Futures tracking US equities advanced as markets reassessed inflation risks stemming from tariffs and the war in Iran. The three major indexes were up between 0.3% and 0.6%. Treasury Secretary Bessent said global tariffs would be raised to 15% this week, with further increases expected by the fourth quarter. However, inflationary pressures eased slightly as fuel commodities paused their recent surge, after Bessent signaled forthcoming measures to curb rising fuel costs.
The pause followed an attack on a container ship in the Strait of Hormuz, which deepened skepticism over President Trump’s assurances of insurance coverage and protection for tankers passing through the key shipping corridor. Yields fell across the curve as markets briefly moved to price in a cap on risks from energy shocks and tariffs, while the heavyweight tech sector stabilized after last month’s losses. Broadcom gained 1.5% in premarket trading ahead of its earnings release tomorrow. In contrast, banks and asset managers came under pressure amid renewed concerns about vulnerabilities among major private credit firms.
