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Stocks- U.S. Futures Rise as Investors Shrug Off New Trade Tariffs

Published 2018-09-18, 06:52 a/m
© Reuters.  U.S. futures pointed to a higher opening bell on Tuesday.
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Investing.com – U.S. futures pointed to a higher opening bell on Tuesday as investors shrugged off news that the White House imposed a fresh round of tariffs on China.

The S&P 500 futures rose 5 points or 0.18% to 2,901.25 as of 6:50 AM ET (10:50 GMT) while Dow futures gained 52 points, or 0.20%, to 26,154.0. Meanwhile tech heavy Nasdaq 100 futures increased 19 points, or 0.26%, to 7,484.25.

U.S. President Donald Trump announced on Monday that the U.S. will put 10% tariffs on $200 billion in Chinese goods, which will go up to 25% at the end of the year.

Trump added that "if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."

China said Tuesday that it has no choice but to retaliate against the tariffs.

Apple (NASDAQ:AAPL) was up 0.46% in premarket trading after the White House spared a category of high-tech products from tariffs that Apple uses for its Watch and AirPods.

Advanced Micro Devices Inc (NASDAQ:AMD) gained 2.53% while Avon Products Inc (NYSE:AVP) surged 10.58% amid reports that Brazil’s Natura Cosmeticos (SA:NATU3) has approached the cosmetics company about a takeover.

Elsewhere Oracle Corporation (NYSE:ORCL) dipped 4.70% after its fiscal first-quarter revenue for cloud services were less than expected.

In Europe stocks were up. Germany’s DAX rose 22 points or 0.18% while in France the CAC 40 was up 9 points or 0.18% and in London the FTSE 100 increased 12 points or 0.17%. Meanwhile the pan-European Euro Stoxx 50 gained 1 point or 0.06% while Spain’s IBEX 35 rose 8 points or 0.09%.

In commodities, gold futures were down 0.17% to $1,203.80 a troy ounce while crude oil futures increased 1.19% to $69.50 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, inched up 0.07% to 94.16.

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