The S&P 500 Futures Remain Stable While Trump Buys Time – Europe Market Wrap

US market futures rose as early concerns about the Trump administration’s latest tariff pronouncements were replaced by hope that there is plenty of room for additional negotiations.

S&P 500 contracts edged higher as the benchmark fell from a record high in the previous session. Tesla shares rebounded 1.2% in early trade, leading advances among tech megacap stocks. Global bonds fell, with the US 10-year Treasury yield rising 3 bps to 4.41%. The Dollar edged down.

Stocks held steady on Tuesday, reflecting traders’ belief in a similar trend of Trump increasing his trade battle only to de-escalate it later. In the latest round, Trump stated that he was still open to negotiations and postponed charges of 25% or more on a list of trading partners until at least August 1st.

Ongoing negotiations with the EU are likely to receive special focus. The group hopes to reach a preliminary agreement this week that will lock in a 10% tariff rate beyond August 1st while a permanent solution is worked out.

The anticipation of a better-than-expected trade deal has boosted the Euro. The common currency surged 0.3%, extending its year-long gains, as markets reacted to a Politico story that stated the US offered a proposal that would preserve the 10% baseline tariffs but exempt sensitive industries.