Wall Street Futures Climb as Tariff Exemptions Ease Market Tensions

Wall Street share futures edged higher in Asia on Monday after the White House announced exemptions on smartphones and computers from the latest U.S. "reciprocal" tariffs targeting Chinese imports. While the move temporarily eased trade tensions, market gains remained limited as President Donald Trump warned more tariffs could follow.

The exemption, which covers 20 product categories—or 23% of total U.S. imports from China—offered a short-term boost for tech manufacturers. Still, analysts remained skeptical about long-term stability. JPMorgan's chief economist Bruce Kasman cautioned that a universal 10% tax and the hefty 145% tariff on China remain significant risks, projecting a 60% chance of a U.S. or global recession.

S&P 500 futures rose 0.8%, and Nasdaq futures gained 1.25%, extending last week’s rally. Yet, markets remain below April highs when tariff tensions first escalated. Investors are now eyeing corporate earnings from major banks including Goldman Sachs and Citigroup, as well as TSMC’s results amid Trump’s push to probe the global semiconductor supply chain.

Key economic data this week includes U.S. retail sales and China's GDP. Federal Reserve Chair Jerome Powell will also speak on Wednesday, with markets eager for insights on potential rate cuts and Treasury market volatility.

In bonds, 10-year U.S. Treasury yields remained elevated at 4.49%, reflecting recent sharp increases in borrowing costs. Meanwhile, the MSCI Asia-Pacific index rose 0.6%, and Japan’s Nikkei surged 2.0% amid fluctuating trade headlines.

Currency markets remained volatile. The dollar traded at 143.72 yen and hovered near decade lows against the Swiss franc. The euro stood at $1.1334 ahead of the ECB’s expected rate cut. Gold prices remained strong at $3,218 per ounce, while Brent crude dipped slightly to $64.67 a barrel.