Traders work on the floor of the New York Stock Exchange during afternoon trading on Aug. 2, 2024.
Michael M. Santiago | Getty Images
Stock futures slipped in overnight trading Monday, after the Dow Jones Industrial Average closed at a new record.
Futures tied to the Dow slid 144 points, or 0.3%. S&P 500 futures fell 0.4%, and Nasdaq 100 futures dropped 0.5%.
On Monday evening, President-elect Donald Trump called for a 25% tariff on products from Mexico and Canada, as well as an additional 10% levy on Chinese goods. He has already said he would impose a tariff of up to 20% on all imports, and an additional duty of at least 60% on products from China.
Stocks are coming off an action-packed session fueled by Trump’s new Treasury secretary pick, hedge fund executive Scott Bessent. The gains helped refuel the belief that the postelection rally is back in full gear following a brief breather.
The 30-stock Dow popped roughly 440 points, or about 1%, to a new record close during regular trading. The S&P 500 gained 0.3% to notch a new all-time intraday high, while Nasdaq Composite edged up about 0.3%. The Russell 2000 hit a new intraday high — its first record since 2021 — as investors piled into small caps.
Meanwhile, Treasury yields fell as traders took a favorable view of Bessent leading the Treasury department. Many investors view the hedge fund manager as a champion of financial markets and the economy given his background, and as someone who could potentially counteract some of Trump’s aggressive trade aspirations.
“These policies may take more time to play through into the market actually get enacted,” NewEdge chief investment officer Cameron Dawson told CNBC’s “Closing Bell” on Monday of potential new policies from the Treasury pick. “It’s definitely a question mark of how much impact he can have in the short run as we round the year.”
The U.S. market is closed Thursday for the Thanksgiving holiday and set to close early Friday, with volume expected to remain light. Ahead of the holiday, investors are looking ahead to October’s personal consumption expenditure price index.
