Stock futures saw a decline on Sunday as investors prepared for a week filled with significant economic data and awaited potential new tariff measures from President Donald Trump.
Futures linked to the Dow Jones Industrial Average dropped 62 points, or 0.14%. Similarly, S&P 500 futures fell by 0.18%, and Nasdaq 100 futures edged down 0.26%.
According to a Bloomberg report, Trump revealed plans to announce a 25% tariff on all steel and aluminum imports on Monday. While the exact timing of the tariffs remains unclear, the president indicated that retaliatory measures would also be taken against countries imposing taxes on U.S. imports. This announcement follows the implementation of tariffs on China, set to take effect at midnight on Sunday.
The new tariff threat comes ahead of a busy week of economic reports. The January consumer price index (CPI) will be released on Wednesday at 8:30 a.m. ET, followed by initial jobless claims and the producer price index (PPI) on Thursday. Additionally, Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Monday.
Lydia Boussour, Senior Economist at EY-Parthenon, warned that the combination of steep tariffs and rising policy uncertainty could lead businesses to adopt a more cautious approach, potentially reducing hiring and increasing the risk of a slowdown in job growth. “This could lead to a more severe job slowdown, weaker income, and restrained consumer spending amid much higher inflation,” she noted.
Market sentiment remains unsettled, driven by concerns over inflation and the possible negative impact of Trump’s tariff policies on the broader U.S. economy. Investors are also preparing for key corporate earnings reports this week, with McDonald’s set to announce on Monday and Coca-Cola following on Tuesday.
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