Stock futures were in the red on Sunday, with markets cautiously preparing for a data-heavy week amid concerns over President Donald Trump’s potential announcement of new tariffs.
Dow Jones futures dropped by 62 points, or 0.14%.
S&P 500 futures decreased by 0.18%, and Nasdaq 100 futures fell by 0.26%.
Trump revealed on Sunday that he plans to announce a 25% tariff on all steel and aluminum imports starting Monday, according to a Bloomberg report. While the exact timing of the tariffs was not specified, the President also indicated that retaliatory tariffs would be levied on countries imposing taxes on U.S. imports. This announcement comes just as Trump’s previously planned duties on China were set to take effect at midnight Sunday.
The tariff announcement adds to growing market jitters, which are already amplified by upcoming economic reports. Notably, the January Consumer Price Index (CPI) report is expected to be released on Wednesday at 8:30 AM ET, followed by weekly jobless claims and the Producer Price Index (PPI) on Thursday. Additionally, Federal Reserve Chair Jerome Powell will testify before Congress on Monday, further heightening market anticipation.
Lydia Boussour, a senior economist at EY-Parthenon, noted that “steep tariffs and heightened policy uncertainty could lead businesses to adopt a wait-and-see approach, potentially resulting in slower hiring, weaker incomes, and restrained consumer spending, compounded by higher inflation.”
With inflation concerns lingering and the impact of Trump’s tariff plans on the economy remaining unclear, investors are also focused on the corporate earnings season, with McDonald’s set to report earnings on Monday and Coca-Cola following on Tuesday.
As the week progresses, market participants will closely monitor inflation data, job reports, and corporate earnings, while also adjusting to the potential economic consequences of the President’s trade policies.
