Markets Surge Amid Tariff Exemptions; Economic Uncertainty Looms

Wall Street futures rose in Asia after smartphones and computers were exempted from U.S. tariffs. Despite gains, confusion persists due to policy shifts. Analysts remain cautious, predicting possible recession. Major banks report earnings, while key economic data and speeches may influence markets, amid fluctuating currency and commodity dynamics.

Wall Street share futures saw an upswing in Asian markets on Monday following the White House's decision to exempt smartphones and computers from "reciprocal" U.S. tariffs. The announcement of potential levies on semiconductors, however, curtailed gains as President Donald Trump indicated such tariffs might be enforced soon.

The exemption of 20 product categories, amounting to 23% of all U.S. imports from China, was initially hailed by manufacturers. Yet, the erratic tariff policy has left investors and analysts skeptical about long-term impacts. "The post-Liberation Day reversal offered temporary relief, but a 10% universal tax remains a shock," said Bruce Kasman of JPMorgan.

While European and U.S. futures showed mixed responses, the market braces for critical earnings reports and economic releases this week. Federal Reserve Chair Jerome Powell is expected to address rate cut prospects amid recent Treasury market stress. Meanwhile, the global currency markets continue experiencing fluctuations driven by trade policy concerns.

(With inputs from agencies.)