Os future of the main rates of Wall Street on Wednesday (5), recovering from the losses of the previous session, after an American authority said that the president Donald Trump can relieve the tariffs which imposed on the main business partners of the country.
On Tuesday (4), US Secretary of Commerce, Howard Lutnick, said Trump, who imposed 25% tariffs on Canada e Mexicoconsidering the possibility of granting any relief to imports that are in accordance with the free trade agreement between the three countries.
In pre-opening negotiations, Ford rose 2.6%, General Motors advanced 5.4%and Tesla earned 1.8%after registering sharp falls in the previous session.
“If Lutnick’s comments about the concession of relief in Canada and Mexico tariffs remain, it would alleviate some of our concerns,” said Mohit Kumar, chief economist for Jefferies Europe.
Investors also welcomed Trump’s commitment to extend his 2017 tax cuts, which has been driving the market confidence since his electoral victory in November.
He reiterated his tax cut plans in a speech to Congress on Tuesday, where he said “America is back.”
The future of S&P 500 up 0.6%, while Nasdaq 100’s future contract was up 0.75%, and Dow Jones’s future advanced 0.57%.
Trump intensified the global trade war on Tuesday by imposing tariffs on leading US business partners, citing ineffective border controls.
Analysts expect their trade policies to increase inflationary pressures, slow down the economy, and corrode the profits of companies at a time when several reports suggest a cooling of the economy.
In front of data, the ADP report on the private sector and ISM service sector research will be focused on Wednesday.
