Trump’s Day One – US Market Wrap

Wall Street breathed a collective sigh a relief after Donald Trump held off from imposing China-specific tariffs on his first day in office, pushing US equity futures higher. The dollar slumped.

Pivoting away from a full-blown trade war, Trump plans to issue a broad memorandum that directs federal agencies to study existing trade policies and relationships with China, Canada and Mexico, the Wall Street Journal reported earlier Monday.

After being sworn into office, the president promised to sign a series of executive orders, including one that declares a national emergency at the U.S.-Mexico border. For now though, the executive action will not include new tariffs on the three biggest US trading partners.

Signs that the president may pursue a less protectionist approach, for now, is a boon for multinational companies that rely on cross-border commerce, giving them time to adjust pricing and mitigate any impact to profit margins.

S&P 500 contracts rose 0.4%, with Wall Street closed Monday for a holiday. A gauge of the US dollar dropped around 1%, extending a retreat from the 13-month high it reached earlier in January.