Steel tariffs and tit-for-tat barbs with China are weighing premarket
Stock futures are starting June off on the wrong foot. Global trade tensions are ratcheted up after China dug its heels and insisted the U.S. undermined its 90-day suspension of most tariffs. This comes after President Donald Trump on Friday claimed China “has totally violated its agreement.” Trump also announced over the weekend he would be doubling steel tariffs to 50%.
Bond yields are on the move higher in response, with the 10-year Treasury yield last seen at 4.4%. At last check, futures on the Dow Jones Industrial Average (DJIA) and Nasdaq-100 (NDX) are sharply lower, with S&P 500 Index (SPX) futures firmly in red territory as well.
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5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.3 million call contracts and over 1.3 million put contracts traded on Friday. The single-session equity put/call ratio rose to 0.57, while the 21-day moving average stayed at 0.59.
- Cleveland-Cliffs Inc (NYSE:CLF) stock is 26.4% higher before the bell, with steel stocks across the board propped up by President Trump's doubled tariffs. CLF is nursing a 38% year-to-date deficit, with a confluence of moving averages sitting overhead.
- Moderna Inc (NASDAQ:MRNA) stock is up 3.7% ahead of the open, after the drugmaker's next-gen Covid vaccine for adults 65 and older was approved by the Food and Drug Administration (FDA). Moderna stock is down 36% in 2025, and has spent the last few months rangebound.
- The shares of Nio Inc (NYSE:NIO) are up 0.6% in electronic trading, after the China-based electric vehicle (EV) automaker reported a 13% year-over-year increase in deliveries for May. NIO is deep in penny stock territory and down 18% this year.
- June kicks off with a big batch of jobs, services, and manufacturing data.
Global Uncertainty on High Alert Once Again
Asian markets were mostly lower on Monday, in response to the trade turmoil. Japan’s Nikkei and Hong Kong’s Hang Seng shed 1.3% and 0.6%, respectively, while South Korea’s Kospi eked out a 0.05% gain. Elsewhere, China’s Shanghai Composite was closed for a holiday.
European markets are hurting as well, with the potential steel tariff hike weighing on the auto sector. An EU spokesperson said the group is prepared to “impose countermeasures.” London’s FTSE 100 was last up 0.1%, the German DAX is 0.3% lower, and France’s CAC 40 is down 0.4%.