Stocks may show a lack of direction in early trading on Tuesday following the volatility seen in the previous session. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by less than a tenth of a percent.
Traders may be reluctant to make significant moves as they digest the latest developments regarding President Donald Trump’s tariffs.
While Trump has agreed to pause 25 percent tariffs on imports from Mexico and Canada for a month, China has slapped retaliatory tariffs on U.S. imports in response to a 10 percent trade duty imposed on Chinese goods.
China’s Finance Ministry said it will impose a 15 percent duty on imports of coal and liquefied natural gas from the U.S.
In addition, there will be a 10 percent tariff on imports from the U.S. of crude oil, agricultural equipment and automobiles beginning February 10.
Traders may also stick to the sidelines ahead of the release of the Labor Department’s closely watched monthly jobs report on Friday.
The report, which is expected to show employment climbed by 170,000 jobs in January after jumping by 256,000 jobs in December, could impact the outlook for interest rates.
Not long after the start of trading, the Labor Department is scheduled to release its report on job openings in the month of December. Job openings are expected to dip to 8.0 million in December after rising to 8.1 million in November.
The Commerce Department is also due to release its report on new orders for manufactured goods in the month of December. Factory orders are expected to decrease by 0.7 percent in December after falling by 0.4 percent in November.
Stocks moved sharply lower early in the session on Monday but regained ground over the course of the trading day. The major averages climbed well off their worst levels, with the Dow briefly reaching positive territory, but ended the day in the red.
After plunging by as much as 2.5 percent in early trading, the tech-heavy Nasdaq finished the session down 235.49 points or 1.2 percent at 19,391.96. The S&P 500 also slid 45.96 points or 0.8 percent to 5,994.57, while the Dow fell 122.75 points or 0.3 percent to 44,421.91.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index advanced by 0.7 percent, while Hong Kong’s Hang Seng Index surged by 2.8 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.3 percent.
In commodities trading, crude oil futures are plunging $1.91 to $71.25 a barrel after climbing $0.63 to $73.16 a barrel on Monday. Meanwhile, after jumping $22.10 to $2,857.10 an ounce in the previous session, gold futures are inching up $6.20 to $2,863.30 an ounce.
On the currency front, the U.S. dollar is trading at 155.34 yen compared to the 154.73 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0331 compared to yesterday’s $1.0344.
Business News
U.S. Stocks May Lack Direction As Traders Digest Tariff Developments
2025-02-04 13:47:34
