The stock market is waiting anxiously for the next move on tariffs as China’s retaliation to levies from the U.S. has put markets on edge amid fears of an escalating tit-for-tat trade war between the two powers.

U.S. stock index futures were subdued on Tuesday as investors avoided risky assets after China struck back with retaliatory tariffs in response to new U.S. restrictions against Chinese goods. Minutes after U.