Tech shares are leading the declines as we see a bit of a setback for US equities following the late Friday bounce. S&P 500 futures are down 0.5% with Nasdaq futures down 0.7% so far on the day. It’s all about Trump and tariffs as we await more trade headlines to work with in the new week/month.

The US court moved to temporarily reinstate Trump’s tariffs on Friday and he also threatened to double steel and aluminum tariffs to 50%. Adding to that, there doesn’t seem to be any progress whatsoever with China – no surprises really – and that might be a key risk trigger to watch out for. As mentioned before if Trump loses patience with China, then the supposed “truce” we’re seeing now will be upended and the trade war will be reignited again. It feels like it’s only a matter of time.

For now, the risk mood is leaning towards the softer side as we move past month-end shenanigans to start afresh in June. The focus is on trade headlines, so we’ll see what we will get from Trump later in the day.

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