US Futures Steady as Strong Bank Earnings Offset Tariff Fears; Pharma, Semiconductors in Trump’s Crosshair – Europe Market Wrap
US stock futures pared earlier losses as solid earnings helped counter concerns about a steady stream of tariff headlines.
S&P 500 contracts were little changed after falling as much as 0.4%. Goldman Sachs and Bank of America advanced more than 1% in premarket on record-setting trading revenues. Johnson & Johnson rose 1.2% after lifting its full-year outlook. Morgan Stanley shares posted a small loss.
US Treasuries fluctuated. Japan’s super-long bonds rebounded following a sharp selloff earlier in the week, as investors weighed the potential for increased fiscal spending after this weekend’s upper house election. The dollar was little changed.
President Donald Trump signaled that tariffs on pharmaceuticals could be introduced by the end of the month, with similar measures on semiconductors potentially to follow. Traders further pared bets to their lowest level in a month for two US interest rate cuts this year, while Trump aide Kevin Hassett has emerged as the early frontrunner to replace Federal Reserve Chair Jerome Powell.
In the UK, inflation unexpectedly climbed to its highest level since early 2024, driven by rising food prices. The pound strengthened as traders scaled back expectations for further monetary easing by the Bank of England following a probable quarter-point cut in August. Gilts declined.
