By Investors Hub
The major U.S. index futures are pointing to a lower opening on Tuesday, with stocks likely to move back to the downside following the rebound seen in the previous session.
Renewed skepticism about a trade deal between the U.S. and China may weigh on the markets following President Donald Trump?s comments in an interview with the Wall Street Journal.
In the interview published Monday, Trump told the Journal it was “highly unlikely” he would delay an increase in tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent.
Trump also suggested the U.S. could slap 10 percent tariffs on iPhones and laptops imported from China, likely contributing to a pullback by shares of Apple (AAPL).
The comments from Trump come just days before he is due to meet with Chinese President Xi Jinping at a G20 summit in Argentina later this week.
Trump has previously argued his tough talk on trade has actually helped the U.S. to make deals, including the new trade agreement between the U.S., Mexico, and Canada.
Stocks showed a strong move to the upside during trading on Monday, regaining ground following the sell-off seen last week. The major averages fluctuated over the course of the session but remained firmly in positive territory.
Going into the close of the trading, the Nasdaq and the S&P 500 reached new highs for the session. The Dow surged up 354.29 points or 1.5 percent to 24,640.24, the Nasdaq soared 142.87 points or 2.1 percent to 7,081.85 and the S&P 500 jumped 40.89 points or 1.6 percent to 2,673.45.
The rebound on Wall Street came as some traders looked to pick up stocks at reduced levels on the heels of the recent weakness.
The drop seen during last Friday’s holiday-shortened session dragged the Dow and the S&P 500 to their lowest closing levels in four and six months, respectively.
A sharp drop in crude oil prices has weighed on the markets recently along with concerns about the global economic outlook.
Trading activity was somewhat subdued, however, with traders looking ahead to a meeting between President Donald Trump and Chinese President Xi Jinping later this week.
Trump and Xi are due to meet at the G20 summit in Buenos Aires, Argentina, beginning on Friday, with traders likely to keep a close on eye out for signs of progress on a potential trade deal.
A lack of economic data also kept some traders on the sidelines, although reports on consumer confidence, new home sales, and personal income and spending are likely to attract attention in the coming days.
Traders are also likely to keep an eye on remarks by Federal Reserve Chairman Jerome Powell as well as the minutes of the Fed’s latest monetary policy meeting.
Software stocks showed a significant move to the upside on the day, driving the Dow Jones Software Index up by 2.7 percent. The index continued to recover after hitting a nearly five-month closing low last Tuesday.
Considerable strength was also visible among banking stocks, as reflected by the 2.3 percent jump by the KBW Bank Index.
Retail stocks also turned in a strong performance amid positive reports about Black Friday sales, with the Dow Jones Retail Index surging up by 2.3 percent.
Computer hardware, biotechnology, and semiconductor stocks also saw considerable strength, while notable weakness emerged among tobacco and steel stocks.
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