US STOCKS-S&P 500, Nasdaq set for higher open as investors pin hopes on trade talks

• Futures: Dow down 0.08%, S&P 500 up 0.12%, Nasdaq up 0.31%
• Tesla stock up after steep losses in previous session
• Minutes of Fed June rate meeting due on Wednesday
• Solar stocks fall as Trump seeks to end tax credits

July 8 (Reuters) - The S&P 500 and the Nasdaq were poised for a higher open on Tuesday, as investors hoped that upcoming trade talks with trading partners could defuse the threat of a full-blown trade war, rekindled by President Donald Trump's latest tariff salvo.

On Monday, Trump warned partners from Japan and South Korea to smaller players that steep new U.S. tariffs would kick in from Aug. 1 — though he left the door open to delays if countries come forward with fresh proposals.

The Dow .DJI closed nearly 1% lower on Monday, while the S&P 500 .SPX and the Nasdaq .IXIC closed down 0.8% and 0.9%, respectively, following the tariff announcement.

Wall Street is, however, recovering. At 08:20 a.m. ET, Dow E-minis YMcv1 were down 36 points, or 0.08%, S&P 500 E-minis EScv1 were up 7.75 points, or 0.12%, and Nasdaq 100 E-minis NQcv1 were up 69.5 points, or 0.31%.

In mega-cap stocks, shares of Tesla TSLA.O rebounded 1.1% in premarket trading after the stock recorded its steepest single-day fall in nearly a month on Monday.

"The market's taking comfort from the fact that the can has been kicked further down the road and the expectation remains that the bark is a lot worse than the bite," said Ben Laidler, head of equity strategy at Bradesco BBI.

The market reaction is in stark contrast to the sharp selloff that followed "Liberation Day" tariff announcements three months ago — a rout that plunged the Nasdaq into bear territory and sent the Dow and S&P 500 into correction.

Since then, Wall Street has rebounded, with the Nasdaq and S&P 500 both notching record highs last week, buoyed by a robust labor market that helped quiet recession worries.

"We have not seen any dramatic economic consequences from big increase in tariffs," Laidler added.

The U.S. has so far reached trade agreements with only Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war.

Goldman Sachs has raised its three-, six- and 12-month return forecasts for the S&P 500, citing expectations of U.S. interest rate cuts and continued fundamental strength of major large-cap stocks as key drivers of its positive outlook.

Traders have now all but ruled out a July rate cut from the Federal Reserve, putting the odds of a September cut at around 60%, according to the CME FedWatch tool.

Minutes of the Fed's June rate-setting meeting are scheduled for release on Wednesday, which will offer investors more clarity on when the central bank might resume its policy easing cycle.

Shares of solar stocks fell after Trump on Monday directed federal agencies to strengthen provisions in the One Big Beautiful Bill Act that repeal or modify tax credits for solar and wind energy projects.

SunRun RUN.O fell 6.9% and SolarEdge Technologies SEDG.O dropped 7.4%.

Meanwhile, it's a quiet week on the economic front, with the only notable data expected on Thursday on initial jobless claims. The Fed calendar is equally sparse, featuring just two district presidents slated to speak.

Trump announces fresh tariffs