U.S. stock index futures dropped on Monday evening, as investors remained uneasy about the possibility of more exemptions from President Donald Trump’s trade tariffs.
After two consecutive days of gains, futures retreated as market optimism from Trump’s decision to remove tariffs on smartphones and other electronics faded. On Monday, Trump hinted at possible exemptions for automobiles, but his unpredictable stance on tariffs raised doubts about the future direction of U.S. economic policy, causing concerns among investors.
By 7:18 p.m. ET (11:18 p.m. GMT), S&P 500 Futures fell by 0.3% to 5,422.75 points, while Nasdaq 100 Futures dropped by 0.4% to 18,854.25 points. Dow Jones Futures also slipped 0.3%, settling at 40,639.0 points. Trading volumes are expected to decrease this week ahead of the Good Friday holiday.
Wall Street Gains, but Trade Tariff Concerns Persist
Despite these uncertainties, Wall Street posted two days of gains. Investors welcomed Trump’s tariff exemptions on electronics, and some bargain buying helped lift the market following recent losses.
The S&P 500 climbed 0.8% to 5,405.97 points, while the NASDAQ Composite rose 0.6% to 16,831.48 points. The Dow Jones Industrial Average also gained 0.8%, reaching 40,524.79 points on Monday.
However, the market’s optimism was short-lived. Trump’s comments suggested that tariff exemptions on electronics might only be temporary, and he indicated plans to impose new tariffs on these goods in the coming days. This back-and-forth stance on trade policy created uncertainty about the U.S. economic outlook and dampened investor confidence.
The dollar hit a three-year low, and U.S. Treasury bonds saw heavy sell-offs. Tariff tensions also weighed heavily on investor sentiment, with both the U.S. and China imposing hefty tariffs on each other’s goods last week. Trump’s tariffs on China totaled 145%, while China retaliated with a 125% tariff on U.S. products.
Earnings Reports and Federal Reserve Comments Ahead
Despite these challenges, Wall Street found some support in strong first-quarter earnings from major banks, which signaled resilience in corporate profits amid growing economic concerns.
In the coming days, more earnings reports are expected, with Johnson & Johnson, Bank of America, Citigroup, and United Airlines set to release results on Tuesday. Additionally, several Federal Reserve officials, including Chair Jerome Powell, will speak this week, with the market closely watching their comments on interest rates amidst the ongoing uncertainty over trade tariffs and fears of a potential recession.
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