This morning’s pullback follows Monday’s flat session, where all three major indexes ended the day with minor moves as traders kept a close eye on developments from Washington and Beijing. What’s fueling the uncertainty? A mix of politics, tariffs, and shifting economic forecasts.
Why are U.S. stock futures slipping this morning?
The main reason U.S. stock futures today are trending lower is growing investor unease over international trade tensions, especially between the U.S. and China. President Donald Trump is expected to speak with Chinese President Xi Jinping this week. According to Reuters, the White House set a Wednesday deadline for countries to submit trade proposals—part of a fast-track effort to finalize major trade deals within five weeks.
Adding fuel to the fire, Trump announced he’s planning to double tariffs on imported steel and aluminum, pushing the tax rate to 50%. This announcement sent a chill through markets, especially hitting automakers like Ford, General Motors, and Stellantis, whose shares dropped Monday amid fears of rising production costs.
Investors are now on edge, wondering how global supply chains and corporate profits might be impacted if these trade disputes escalate further. The uncertainty is dragging down market sentiment heading into Tuesday’s session.
What does the latest economic outlook mean for the market?
Another factor weighing on U.S. stock futures today is the revised global economic outlook released by the OECD. The organization lowered its worldwide growth forecast to 2.9% for 2025, citing pressures from the ongoing trade disputes and slowing economic activity in key regions. For the U.S., growth projections were also cut. The GDP is expected to grow just 1.6% this year, with a further slowdown to 1.5% in 2026. That’s a notable drop from 2.8% in 2024, raising concerns that the U.S. economy might be heading into a cooling period after years of steady expansion. According to Investopedia, the market will be watching closely for signs of how this revised outlook might shape future Federal Reserve policy, especially any hints about interest rate cuts or pauses.
Which stocks are moving in premarket trading?
Despite the broader drop in U.S. stock futures today, a few individual names are standing out. Retailer Dollar General (DG) is one of the big premarket gainers. The stock jumped 11% after the company beat Wall Street expectations for its Q1 earnings and raised its full-year outlook for both sales and profit. That’s a rare bright spot in a nervous market.
Palantir Technologies (PLTR) is also turning heads. The company’s stock reached a new all-time high for the second day in a row. A big reason? Increased adoption of its Foundry AI software by the U.S. government, which is boosting investor confidence.
On the flip side, automakers continue to feel the heat from tariff talk. GM, Ford, and Stellantis remain under pressure after Monday’s dip, with fears mounting that a prolonged tariff hike could cut into their bottom lines.
What’s next for U.S. stocks this week?
Looking ahead, traders will be keeping a close eye on several upcoming catalysts that could shake the market further. These include:
- President Trump’s meeting with President Xi on trade
- Wednesday’s trade proposal deadline
- Any updates from the Federal Reserve regarding interest rates
- Friday’s May jobs report, which could offer new insight into the health of the labor market
The direction of U.S. stock futures today gives us an early signal of how sensitive investors are to headlines. With high uncertainty and conflicting signals on both policy and economic growth, markets are likely to stay volatile for the days ahead.
For now, it’s clear: between trade tensions, new tariffs, and slower economic growth, caution is ruling the day on Wall Street.
