A whole new Trump trade opened up over the weekend as the U.S. opened talks to end the war between Russia and Ukraine, prompting European countries to revisit their thinking on how much they spend on security and defense.
At the same time, President Donald Trump said last week that he wants to spend a lot less. That’s hurting U.S. defense stocks and bolstering European ones. Overall, though, U.S. stocks are poised to go higher on Tuesday as U.S. and Russian representatives meet in Saudi Arabia.
Investors stateside will still be pleased that Trump has delayed implementing new tariffs, which threaten to bolster prices and slow economic growth if they come into effect. For now, stocks are marching higher, lifted once again by the booming technology sector and optimism about the potential of artificial intelligence to bolster future earnings.
Futures for the Dow Jones Industrial Average added 54 points, or 0.1%. Contracts tied to the S&P 500 rose 0.3%, while those tied to the technology-heavy Nasdaq 100 increased 0.4%. The S&P 500 closed Friday at 6,114.63, within 5 points of its record high.
Important events this week include the Wednesday publication of Federal Reserve minutes from the January meeting, when policy makers kept interest rates unchanged and signaled a pause in further rate cuts for the coming months. Retailer Walmart reports earnings on Thursday.
Bond yields were staying lower early Tuesday. The 10-year Treasury yield was at 4.514%, down from above 4.6% last week. The two-year note was at 4.28%, compared with levels above 4.35% last week.
