Investing.com – US Stock Futures Rise

US stock futures ticked up as markets prepared for a holiday-shortened trading week, largely influenced by President Donald Trump’s inauguration on Monday.

Trump announced several executive orders in the early hours of his second term but did not immediately impose universal import tariffs, a significant topic for financial markets. Following his swearing in, the value of Trump’s new “memecoin” began to decline after an initial rise.

1. Futures Higher After Trump Inauguration

US stock futures showed positive movement on Tuesday as investors analyzed Trump’s executive orders and anticipated upcoming corporate earnings reports.

By 03:42 ET (08:42 GMT), Dow futures gained 145 points (0.3%), S&P 500 futures rose by 15 points (0.3%), and Nasdaq 100 futures increased by 43 points (0.2%).

Wall Street was closed on Monday for Martin Luther King Jr. Day, and after the inauguration, market sentiment fluctuated; although initial relief came from the absence of new tariffs, Trump hinted at a potential 25% tariff on Canada and Mexico.

Capital Economics analysts predict continued volatility in financial markets but expect a rally in stocks and the US dollar during Trump’s first year in office.

2. Trump’s Executive Orders in Focus

Trump’s executive orders cover various issues, although he refrained from immediately imposing tariffs. Instead, he instructed federal agencies to examine ongoing US trade deficits and trade practice concerns.

Trump’s memo directed the Commerce and Treasury departments and the US Trade Representative to evaluate the economic and national security implications of trade deficits, suggesting potential remedies such as global tariffs.

Additionally, Trump signed immigration-related orders, notably one ending automatic birthright citizenship, expected to face legal challenges. He also withdrew from the Paris Climate Accord and the World Health Organization and delayed TikTok’s ban by 75 days.

Other orders sought to eliminate diversity programs within the federal government and established a new Department of Government Efficiency, led by Tesla CEO Elon Musk.

3. Trump’s Memecoin Pares Back Gains

The value of Trump’s memecoin, known as $TRUMP, slumped after reaching over $10 billion in market value post-inauguration.

Having soared from below $10 to as high as $74.59, it traded at $38.78 by Tuesday 03:43 ET. Despite assurances from the creators that these tokens are not for investment but rather a form of support, concerns about regulation have surfaced as they can raise significant funds with minimal oversight.

On another note, World Liberty Financial, linked to Trump, reportedly raised $300 million through an initial token sale. Meanwhile, Bitcoin reached a record high of $109,071 before also retreating.

4. Earnings Ahead

As traders look beyond Washington, the focus shifts to upcoming quarterly earnings from major U.S. companies.

Netflix is set to report its results after the closing bell on Tuesday, while 3M and Charles Schwab will announce earnings before Wall Street opens. Investors will closely monitor these figures to gauge market outlook amidst uncertainty surrounding Trump’s trade policies and Federal Reserve interest rate cuts.

Strong results last week from major U.S. banks reflected renewed deal-making activity, which could guide equity returns this year.

5. Oil Falls

Oil prices experienced a decline in European trading on Tuesday following Trump’s declaration of a national energy emergency aimed at bolstering US energy production.

Brent oil futures fell 0.5% to $79.79 a barrel, while West Texas Intermediate crude futures dropped 1.3% to $76.39 by 03:37 ET. However, losses were cushioned by a weakening dollar and Trump’s proposed sanctions against Venezuela, as well as recent US sanctions on Russian crude.

Focus remained on the impact of these sanctions, particularly following the ceasefire agreement between Israel and Hamas.