Dow Jones Futures extend losses with trade uncertainty weighing on sentiment

• Dow Jones Index Futures point to a slightly negative opening with tariff fears looming.
• Trump postponed the deadline to August 1 and kept the door open for negotiations, which has eased risk aversion.
• A cautious market mood is weighing on equities and supporting the US Dollar and Treasury yields on Tuesday.
  

Dow Jones Index Futures point to a slightly negative opening on Tuesday following a significant decline on Monday. Futures markets anticipate a 0.15% decline in the DJIA, while the Nasdaq Index futures add 0.15% and the S&P trades flat ahead of the opening bell.

Investors remain wary of risk amid Trump's erratic trade policy. The US administrations sent letters to a batch of countries, including Japan and South Korea, confirming levies of 25% to the second and third major US partners in Asia.

The US president, however,  postponed the implementation day to August 1, and kept the door open to adjustments if a trade deal is reached, which left markets wondering which taxes will finally be applied and when.

The latest tariff developments have contributed to easing the risk-averse sentiment seen on Monday, which triggered a nearly 1% drop on the Dow Jones Index, extending its reversal from last week's four-month highs above 44,800 to session lows below 44,200.

The sour market sentiment is providing some support to the safe-haven US Dollar, which maintains a moderately bid tone on Tuesday, with the USD Index moving near 97.00, supported by rising US Treasury yields.

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