US Small Business Confidence Jumps to 98.8, Equity Futures Edge 0.1% Higher

Key Moments:

US Market Overview

US stock futures were mixed on Tuesday as market participants looked ahead to further developments in the ongoing trade discussions between Washington and Beijing. Nasdaq 100 futures rose 0.13% to 21,850.50, while S&P 500 e-minis advanced by 0.09%. Contracts tied to the Dow, meanwhile, were relatively flat after rebounding from a drop below the 42,700 mark.

These pre-market moves followed a subdued session on Wall Street that saw the S&P 500 inched up nearly 0.1%, extending its winning streak to a second consecutive day. The Nasdaq Composite rose approximately 0.3%, whereas the Dow finished at 42,761.76.

Eyes on Trade Diplomacy

Markets remained cautious amid today’s round of trade negotiations between the US and China. Talks were held on Monday and resumed on Tuesday morning. Investors are watching closely for signs of progress that could help avert steep import tariffs being imposed by either side.

The two economies had previously agreed to reduce levies for a 90-day window, an agreement seen as a notable step forward following the Trump administration’s proposed broad tariff offensive. However, this was followed by accusations of both parties not adhering to the deal’s conditions. He further noted that market participants were not inclined to sell stocks.

US Small Business Optimism Sees First Rise Since Last Year

American small enterprises reported a boost in their collective confidence levels during May, marking an encouraging shift in sentiment. This upturn is likely attributable to a perceived lessening of trade tensions.

According to the National Federation of Independent Business (NFIB) latest findings, the Small Business Optimism Index climbed three points in May, reaching a figure of 98.8. This increase represents the first time the index has shown an improvement since the close of the previous year.