(Bloomberg) — US stock futures retreated, indicating a third day of losses for the S&P 500, as traders worried about the economic implications of tariffs. The dollar weakened and bond yields rose.
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S&P 500 futures dipped 0.2% and European stocks fell. The moves were relatively muted, given China’s restrained response to US tariffs and a last-minute reprieve for Canada and Mexico. Still, the dollar index slid 0.3% as some traders flagged relief that the worst-case scenarios seem to be avoided.
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“We will be cautious in the short term until we get a good read on de-escalation on tariffs,” said Colin Graham, head of multi asset strategies at Robeco Group.
Palantir Technologies Inc. shares soared as much as 20% in US premarket trading after the software company gave a forecast that is stronger than expected, citing demand for its AI products. Traders are also awaiting earnings reports Tuesday from heavyweights including Google parent Alphabet Inc., Merck & Co. Inc. and Pfizer Inc., as well as data on US factory- and durable-goods orders.
Europe’s Stoxx 600 benchmark fell for a second day amid a flurry of mixed corporate earnings. With companies representing about a quarter of Europe’s market cap having reported by Monday, a net 11% posted a beat on earnings and 55% on sales, according to Morgan Stanley.
UBS Group AG shares dropped as concern over a potential increase in capital requirements outweighed better-than-expected results. Vodafone Group Plc dropped after the communications firm noted worsening conditions in Germany. BNP Paribas rose on a surge in trading revenue.
In commodities, crude oil declined on the worsening demand outlook. Gold hovered near a record high.
Key events this week:
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US factory orders, US durable goods, Tuesday
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Alphabet earnings, Tuesday
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Fed’s Raphael Bostic, Mary Daly, Philip Jefferson speak, Tuesday
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China Caixin services PMI, Wednesday
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Eurozone HCOB Services PMI, PPI, Wednesday
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US trade, Wednesday
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Fed’s Austan Goolsbee, Tom Barkin, Michelle Bowman, Philip Jefferson speak, Wednesday
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Eurozone retail sales, Thursday
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UK rate decision, Thursday
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US initial jobless claims, Thursday
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Fed’s Christopher Waller, Lorie Logan speak, Thursday
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Amazon earnings, Thursday
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US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
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Fed’s Michelle Bowman, Adriana Kugler speak, Friday