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Updates with prices

By Pranav Kashyap and Nikhil Sharma

July 8 (Reuters) - Futures tracking the S&P 500 and the Nasdaq inched higher on Tuesday as investors assessed U.S. President Donald Trump's latest tariff salvo and pinned their hopes on fresh negotiations with key trading partners to stave off a full-blown trade war.

On Monday, Trump notified 14 nations, including Japan, South Korea, Laos and Myanmar that they would face duties ranging from 25% to 40%.

Wall Street reacted negatively to the news, with the Dow .DJI closing nearly 1% lower on Monday, while the S&P 500 .SPX and the Nasdaq .IXIC closed down 0.8% and 0.9%, respectively.

However, the postponement of the tariff implementation to Aug. 1 has offered a negotiation window, an opportunity for economies to work out favorable terms to soften the blow of steep levies.

At 07:01 a.m. ET, Dow E-minis YMcv1 were down 36 points, or 0.08%, S&P 500 E-minis EScv1 were up 7.5 points, or 0.12%, and Nasdaq 100 E-minis NQcv1 were up 58.25 points, or 0.25%.

"Trump has re-ignited his threat... but again, he's given another concession and pushed back the period. That is conceding to the fact that he wants to achieve these trade deals. It's in his best interest as well as everyone else's," said Daniela Hathorn, senior market analyst at Capital.com.

Trump in April capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. In the same month, the Nasdaq was knocked into bear market territory, while the Dow and S&P 500 had confirmed a correction.

But Wall Street has since staged a comeback. Last week, the Nasdaq and the S&P 500 soared to record highs, fueled by a resilient labor market that alleviated recession fears.

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.

In mega-cap stocks, shares of Tesla TSLA.O rebounded 1.2% in premarket trading after the stock recorded its steepest single-day fall in nearly a month on Monday.

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 5.1% and SolarEdge Technologies SEDG.O slipped 5.2%.

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.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Shinjini Ganguli)

((pranav.kashyap@tr.com; +919886482111;))