U.S. stock futures posted modest gains in overnight trading on Sunday as investors remained cautious ahead of President Donald Trump’s impending tariff announcements on key trading partners.
Futures tied to the Dow Jones Industrial Average climbed 77 points, while S&P 500 futures rose 0.2%. Nasdaq 100 futures led the gains, advancing 0.6% as markets digested uncertainty surrounding trade policy and its broader economic implications.
Tariff Plans Remain Unclear
Commerce Secretary Howard Lutnick stated in a Fox News interview that tariffs on imports from Mexico and Canada, set to take effect on Tuesday, remain “fluid.” While the original proposal suggested a 25% levy, the final rate could be adjusted. However, Lutnick confirmed that an additional 10% tariff on Chinese imports is firmly in place.
Meanwhile, Treasury Secretary Scott Bessent revealed on CBS that Mexico has proposed matching U.S. tariffs on China in an attempt to avoid its own tariff penalties from Washington.
Warren Buffett Warns of Tariff Risks
Legendary investor Warren Buffett weighed in on the ongoing tariff debate, cautioning that such measures could fuel inflation and burden consumers.
“Tariffs, we’ve seen them before, and they’re a form of economic warfare,” the Berkshire Hathaway chairman said. “At the end of the day, they act as a tax on goods—except the Tooth Fairy doesn’t pay for them!”
Market Volatility Persists
The uncertainty surrounding Trump’s trade policies has contributed to market instability, with all three major stock indices posting losses in February. The S&P 500 dropped 1.4%, the Dow declined 1.6%, and the tech-heavy Nasdaq Composite suffered a 4% loss, marking its worst month since April 2024.
“Whether the stock market can weather this shift remains to be seen,” said Chris Rupkey, chief economist at FWDBONDS. “One way or another, tariffs will be a shock to the economy.”
Cryptocurrency Surge Following Trump’s Crypto Reserve Announcement
While equity markets grappled with trade policy uncertainty, cryptocurrencies saw a strong rebound over the weekend. Bitcoin surged 10% to approach $94,000 after briefly dipping below $80,000 on Friday. The rally followed Trump’s announcement of a U.S. strategic crypto reserve, which will include holdings in Bitcoin and Ether.
Key Economic Data Ahead
Investors are also bracing for a crucial February jobs report due Friday, which is expected to indicate a slowdown in job creation. The report could influence the Federal Reserve’s next steps in managing inflation and interest rates.
With a high-stakes week ahead, markets remain on edge as traders navigate shifting economic and policy landscapes.
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