US stock futures rise on report of gradual Trump tariffs

U.S. stock index futures rose on Monday evening as fears of overly disruptive trade tariffs under President-elect Donald Trump were eased by a report that his team was considering a gradual increase in duties.

But gains in futures were tempered by continued caution over a slower pace of interest rate cuts in 2025, with inflation data due this week set to offer more cues after a string of hawkish signals. Major bank earnings are also on tap this week.

Futures rose after a mixed session on Wall Street, where gains in cyclical stocks only marginally offset persistent losses in technology. U.S. stocks were also nursing a weak start to the year.

S&P 500 Futures rose 0.3% to 5,892.50 points, while Nasdaq 100 Futures rose 0.5% to 21,046.25 points by 18:13 ET (23:13 GMT). Dow Jones Futures rose 0.2% to 42,607.0 points.

Trump team considering gradual tariff hike- Bloomberg
Trump’s economic team is considering a program of gradual increases in import tariffs over the coming months, Bloomberg reported on Monday, with the proposal aimed at enhancing leverage with trading partners and preventing a sudden increase in inflation.

The plan- which has not yet been presented to Trump- involves a schedule of 2% to 5% increases in tariffs per month, and will be implemented under the executive authority of the International Emergency Economic Powers Act.

Trump- who will take office on January 20- has vowed to impose steep trade tariffs on several major economies, especially China, from “day one” of his term. He vowed to impose a minimum 10% to 20% tariff on all imported goods, and a 60% tariff on China.

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Recent reports said he could also declare a national economic emergency to carry out this plan.

Fears of increased import duties had sparked increased risk aversion on Wall Street, especially as Federal Reserve officials also warned the duties could underpin inflation and keep interest rates high in the long term.

But Monday’s report helped quell some of these concerns, although it still remained to be seen whether Trump would consider the plan.

Wall St mixed with earnings, inflation on tap
Wall Street indexes pared some of their Monday losses to clock a mixed finish.

The S&P 500 rose 0.2% to 5,836.0 points, while the Dow Jones Industrial Average rose 0.9% to 42,297.12 points on Monday, with both indexes rebounding from over two-month lows. The NASDAQ Composite lagged, falling 0.4% to a near two-month low of 19,087.82 points, although it did pare some of its intraday losses.

Focus this week is squarely on consumer price index inflation data for December, due on Wednesday. The reading is set to offer more cues on interest rates after strong payrolls data from last week cemented bets on a slower pace of Fed rate cuts this year.

The earnings season is also set to begin in earnest on Wednesday, with prints due from several major Wall Street banks- including JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Goldman Sachs Group Inc (NYSE:GS), and Citigroup Inc (NYSE:C).