U.S. stock futures were inching higher early Tuesday. It could be part of a pattern of stocks rising early in the day before losing ground in the afternoon, if Monday’s trading is anything to go by.
Yesterday’s turnaround may be fallout from President-elect Donald Trump quashing speculation that he would pare back plans to introduce across-the-board tariffs on imports when he takes office later this month. While such taxes might help some companies that would benefit from foreign firms becoming less competitive in the U.S., on balance the tariffs will probably hurt stocks. Firms that buy and sell abroad would end up bearing the higher cost of doing business.
The market’s strength still appears to be in technology. The CES trade show in Las Vegas may help to bolster optimism about the potential of artificial intelligence and semiconductor sales.
Futures for the Dow Jones Industrial Average added 28 points, or 0.1%. Contracts tied to the S&P 500 were also up 0.1%, as did futures tracking the tech-heavy Nasdaq 100. Despite retreating in the afternoon, the S&P and Nasdaq both finished Monday higher, led by tech. The Dow ended up losing 0.1%.
Economic data that could impact the market today include new figures on job openings and a survey on the strength of services. The stock exchange will be closed on Thursday to commemorate President Jimmy Carter.
Bond yields were little changed. The yield on the 10-year U.S. Treasury was at 4.629%. The 2-year note yielded 4.272%.