Early angst about Trump tariff talk fades, US equity futures turn higher

S&P 500 futures opened 30 points lower but the dip was bought almost immediately, and aggressively. The loss was halved in a minute and the bids have been steady since. Futures are now up 15 points, chewing into Friday’s cash loss of 57 points.

I think a big part of that reversal is that ‘reciprocal’ tariffs were already talked about by Trump on Friday so there’s nothing new here.

Moreover, I thought this line in the Bloomberg report about the tariffs was telling:

“While Trump could reverse course and move again to impose trade levies, the decision nevertheless reinforced the perception that the new president is unwilling to follow through on his tariff threats and instead prefers using them as a negotiating tool.”

If even the journalists now think it’s a bluff then you’re not going to fool too many people in markets.

This article was written by Adam Button at www.forexlive.com.