March 3, 2025 – U.S. stock index futures remained largely unchanged on Sunday evening as investors navigated heightened market uncertainty ahead of the implementation of new tariffs under President Donald Trump’s administration.
Futures tied to the S&P 500 edged up 0.1% to 5,979.00 points, while Nasdaq 100 futures also rose 0.1% to 20,941.25 points. Meanwhile, Dow Jones futures hovered near 43,897.0 points, reflecting cautious investor sentiment following sharp monthly declines in February.
Trump Tariffs Set to Take Effect, Market Awaits Details
Commerce Secretary Howard Lutnick confirmed in a Fox News interview that tariffs on imports from Mexico and Canada are scheduled to take effect on Tuesday, March 4. While the initial proposal suggested a 25% tariff, Lutnick noted that Trump will finalize the exact levels on the same day. Additionally, the administration is expected to impose an extra 10% tariff on Chinese imports.
Uncertainty surrounding trade policy contributed to February’s market declines, with the Nasdaq Composite losing 4%, the S&P 500 slipping 1.5%, and the Dow Jones falling 1.6%. The selloff was driven by concerns over the impact of tariffs, particularly on technology stocks, and shifting expectations around artificial intelligence investments.
US Economy Begins 2025 on a Weak Note
Despite a series of 100-basis-point rate cuts by the Federal Reserve last year, inflation remains a key concern. Data released on Friday showed the PCE price index rose 0.3% in January, matching December’s increase. On an annual basis, inflation eased slightly to 2.5% from 2.6% in December, while core inflation (excluding food and energy) moderated to 2.6% from 2.9%.
However, consumer sentiment dipped 0.2% in January, marking its first decline in nearly two years. Analysts point to trade policy uncertainty and lingering inflationary pressures as factors weighing on consumer confidence.
Economic growth projections have also softened, with the Atlanta Federal Reserve now forecasting a 1.5% annualized growth rate for Q1 2025—down from 2.3% in the previous quarter.
“The economy has started 2025 on a weak footing, with the negatives of President Trump’s policy decisions taking an early toll on consumer confidence and spending, while importers scramble to adjust to upcoming tariffs,” analysts at ING noted.
As investors digest the evolving economic landscape, market volatility is expected to persist, making trade and monetary policy key areas of focus in the coming weeks.
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