US stock futures edged higher early Monday as investors grappled with ongoing uncertainty surrounding President Donald Trump’s impending tariffs on major US trading partners. The cautious optimism follows a volatile month across financial markets, while cryptocurrencies staged a sharp rebound after Trump announced the creation of a US strategic crypto reserve.
Modest Gains in Stock Futures
Futures tied to the Dow Jones Industrial Average rose 47 points, while S&P 500 futures climbed 0.2% and Nasdaq 100 futures advanced 0.25%. The modest uptick comes as investors await further clarity on the scope of Trump’s trade tariffs set to take effect on Tuesday.
Commerce Secretary Howard Lutnick told Fox News on Sunday that tariffs on Mexico and Canada remain “fluid,” suggesting they could be lower than the initially proposed 25%. However, he confirmed that the 10% levy on Chinese imports is “set” and will proceed as planned.
Meanwhile, Treasury Secretary Scott Bessent indicated that Mexico has offered to match US tariffs on China—a potential bargaining chip to avoid penalties on its own exports.
Warren Buffett Warns of Inflation Risks
Legendary investor Warren Buffett voiced rare criticism of the tariff strategy over the weekend, warning that the duties could fuel inflation and hurt consumers.
“Tariffs are an act of war, to some degree,” the Berkshire Hathaway CEO said. “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!”
Market volatility has intensified in recent weeks, with all three major US stock indexes closing lower in February. The S&P 500 shed 1.4%, the Dow Jones fell 1.6%, and the tech-heavy Nasdaq Composite slumped 4%—its worst monthly performance since April 2024.
Bitcoin Surges on US Crypto Reserve Announcement
While equity markets remained jittery, cryptocurrencies rallied on Sunday after Trump unveiled plans for a US strategic crypto reserve. The reserve will include Bitcoin and Ether, marking the first time the US government has pledged to hold digital assets.
Bitcoin surged 10% to nearly $94,000, rebounding from a three-month low under $80,000 on Friday.
Key Economic Data Ahead
Investors are now turning their attention to the February jobs report set for release on Friday. The report is expected to show a slowdown in hiring, potentially bolstering expectations for Federal Reserve rate cuts later this year.
With mounting geopolitical tensions, trade uncertainties, and a shifting economic landscape, markets are bracing for another turbulent week.
