President Donald Trump extended the deadline for new tariffs, calming market fears that had sparked a selloff in the previous session. U.S. stock futures were set for small gains early Tuesday, with S&P 500 futures up 0.1%, Dow Jones Industrial Average futures up four points, and Nasdaq 100 futures gaining 0.2%. Wall Street’s fear gauge, the VIX, showed a decline, indicating reduced market anxiety.
Trump signed an executive order on Monday extending the deadline for his reciprocal tariffs to August 1 from July 9. While this temporarily eases market pressure, Trump has also sent letters to 14 countries, including Japan and South Korea, detailing potential tariff rates ranging from 25% to 40%. These moves have shifted market focus to the extended timeline for trade negotiations rather than immediate tariff impacts.
The extended tariff deadline could complicate matters for the Federal Reserve, which is already grappling with inflation concerns.
Tariff deadline extension calms markets
Retailers might use the extra time to stock up before the holiday season, affecting inventory levels and inflation readings.
Treasury yields also saw movement, with the benchmark 10-year Treasury yield standing at 4.396%, slightly up from the previous day. In the stock market, Tesla’s stock was rebounding in premarket trading after a significant drop on Monday. Focus also shifts to Amazon as its extended four-day Prime Day event kicks off, expected to generate a record $12.9 billion in U.S. sales, up 53% from last year, according to research firm Emarketer.
Other notable movers include gold, which is recovering from losses due to increased safe-haven demand, and oil prices, which slipped amid trade fears and OPEC+ supply hikes. The market will continue to monitor the developments in U.S. trade policy and their broader economic implications through the week. Investors are advised to stay informed of market updates as the situation evolves.
