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(Reuters) – U.S. stock index futures slipped on Tuesday as investors sweep fresh tariff comments from President Donald Trump and new tariff comments from Nvidia.
At 05:31 AM ET, the Dow E Minis fell 28 points, 0.06%, the S&P 500 E-MINIS 12.5 points (0.21%), and the Nasdaq 100 E-Minis 81.25 points, or 0.38%.
Investors evaluated reports that the US plans to further limit the amount and type of NVIDIA chips that it can export to China without a license. The report said Washington is in talks with allies, including Japan and the Netherlands, regarding China's chip control.
Other semiconductor stocks in red included microdevice reductions by 0.8% and 0.9% reductions. LAM research and applied materials from chip gear makers also fell by 0.7% and 0.5%, respectively.
Nvidia's results on Wednesday are important for the sector as investors questioned the industry's heavy spending after news of low-cost competition with China's deepshed rattle market in January. The S&P 500 technology sector is on track for its biggest monthly decline since April.
Also, easing risk-taking, President Trump said late Monday that tariffs on imports in Canada and Mexico were “scheduled on deadlines” ahead of the March 4 deadline. The United States and China are already in a trade war.
Trump also signed an order over the weekend to limit Chinese investment in strategic sectors, including semiconductors, artificial intelligence, quantum, biotechnology and aerospace.
In addition to the potential global impact of these tariffs, investors are also wary of signs that the US economy is stalling, and the Federal Reserve is warning about further cuts in interest rates.
The three main indexes on Wall Street are poised to decline in 2025.
Interest rate futures now point to a 25 basis point reduction in July, with traders priced another reduction by the end of the year, according to data compiled by LSEG.
On the data front, the conference committee gauge for consumer confidence will be paid at 10am ET just days after the University of Michigan index showed consumer sentiment is getting worse.
Late Monday, Chicago Federal President Austan Ghoolsby said the full economic impact of the Trump administration's new policies needs to be made clearer before the Fed can act.
The market also hears the director's perspective all day long from policymakers Rory Logan, Thomas Birkin and vice-chairman Michael Barr.
