(Reuters) – The term contracts on the American stock market index increased on Wednesday, bouncing after a sale during the previous session, after a senior official said that President Donald Trump could reduce the rates he imposed on the best business partners in the country.
Late Tuesday, trade secretary Howard Lunick said that Trump, who imposed 25% tariffs in Canada and Mexico, planned to grant a certain relief on imports, such as cars and autoparts, which comply with the American-mexican free trade agreement.
In trading before the market, Ford increased by 2.6%, General Motors added 5.4%and Tesla gained 1.8%, after a drop in net reductions in the previous session.
“If Lutnick’s comments on the relief of prices for Canada / Mexico holds, it would facilitate some of our concerns,” said Mohit Kumar, chief economist in Europe at Jefferies.
Investors also welcomed Trump’s commitment to extend his tax discounts in 2017, which has undergone the feeling of the market since its electoral victory in November. He reiterated his tax reduction plans on Tuesday in an address in the congress, where he said that “America is back”.
At 5:28 am he, Dow E-Minis increased by 242 points, or 0.57%, S&P 500 E-Minis increased by 36.5 points, or 0.63%, and the NASDAQ 100 E-Minis increased by 151.5 points, or 0.74%.
The term contracts according to the Russell 2000 index focused on the national level increased by 1.2%.
Trump intensified a world trade war on Tuesday when he imposed prices on the best business partners, citing ineffective border controls. Analysts expect their policies to have inflation pressure, slow down the economy and eat in business profits, at a time when several reports have suggested a cooling economy.
The S&P 500 benchmark dropped by about 6% compared to its record, while the Nasdaq, heavy of technology, has almost confirmed a decrease of 10% compared to its peak.
In terms of data, the National Employment Report of ADP and the ISM service sector survey will be at home later during the day. The FED should also unveil its beige book at 2:00 p.m., which will highlight the uncertainty of the Impact price on the world’s greatest economy.
Traders now see the central bank lowering borrowing costs for the first time this year in June, according to data compiled by LSEG.
Megacaps such as Amazon.com and Meta have advanced about 1% each.
Nvidia flea manufacturers increased by 1.4%and Broadcom jumped 2%, while Intel climbed 1.1%. Investors have evaluated Trump’s remarks because he said that legislators should get rid of a historic Bipartisan law 2022 on subsidies to the semiconductor industry.
Crowdsstrike dropped 8.2% after the cybersecurity company provided for the first quarter income slightly lower than estimates, due to low expenses on its cybersecurity products.
