-US stock index futures rose Monday, as investors digested fresh tariff comments from President Donald Trump ahead of the release of key economic data later this week.
By 05:30 ET (10:30 GMT), Dow Jones Futures rose 120 points, or 0.3%, S&P 500 Futures gained 25 points, or 0.4%, and Nasdaq 100 Futures climbed 135 points, or 0.6%.
The main averages all sank on Friday, dragged lower by Trump's announcement that he would slap reciprocal tariffs on many countries this week, as well as soft data on employment and consumer sentiment.
Trump announces 25% tariffs on steel, aluminum
Trump on Sunday said he will announce 25% tariffs on all steel and aluminum imports to the US on Monday, just days after his 10% tariffs on China took effect.
The tariffs will be in addition to already existing duties on the metal imports, which Trump had imposed during his first term and were retained by the Biden administration, albeit at a less severe scale.
The move stands to impact imports from Canada, Brazil, and Mexico the most, given that the three are the biggest steel exporters to the US.
Still, investors were hoping that Trump would offer some relief to Mexico and Canada, given that he had last week postponed plans to impose 25% tariffs on the two, given their major role in the US supply chain.
Trump had offered tariff exemption quotas to several US allies during his previous term.
Key CPI release due this week
On the economic data slate, the focus this week is squarely on key US consumer inflation data for January, due on Wednesday.
The gauge is projected to show that headline consumer price growth cooled on a month-on-month basis in January and equaled December's annualized pace.
Sticky inflation provides the Fed with little impetus to cut interest rates - a trend highlighted by the central bank in January, when it kept interest rates unchanged.
Analysts and Federal Reserve officials have warned that Trump’s tariffs - which will be borne by US importers - could also underpin inflation in the coming months.
Federal Reserve Chair Jerome Powell heads to Capitol Hill this week, testifying before the Senate Banking Committee on Tuesday, and to the House Financial Services panel the following day.
This will be the first time he has answered lawmakers’ questions since July.
McDonald's set to report
Monday's main earnings release comes from fast food giant McDonald’s (NYSE:MCD), with numbers due from Vertex Pharmaceuticals (NASDAQ:VRTX), Coca-Cola (NYSE:KO) and S&P Global (NYSE:SPGI) due in the coming days.
Elsewhere, BP (NYSE:BP) will be in the spotlight after Reuters reported that activist investor Elliott Investment Management has acquired a stake in the energy giant.
Elliott is pushing for changes at the British oil major to boost shareholder value, Bloomberg said in a separate report on Saturday, describing the investment as “significant.”
The activist investor believes BP is undervalued, with a market capitalization of approximately £69 billion ($85.62 billion), compared to Shell’s £161 billion valuation.
Crude rebounds
Oil prices rose Monday, bouncing after three consecutive weekly declines despite President Trump's new tariff announcement on all steel and aluminum imports.
By 05:30 ET, the US crude futures (WTI) gained 1.2% to $71.85 a barrel, while the Brent contract rose 1.2% to $75.54 a barrel.
Both contracts lost nearly 2% last week after a sharp jump in US crude stockpiles, as well as concerns about a global trade war.
The resulting uncertainty and potential tightening of global supply are contributing to the current rise in oil prices.
