Samsung move manufacturing to the US - despite the country lacking domestic smartphone production capabilities.
Investor focus is now shifting to the upcoming release of the Federal Reserve’s preferred inflation metric, the core personal consumption expenditures (PCE) price index later in the week.
The April figure is expected to show a modest 0.1% increase, up from last month's flat reading.
