US futures
Dow future 1.28% at 40738
S&P futures -2% at 5454
Nasdaq futures 2.1% at 19080
In Europe
FTSE 1.9% at 8112
Dax 2.75.% at 20925
- Stocks extend Friday’s gains on trade tariff developments
- Trump announced a reprieve on some Chinese-made tech products
- GS rises after beating earnings forecast
- Oil rebounds as China's crude imports rise 5%
Stocks extend recovery on Chinese tech import tariff relief
U.S. stocks are set to open higher on Monday as investors cheered Trump's exclusion of electronics from steep reciprocal trade tariffs on China. However, Trump did warn of more tariffs on thechip sector.
Today's move higher comes after a choppy previous week, during which several trade tariff-related announcements from Trump drove sentiment, causing sharp losses and steep gains. A bond market sell-off also flashed warning signs around the US Treasury's safe-haven status, sparking worries and resulting in Trump pausing reciprocal tariffs.
That same optimism rolled over into Monday after the White House announced that smartphones, computers, and other electronics would be temporarily exempted from Trump’s duties. These goods make up around 20% of all imports from China. However, Trump did say this was temporary and indicated that he would announce a rate on imported semiconductors over the coming week.
These developments are just the latest changes to Trump’s tariff policies, which have roiled financial markets as investors attempt to assess their impact on businesses and the US economy. This latest twist suggests that the US is stepping back from an all-out trade war, although a level of wariness remains..
Corporate news
Apple is rising after the latest trade tariff pause, as Trump’s tariffs would have made Apple goods almost unsellable if tariffs had come into effect.
Goldman Sachs is rising after posting that Q1 net revenue that beat expectations. Tariff-related market volatility resulted in all-time high top-line returns in equities. The banking giant saw a jump in revenue to $15.06 billion ahead of the $14.76 billion forecast. Equities trading revenue rose 27% to a record $4.19 billion. However, the outlook is markedly different, according to CEO David Solomon. The results come as peers have warned that Trump’s sweeping reciprocal terrorists could weigh on economic activity and earnings.
S&P500 forecast – technical analysis.
The S&P 500 recovered from the 4800 low and is looking towards 5500 resistance. A break above here would negate the near term selloff. A rise above here bring 5765 the 200 SMA into focus. Support can be seen at 5400. A break below here exposes 5200.
FX markets – USD falls, EUR/USD rises
The USD is falling as the market continues to fret over the escalating US-China trade war and what it means for the US economy. Fears of sticky inflation, weak US growth, and cooling employment weigh on the USD.
The EUR/USD is rising toward 1.14 amid a weaker USD and ahead of the ECB meeting this week, where the central bank is expected to cut rates again by 25 basis points. Despite the deteriorating outlook, the EUR has risen to multi-year highs as a major benefactor of USD weakness.
The GBP/USD is rising, capitalising on a weaker USD, and as investors continue to assess the impact of the tariffs on the UK economy and stagflation. BoE policymaker Megan Greene said it was unclear what it could do to inflation, also taking into account the weaker USD.
Oil rebounds as China crude imports jump
Oil prices are rising to start a new week, up 1.4% after a flat finish last week and dropping 10% in the week before that.
Oil prices are pushing higher after the US exclusion on some tariffs and following Chinese data, which showed a sharp rebound in crude imports last month. However, gains in oil prices are still being capped by concerns about the escalating trade war between the US and China, which could weaken the global economy and hurt oil demand.
China's crude oil imports were nearly 5% from a year earlier, as posted by Russian oil, and there was a rebound in Russian deliveries.
Thanks to global oil demand in the full fourth quarter of 2025 rising by only 300,000 barrels per year owing to slowing demand.
