US STOCKS-Wall St set to kick off week higher as Trump's tariffs lift steelmakers

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Updates prices before markets open

By Shashwat Chauhan and Sukriti Gupta

Feb 10 (Reuters) - Wall Street's main indexes were set for a higher open on Monday, recovering from last week's declines, as steelmakers surged after U.S. President Donald Trump said he would impose additional tariffs on steel and aluminum imports.

Trump's latest trade escalation came on Sunday when he said he would introduce 25% tariffs on all imports of steel and aluminum into the United States, on top of existing duties on the metals.

U.S. Steel X.N gained 3.6% in premarket trading after Japan's Chief Cabinet Secretary said Nippon Steel 5401.T was considering proposing a bold change in its plan to buy the company.

Shares of other steelmakers also soared, with Cleveland-Cliffs CLF.N adding 8%, and Nucor NUE.N gaining 6.7%. Aluminum producer Alcoa AA.N was up 4.3%.

Trump also said on Sunday that he would announce reciprocal tariffs on all countries on Tuesday or Wednesday, effective almost immediately, matching the tariffs levied by each country.

"We're certainly in an unmarked territory. It's not every day that an administration is so decisive with its executive powers as to take so much action altogether," said Giuseppe Sette, president of market research firm Reflexivity.

Most megacap and growth stocks also edged higher, with Microsoft MSFT.O and Apple AAPL.O up about 0.7% each.

At 08:29 a.m. ET, Dow E-minis 1YMcv1 were up 237 points, or 0.53%, S&P 500 E-minis EScv1 were up 33.75 points, or 0.56%, and Nasdaq 100 E-minis NQcv1 were up 171.25 points, or 0.79%.

All three major indexes had dropped about 1% each in the last session, nursing weekly losses after Trump had initially revealed his reciprocal tariff plans.

Expectations for the Fed's rate cuts to stay on hold in March solidified after Friday's mixed U.S. employment report. A year-on-year 4.0% unemployment rate would probably give the central bank cover to hold off cutting interest rates at least until June.

Fed officials said on Friday that the U.S. job market is solid and pointed out the lack of clarity about how Trump's policies would affect economic growth and still-high inflation.

U.S. Federal Reserve Chair Jerome Powell is due to testify before Congress on Tuesday and Wednesday. The January consumer price index reading is expected to be released in the early hours of Wednesday, before Powell's testimony the same day.

McDonald's MCD.N on Monday posted a steeper-than-expected drop in quarterly U.S. comparable sales. Shares of the fast food chain, however, rose about 1.4% in choppy trading.

Coca-Cola KO.N, DoorDash DASH.O, health insurer CVS Health CVS.N and computer-networking equipment maker Cisco CSCO.O are some of the prominent companies that are expected to report results later this week.

Among other movers, T-Mobile TMUS.O gained 3.5% after the wireless carrier said it will launch its satellite-to-cell service, powered by SpaceX's Starlink, in July for $15 a month.