US futures edged higher after Monday’s rout over valuations in the artificial-intelligence sector, while the dollar advanced after US President Donald Trump’s latest tariff threats.
Dollar Spot Index climbed 0.5%, with the US currency strengthening against all its Group-of-10 peers, as Trump said he wanted far larger across-the-board tariffs than the 2.5% said to be favored by new Treasury Secretary Scott Bessent. Copper fell on Trump’s comments that he planned to impose import tariffs on the metal, as well as aluminum and steel.
Nasdaq futures were up 0.2% a day after Chinese artificial intelligence startup DeepSeek roiled the market with its cheap AI model that challenged high valuations of big tech stocks. Europe’s benchmark stocks gauge added 0.2%.
Speaking to reporters on Monday night, Trump said he would soon put tariffs on foreign-produced semiconductors, pharmaceuticals and some metals to compel producers to manufacture in the country. The new administration has been debating trade levies through January.
“Bessent talking about universal tariffs across the board, and while gradual, they could go up all the way to 20% — that is a big deal,” said Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney. “The president has a protectionist agenda, not good for global growth and supportive for the dollar as the preeminent safe haven.”
Treasuries edged lower with the 10-year yield climbing two basis points to 4.55% after sinking nine basis points on Monday as investors rushed to safe havens.
The slide in the US equities Monday was triggered by a rise of DeepSeek’s latest AI model to the top of Apple Inc.’s App Store. Nvidia Corp., the poster child of the AI boom, slumped 17% in New York, wiping out $589 billion in market value, the most ever for a single stock.
“Is it time to fade yesterday’s move? Our view would be a selective yes,” Mohit Kumar, a strategist at Jefferies International Ltd. said. “We see DeepSeek and other AI developments as a positive for the macro picture as more companies and areas would have access to cheaper AI, which can help improve efficiency.”
