Stocks- Futures Rise on Hope of Auto-Tariff Pause, Even After Trump Bans Huawei
U.S. futures rose on Thursday amid reports that the White House will wait for six months to increase auto tariffs on car imports from Europe and Japan, even as U.S. President Donald Trump exacerbated the trade war with China and declared an effective ban on Huawei products from the U.S. market.
Dow futures surged 83 points or 0.3% by 6:40 AM ET (10:40 GMT), while S&P 500 futures was up 9 points or 0.3%. Tech-heavy Nasdaq 100 futures gained 25 points or 0.3%.
Trump declared a national emergency on Wednesday and prohibited U.S. companies from using telecom services that are owned, controlled or directed by a foreign adversary, which would effectively ban Chinese-owned technology company Huawei from selling its chips on the American market.
Qualcomm (NASDAQ:QCOM) fell 0.2% in premarket trading after the news, as the company uses Huawei chips in many of its products, while Micron (NASDAQ:MU) dipped 0.8%.
Still, markets were relieved from reports that the U.S. is drafting an executive order that would allow the E.U. and Japan to agree to voluntary restrictions on auto imports instead of increased tariffs, according to Bloomberg.
Meanwhile worry over China dumping its U.S. debt regained after Beijing sold the most U.S. Treasury's in almost two-and-a-half years in March, taking their total holdings to $1.1 trillion.
Uber (NYSE:UBER) inched up 0.1%, while Cisco Systems (NASDAQ:CSCO) surged 3.4% after its earnings beat estimates, and Facebook (NASDAQ:FB) was up 0.5%. Walmart Inc (NYSE:WMT) fell 0.2% after its earnings report missed revenue estimates.
On the economic front, housing starts, weekly jobless figures and the Philadelphia Fed Business Outlook are all out at 08:30 AM ET (12:30 GMT).
In commodities, crude oil rose 0.8% to $62.52 a barrel amid rising tension in the Middle East, while gold futures fell 0.2% to $1,294.85 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, inched down 0.1% to 97.355.