At around 6:15 a.m. ET, Dow Jones Industrial Average futures were down 140 points, or 0.3%, after falling more than 200 points overnight. S&P 500 futures slipped 0.28%, and Nasdaq 100 futures fell 0.30%, reflecting broad concerns about the global trade outlook and its impact on U.S. companies.
How are U.S. stock futures performing today?
Before the opening bell, major index futures were in the red:
- Dow Jones futures dropped by roughly 130–158 points (–0.3% to –0.4%)
- S&P 500 futures slipped 15–20 points (–0.3% to –0.5%)
- Nasdaq-100 futures dipped 65–90 points (–0.3% to –0.4%)
This weakness reflects renewed market jitters over potential economic fallout from escalating trade tensions and uncertainty around upcoming economic data.
What’s weighing on markets this morning?
The major catalyst? Fresh tariff threats. President Trump has announced plans for 30% tariffs on EU and Mexican imports starting August 1, stoking fears of retaliatory moves and higher input costs for U.S. manufacturers.
While Wall Street analysts largely see the move as part of Trump’s negotiation playbook, the timing—on the eve of a packed earnings week—has added an extra layer of stress.
Which major indices and ETFs are slipping?
Here’s how the big three market ETFs are moving in early trading:
- SPDR S&P 500 ETF (SPY): –0.35%
- Invesco QQQ Trust (QQQ): –0.20%
- SPDR Dow Jones Industrial Average ETF (DIA): –0.65%
Which stocks are making the biggest moves?
Some individual names are still standing out despite the cautious sentiment:
- Boeing (BA) jumped nearly 2% premarket after a positive update on aircraft safety measures.
- Big Tech stocks were mixed:
- Apple (AAPL) edged lower
- Nvidia (NVDA), Tesla (TSLA), and Amazon (AMZN) posted modest gains
What did Trump announce and how are markets reacting?
On Saturday, Trump declared that the United States would impose 30% tariffs on goods from both the EU and Mexico starting August 1. This sparked concern among investors and trading desks early Monday. However, optimism remains that these tariffs might be negotiated down as both EU and Mexican officials signaled willingness to continue discussions with the Trump administration through July.
This announcement follows a recent pattern where Trump uses tariff threats as leverage ahead of trade negotiations. The market reaction was swift, though losses eased as traders priced in the possibility of last-minute changes or delays.
How could these tariffs impact inflation and corporate profits?
The new tariff threats are arriving just as investors await fresh inflation data this week. Economists and market strategists are watching closely to see how these duties—along with existing tariffs—are influencing consumer prices and corporate profit margins.
Peter Boockvar, CIO at Bleakley Financial Group, noted on CNBC’s Fast Money that tariffs bring inflation, but who absorbs the cost depends on the company. “Those with pricing power will pass it to consumers,” Boockvar said. “Those without will see a hit to profits.”
So far, inflationary effects have been uneven, and this week’s data could help clarify how embedded price increases have become.
- Dow Jones Industrial Average Futures:
Currently trading near 44,437, down approximately 162 points or -0.36%. The index saw earlier losses of over 200 points overnight before recovering some ground. - S&P 500 Futures:
Sitting around 6,278.5, down 21.5 points or about -0.34%. The index has pulled back slightly after reaching recent record highs in previous weeks. - Nasdaq 100 Futures:
Trading near 22,875.5, falling 83.5 points or about -0.36%. Tech-heavy Nasdaq futures continue to face pressure, edging closer to correction levels.
Is there tension between Trump and the Federal Reserve?
In addition to trade concerns, markets are watching the growing rift between the Trump administration and Federal Reserve Chair Jerome Powell. On Sunday, National Economic Council Director Kevin Hassett told ABC News that Trump has the authority to fire Powell “if there’s cause.”
Meanwhile, OMB Director Russell Vought accused Powell of “gross mismanagement” and criticized a costly renovation of the Fed’s headquarters, suggesting that Powell misled Congress about the project. Trump added fuel by saying Powell’s resignation would be a “good thing.”
This political pressure on the Fed adds a layer of uncertainty as the central bank balances economic data, interest rates, and now, political tension.
What’s on the economic calendar this week?
Investors are preparing for a flood of updates that could shape the market’s next big move:
- Bank earnings kick off this week with JPMorgan, Citigroup, Wells Fargo, Goldman Sachs, Bank of America, and Morgan Stanley all reporting between Monday and Wednesday.
- June CPI data drops Tuesday (July 15), offering a key read on whether inflation pressures are cooling.
- Producer price index and retail sales numbers follow later in the week.
All of this comes as Wall Street keeps a close eye on the Federal Reserve, with growing speculation about a possible rate cut in September. However, July cuts remain off the table for now.
What are analysts saying about the tariff impact?
- Morgan Stanley is warning that the tariff threats could start to bite hard in Q3, squeezing corporate profit margins and pushing inflation higher.
- Goldman Sachs, meanwhile, remains cautiously optimistic, keeping a bullish outlook on the S&P 500 but flagging short-term volatility as a risk.
- Interestingly, U.S. banks are expected to report a $26 billion windfall in Q2 from trading activity driven by global tariff volatility.
What’s next for earnings season and big banks?
Despite trade concerns, investors are gearing up for second-quarter earnings, with results from major banks like JPMorgan Chase, Goldman Sachs, and Bank of America set to be released starting Tuesday.
This week will offer a clearer view into how corporations are handling inflation, rising costs, and slower global growth. Financial stocks in particular will be in focus, as investors assess loan growth, interest income, and credit conditions.
Given the recent weakness—the S&P 500 fell 0.3% last week, while the Dow dropped 1%, both snapping multi-week winning streaks—strong earnings could provide a catalyst for recovery.
Could the EU respond with retaliation?
According to Bloomberg, EU officials are now considering retaliatory tariffs if the U.S. tariffs are not withdrawn. Sources suggest the EU may expand talks with other countries affected by previous Trump tariffs in a strategic pushback.
With August 1 set as the tariff start date, the next few weeks will be crucial. Markets will be watching diplomatic signals, trade negotiation updates, and possible EU moves closely.
Additional Futures Market Data (Morning Overview)
- Russell 2000 Futures:
Down -0.30%, reflecting cautious sentiment in small-cap stocks. - Crude Oil Futures (WTI):
Slightly up by +0.15%, hovering around $82.65 per barrel amid mixed supply-demand signals. - Gold Futures:
Flat to mildly positive, currently near $2,373 per ounce, supported by investor hedging against inflation and economic uncertainty. - 10-Year Treasury Yield Futures:
Holding at approximately 4.20%, with bond markets waiting for fresh CPI and PPI data to guide interest rate expectations. - VIX Futures (Volatility Index):
Marginally higher at 14.9, showing a slight rise in market fear but still relatively low historically.
What else is moving markets?
Outside of trade and inflation, Bitcoin surged again, hitting a record high of $119,300, marking its fourth all-time high in the past week. The rally comes just ahead of “Crypto Week” starting July 14, during which lawmakers are expected to discuss regulatory proposals around digital assets, stablecoins, and blockchain technologies.
Separately, Tesla CEO Elon Musk said shareholders will vote on whether the company should invest in his AI firm xAI, following reports that SpaceX plans to invest $2 billion into the startup behind the Grok chatbot.
US stock futures
| Index | Current Price | Change |
| Dow Jones | 44,437 | –0.36% |
| S&P 500 | 6,278.5 | –0.34% |
| Nasdaq 100 | 22,875.5 | –0.36% |
US stock market futures are pointing to a softer open as Wall Street reacts to fresh trade worries, upcoming inflation data, and the kickoff of earnings season. Traders are closely watching for more clarity as the week unfolds.
What should investors watch now?
This week’s market focus is threefold:
- Impact of Trump’s 30% tariffs on global trade and inflation.
- Tensions between Trump and the Fed, especially around Powell’s role.
- Corporate earnings from major banks, which may help stabilize investor sentiment.
With so many headlines at once, volatility could remain elevated. But for now, investors appear to be cautiously betting that negotiations—both trade and political—may take a more moderate turn in the days ahead.
FAQs:
Q1: Why did stock futures fall after Trump’s 30% tariff announcement?
Stock futures dropped due to Trump’s new 30% tariffs on EU and Mexico starting August 1, sparking trade tension.
Q2: What key events could affect U.S. stock markets this week?
Markets are watching earnings reports, new inflation data, and tensions between Trump and the Fed Chair Powell.
