US stock futures pulled back on Monday as Wall Street braced for a turbulent week, with renewed trade tensions and a wave of second-quarter earnings set to test investor sentiment.
Futures tied to the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) dropped 0.5%. Dow Jones Industrial Average futures (YM=F) also fell around 0.5%, or over 200 points, setting stocks up to add to Friday’s losses.
The moves follow President Donald Trump’s announcement on Saturday that the US will impose 30% tariffs on goods from the European Union and Mexico starting August 1. The new duties raise the stakes for global trade relations and add to existing inflationary pressures. Officials from the EU and Mexico have signaled a willingness to continue negotiations in hopes of securing a reduced rate.
Sunday night’s declines come on the heels of a losing week for stocks, even as indexes remain near record highs. All three major US indexes ended three-week winning streaks on Friday.
Read more: The latest on Trump’s tariffs
The timing adds to market uncertainty, with June CPI inflation data scheduled for release this week. Investors are looking for signs of how earlier rounds of tariffs are impacting prices across the US economy, with eyes watching the Federal Reserve as a decision on rate cuts is expected in just over two weeks.
Tensions between the White House and the Fed continue to bubble, adding a layer of uncertainty onto the economic landscape. National Economic Council Director Kevin Hassett said Sunday to ABC News that President Trump could remove Fed Chair Jerome Powell “if there’s cause.”
Meanwhile, earnings season kicks into swing this week, with all the major US banks due to report results starting on Tuesday. Investors are showing interest in IPO and M&A markets, while Wells Fargo (WFC) reports after being freed from decade of stringent regulatory restrictions.
Results from Netflix (NFLX) on Thursday will kick off earnings from big US tech names, with ASML (ASML) and Taiwan Semiconductor Manufacturing (TSM) set to offer key updates on the AI-related chip boom. PepsiCo (PEP), United Airlines (UAL), and American Express (AXP) are among the other notable companies due to release their quarterly results.
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