Dow, S&P 500 futures tumble after Trump tariffs announcement
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More news: Major US stock index futures have tumbled after US President Donald Trump unveiled sweeping reciprocal tariffs on countries around the world in an announcement after the US market close. E-mini Dow Jones Industrial Average Index Futures were down 0.58% in after-market trading after earlier closing 0.56% higher. E-mini S&P 500 Index Futures were down 1.52% after closing up 0.67%.
The broad-based tariff announcements have raised fears of a global trade war that could spark a US economic slowdown and spur inflation.
Australian shares to open higher after Wall Street gains, Trump reveals tariffs
The news: The Australian sharemarket is set to open higher despite US President Donald Trump announcing sweeping global reciprocal tariffs. Wall Street finished higher.
The numbers: Updated at 7.25am AEDT:
- ASX futures: up 42 points or 0.53% at 8,019 points
- Wall Street: Dow Jones up 0.56%, S&P 500 up 0.67%, Nasdaq up 0.87%
- Europe: FTSE 100 down 0.30%, CAC 40 down 0.22%, DAX down 0.66%
- Spot gold: up 0.74% to USD3,136.28 per ounce
- Oil prices: Brent up 1.05% to USD75.27/bbl, US WTI up 1.19% to USD72.05/bbl
- AUD: down 0.02% at 62.77 US cents
- Bitcoin: up 0.92% to USD85,769.20.
The context: Trump mentioned a range of countries and new tariffs, and said Australia's beef exports to the US would be among those triggering reciprocal tariffs. Australia is facing a 10% tariff.
Earlier, all three major US stock indices closed higher after a choppy trading session as investors positioned themselves ahead of the announcements. Tesla shares jumped 6.4%, despite the EV maker reporting a 13% drop in first-quarter deliveries after media reports that Trump has told members of his Cabinet that billionaire ally Elon Musk will soon step back from his government role. Its advance also helped the consumer discretionary index, making it the best performing of the 11 S&P sectors.
What to watch: International Trade in Goods data for February at 11.30am; RBA releases its Financial Stability Review at 11.30am.
The source: Bloomberg
