Dow Jones futures trade higher despite persistent concerns over Trump's tariffs

• Dow Jones futures gains even as concerns over Trump's tariffs continue to persist.
• Investors struggle to scrutinize the absolute impact of Trump's tariffs on the economy.
• Investors await quarterly results of Tesla and Aphabet this week.

Dow Jones futures trade higher during the European trading session on Monday, signalling a positive opening for United States (US) equities after the weekend. US indices have broadly remained in a limited range from last three weeks as investors struggle to gauge the absolute impact of sectoral and reciprocal tariffs announced by President Donald Trump.

At the time of writing, Dow Jones futures gain over 0.2% higher around 44,440, S&P 500 futures rise to near 6,316 after adding 16 points.

So fat, US President Trump has imposed sectoral tariffs on imports of various products such as automobiles and a few base metals, and reciprocal levies on 22 nations, notably Japan, South Korea, Canada, Mexico, and the European Unions (EU). Still, a few of these nations are negotiation with White House officials to reach a deal before the August 1 deadline.

Washington has signed bilateral deals with a handful of nations such as the United Kingdom (UK), Vietnam, Indonesia, and a limited pact with China.

Meanwhile, uncertainty surrounding trade talks between the US and the EU has increased as US President Trump has demanded a higher baseline tariff rate on imports from the trading bloc and has shown reluctancy to reduce 25% automobile levy.

This week, investors will pay close attention to quarterly results from auto-giant Tesla and tech-giant Alphabet, which are scheduled for Wednesday.

On the monetary policy front, traders pare Federal Reserve (Fed) dovish bets after the release of the United States (US) Consumer Price Index (CPI) data for June, which showed that prices of products that are largely imported have increased after the imposition of sectoral tariffs by President Donald Trump.

According to the CME FedWatch tool, the probability for the Fed to reduce interest rates in the September meeting has declined to 58.5% from almost 70% seen a month ago.

The scenario of the Fed adopting a restrictive monetary policy stance is unfavorable for US equities.