US stock index futures remained largely unchanged on Sunday evening, following a turbulent February on Wall Street. Investors adopted a cautious stance ahead of President Donald Trump’s tariffs set to take effect this week, while weighing recent economic data reflecting moderate inflation growth and declining consumer sentiment.
Market Snapshot
By 18:34 ET (23:34 GMT), S&P 500 Futures edged up 0.1% to 5,979.00 points, while Nasdaq 100 Futures gained 0.1% to 20,941.25 points. Dow Jones Futures hovered at 43,897.0 points, showing little change from the previous session.
Trump Tariffs to Take Effect Amid Ongoing Uncertainty
US Commerce Secretary Howard Lutnick confirmed in an interview on Fox News that tariffs on Mexican and Canadian imports are scheduled to be imposed on Tuesday, March 4, 2025. While the original plan called for a 25% tariff, Lutnick indicated that the final rate would be determined by President Trump on the day of implementation. An additional 10% tariff on Chinese imports is also set to take effect.
The tariff announcements have rattled markets, contributing to sharp monthly losses across major stock indexes. The Nasdaq Composite fell 4% in February, marking its worst monthly performance since April 2024, while the S&P 500 and Dow Jones Industrial Average lost 1.5% and 1.6%, respectively.
US Economy Starts 2025 on a Weak Footing
Despite the Federal Reserve’s 100-basis-point interest rate cuts in 2024, the US economy entered 2025 under strain. January’s Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation gauge—rose 0.3%, matching December’s rate. Year-over-year, headline inflation edged down to 2.5% from 2.6% in December, while core inflation slowed to 2.6%, down from 2.9%.
However, consumer sentiment declined 0.2% in January—its first drop in nearly two years—amid mounting tariff concerns and persistent inflation. The Atlanta Federal Reserve now projects US GDP growth to slow to 1.5% in the first quarter of 2025, down from 2.3% in the previous quarter.
“The economy has started 2025 on a weak footing with the ‘negatives’ from President Trump’s policy thrust taking an early toll via weaker consumer confidence and spending at the same time as importers look to front-run the threat of tariffs,” ING analysts said.
Outlook Remains Uncertain
Investors are bracing for further volatility as the week unfolds, with the highly anticipated February jobs report set for release on Friday. The report is expected to show a slowdown in hiring, which could further complicate the Federal Reserve’s next move on interest rates.
Meanwhile, the combination of easing inflation, declining consumer sentiment, and geopolitical tensions continues to paint a complex economic landscape for the months ahead.
