U.S. stock futures tumbled on Monday morning as investors braced for another volatile week on Wall Street. The Dow Jones Industrial Average futures dropped over 300 points, while the S&P 500 and Nasdaq futures also sank, down 1.1% and 1.4% respectively. The market jitters come amid ongoing concerns about President Donald Trump’s tariff policies and their potential impact on the U.S. economy.
Over the weekend, Chicago Federal Reserve President Austan Goolsbee warned that these tariffs could dampen economic activity. Trump’s public criticism of Federal Reserve Chair Jerome Powell has also unsettled investors, sparking debates about the central bank’s independence. The president called for a rate cut last Thursday, while his economic advisor, Kevin Hassett, indicated that ongoing discussions were taking place within the administration’s economic team.
Adam Crisafulli of Vital Knowledge wrote, “Investors are dealing with a fresh source of macro anxiety: Trump’s threats to Fed independence.” He noted that the concurrent declines in equities, the U.S. dollar, and Treasuries reflect a significant shift away from American financial assets triggered by the trade war. In corporate news, Nvidia’s stock fell nearly 6% last week after the tech company disclosed restrictions on the export of its H20 graphics processing units to specific international markets, including China. Investors are also gearing up for a critical earnings week, with over 100 S&P 500 companies slated to report results in the coming days.
Tariffs spark investor unease
Major firms, including some of the prominent “Magnificent Seven” companies, will be in focus. Tesla’s shares have felt the pressure ahead of its quarterly earnings announcement, dropping more than 4% last week.
CEO Elon Musk’s involvement with the Trump administration has also raised questions about potential brand damage. Stocks making notable premarket moves include Netflix, which added 2% on a strong earnings and revenue beat, and Amazon, which ticked 1.7% lower after Raymond James downgraded the stock, citing concerns about tariffs. Asia-Pacific markets showed mixed performance on Monday as China’s central bank held benchmark lending rates steady.
Mainland China’s Shanghai Composite rose 0.33%, while Japan’s Nikkei 225 and South Korea’s Kosdaq saw declines. Looking ahead, Canaccord Genuity’s Michael Graham advised investors to brace for more volatility, especially as the 90-day reciprocal tariff pause comes to an end in July. “We see this date looming as a potential overhang and expect volatility is likely to persist until then and perhaps intensify as the date approaches,” wrote Graham.
As investors navigate this turbulent period, they will be closely monitoring developments related to trade uncertainties, Federal Reserve policies, and corporate earnings.
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