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Nasdaq Futures- China Retaliates as Trump Sparks New Trade War
Nasdaq Futures– U.S. stock futures edged lower on Sunday night as investors reacted to renewed geopolitical tensions and fresh tariff plans from former President Donald Trump. Dow Jones futures declined 0.5%, while the S&P 500 and Nasdaq futures dropped 0.6% and 0.65%, respectively. The news comes on the back of a volatile week in markets, with major indices posting gains despite sharp intraday swings triggered by fluctuating tariff headlines.
Trump’s announcement to double tariffs on steel and aluminum imports to 50% sparked concerns across industries reliant on those materials. The decision is set to take effect on June 4 and adds to the uncertainty in U.S.-China trade relations, especially after Beijing and Washington recently agreed to a 90-day tariff reduction.
Trump’s Tariffs and China Trade Tensions
New Tariffs Target Manufacturing Inputs
Late Friday, Trump declared via Truth Social that he would double existing tariffs on key materials such as steel and aluminum, citing national interest and trade violations. The move could increase costs for U.S. construction and manufacturing firms already navigating high inflation and global supply chain disruptions.
Accusations and Denials Between the U.S. and China
Trump also accused China of “totally violating” the recent trade truce. Although no specific evidence was provided, reports suggest slow Chinese approval for rare earth exports is the main point of contention. In response, China claimed the U.S. breached its commitments by expanding semiconductor restrictions and pledged to revoke certain student visas as retaliation.
This exchange marks a significant escalation in trade rhetoric and could influence global markets further in the coming weeks.
Key Stocks to Watch Amid Market Volatility
Palantir Technologies (PLTR)
Palantir shares surged 7.7% on Friday to close at $131.78 in heavy trading volume. The move pushed the stock above its cup-with-handle buy point of $125.25. According to a report by The New York Times, the Trump administration may rely on Palantir’s data analytics platform to facilitate interagency data sharing—a potential catalyst for further gains.
Nvidia (NVDA)
Nvidia rose 2.9% last week, closing at $135.13. Although the stock briefly climbed to $143.49 on Thursday after reporting earnings, it pulled back below its $137.40 handle buy point. The company’s Q2 revenue guidance came in slightly light, largely due to tightened AI chip export rules. CEO Jensen Huang, however, remained optimistic about long-term demand for AI technologies.
Market participants are closely watching any additional U.S. regulations that may affect Nvidia’s global sales—particularly in China, where export restrictions have been mounting.
Tesla (TSLA)
Tesla shares posted a weekly gain of 2.1%, ending Friday at $346.46. The stock briefly broke above a $354.99 early entry point midweek but gave up those gains amid broader market weakness. Chinese EV competitors reported their May sales on Sunday, signaling an intensifying price war in the region.
Meanwhile, a limited robotaxi launch by Tesla is expected on June 12, potentially offering new momentum if well received by investors.
Broader Market Performance in May
Monthly Index Gains
All major indices recorded strong monthly gains for May:
- Dow Jones Industrial Average: +3.9%
- S&P 500: +6.15%
- Nasdaq Composite: +9.6%
- Russell 2000: +5.2%
The Nasdaq approached all-time highs but faced resistance near recent peaks. The Dow remains below its 200-day moving average, while the S&P 500 has been relatively stable despite short-term volatility.
Treasury and Commodity Markets
The 10-year U.S. Treasury yield declined by nine basis points to 4.41%, signaling sustained demand for government bonds amid geopolitical risk. In the energy sector, U.S. crude oil prices fell 1.2% last week, despite a 3% surge on Sunday following news that OPEC+ would increase production for a third consecutive month.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
