U.S. Stock Futures Hold Steady Amid U.S.-China Trade Tensions and Powell’s Dovish Remarks

U.S. stock index futures were steady on Tuesday evening following a volatile Wall Street session, as investors assessed renewed U.S.-China trade tensions, major bank earnings, and comments from Federal Reserve Chair Jerome Powell.

S&P 500 Futures hovered near 6,686.75 points, while Nasdaq 100 Futures slipped 0.1% to 24,745.75 points. Dow Jones Futures remained flat at 46,498.0 points. In regular trading, the S&P 500 edged 0.2% lower, the Nasdaq Composite dropped 0.7%, and the Dow Jones Industrial Average added 0.4%.

Market sentiment has grown more cautious after President Donald Trump threatened 100% tariffs on Chinese goods in retaliation for Beijing’s restrictions on rare earth exports. Tensions escalated as Trump accused China of “purposefully not buying” U.S. soybeans and floated cutting trade ties in the cooking-oil sector, calling Beijing’s actions “economically hostile.” In response, China sanctioned five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, a move seen as retaliation amid a U.S. probe into China’s shipbuilding dominance. Both nations have also imposed reciprocal port fees, intensifying maritime trade friction.

Amid the tense backdrop, Powell’s remarks at the National Association for Business Economics provided some relief. He noted that the outlook for inflation and employment remains broadly unchanged since September but acknowledged signs of a softening labor market. His comments were perceived as dovish, bolstering expectations for additional rate cuts later in 2025.

Earnings season also added to the market’s mixed tone. Goldman Sachs reported strong investment banking results, while JPMorgan raised its full-year net interest income forecast. Wells Fargo also topped profit estimates on improved credit performance. Investor focus now shifts to upcoming reports from Bank of America and Morgan Stanley, which could further influence market momentum.