Investing.com - U.S. stock futures inch up on Monday, pointing to a positive start to a week that is likely set to feature new developments in President Donald Trump's trade policy, as well as all-important inflation data and testimony from Federal Reserve Chair Jerome Powell. While flying to the NFL's Super Bowl championship game over the weekend, Trump said he would announce 25% tariffs on all steel and aluminum imports into the U.S. this week, in the latest escalation of his push to overhaul America's approach to international trade.
1. Futures higher
U.S. stock futures ticked higher on Monday, as investors assessed fresh tariff comments from President Donald Trump and looked ahead to key economic data this week.
By 03:23 ET (08:23 GMT), the Dow futures contract had gained 80 points or 0.2%, S&P 500 futures had dipped by 17 points or 0.3%, and Nasdaq 100 futures had shed 108 points or 0.5%. 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.
Over the weekend, Trump said that he would impose additional 25% tariffs on all steel and aluminium imports into the U.S. (more below).
Highlighting the economic calendar this week is the release of crucial U.S. inflation data 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.
2. Trump says he will announce new steel and aluminum duties
Speaking to reporters on Air Force One on Sunday, Trump said he will announce the 25% steel and aluminum tariffs on Monday, followed by reciprocal tariffs on many countries on Tuesday or Wednesday, with both duties to be effective immediately.
Trump’s comments come just days after his 10% levies against China took effect, with some analysts suggesting he may be adopting a tougher trade policy to help push through his broader international agenda. Beijing later retaliated with a slew of its own tariffs.
The president also threatened 25% tariffs against Canada and Mexico last week, but postponed them after he received assurances from the two countries around tightening border security.
Canada, Brazil, Mexico, South Korea, and Vietnam are the biggest exporters of steel to the U.S., government data showed. Canada is also by far the biggest exporter of aluminum to the U.S.
In his first term, Trump imposed 25% tariffs on steel and 10% tariffs on aluminum, but subsequently granted duty-free quotas to allies such as Canada, Mexico, and Brazil.
3. Trump administration examining U.S. Treasury debt payments for possible fraud
Separately, Trump also told reporters on Air Force One that the White House is investigating U.S. Treasury debt payments for potential fraud and posited that America's $36.2 trillion debt pile may not be that big.
Officials had been looking through payment records in a bid to identify wasteful spending but have instead pivoted their focus to the debt payments, Trump said.
He added that "it could be that a lot of those things don't count," noting that "some of that stuff that we're finding is very fraudulent" and "therefore maybe we have less debt than we thought." However, it remained unclear what exact payments made by the Treasury Department Trump was referring to.
The comments come as Trump and fellow members of his Republican party in Congress may face the task of approving more borrowing sometime this year. In the past, Trump has suggested the U.S. could default on its debt payments, an event which would potentially upend global financial markets.
4. Chinese inflation data
China’s consumer inflation accelerated in January, reflecting some increased demand during the Lunar New Year holiday season, government data showed on Sunday.
Consumer prices in the world's second-largest economy grew by 0.7% month-on-month in January. The reading was slightly softer than expectations for a 0.8% rise, but quickened sharply from being flat in December.
On a year-on-year basis, CPI grew 0.5%, above forecasts of 0.4%, and compared with December's 0.1% rise.
However, factory-gate prices continued their downward trajectory, pointing to persistent deflation in the industrial sector. Some analysts have suggested that the trend could ratchet up the pressure on Beijing's ongoing drive to bolster sputtering economic growth, which faces fresh challenges from Trump's tariffs.
5. Gold hits record high
Gold prices touched fresh record highs on Monday, buoyed by safe haven demand after Trump said he would announce more trade tariffs.
While the yellow metal was sitting on strong gains and record highs notched over the past week, bigger gains were somewhat limited by resilience in the U.S. dollar, with traders bracing for relatively elevated interest rates in the coming months.
Analysts and Federal Reserve officials have warned that Trump’s tariffs, which will be borne by U.S. importers, could underpin inflation and give the Fed less impetus to cut interest rates.
Elsewhere, oil prices also rose Monday, erasing some losses after three consecutive weekly declines. Both U.S. crude futures and Brent dropped by almost 2% last week following a sharp jump in U.S. crude stockpiles, while traders were also fretting over the implications of renewed global trade tensions.
(Reuters contributed reporting.)