Trump’s Trade War Escalation Causes Stock Futures to Drop – Europe Market Wrap
US equities were set to fall from a record high as Trump stepped up his trade attack.
S&P 500 contracts fell 0.6% after Trump announced plans to levy 15% or 20% tariffs. Europe’s Stoxx 600 dipped for the first time this week. Nvidia fell 0.6% in premarket trade, following the AI bellwether’s closing valuation of $4 trillion.
The Dollar climbed versus most major peers, with the Yen falling the most sharply. Treasury yields rose throughout the curve. Bitcoin continued its record climb to nearly $118,000, indicating that some investors were still willing to take on risk.
Trump escalated trade tensions on Thursday, putting a 35% penalty on select Canadian goods. Vietnam’s leadership was taken off guard when Trump announced last week that it had agreed to a 20% tariff. Meanwhile, letters to EU members are anticipated to be issued soon.
The Pound fell 0.4%, marking the sixth straight session of losses and the worst run this year, as a second consecutive monthly decline in the UK economy prompted traders to gamble on more losses.
